Electric vehicle markets around the world are not all travelling in the same direction or at the same speed in 2024 according to a report by Bloomberg. Sales of EVs continue to rise globally, but some markets are experiencing a significant slowdown and many automakers have pushed back their EV targets. Progress varies by segment, with electric commercial vehicles set for another blistering year and segments like buses and two- and three-wheelers already reaching very high levels of electrification.
Passenger EV sales
China still dominates the global EV market, but sales are rising quickly elsewhere too. Electric vehicles are no longer only a wealthy country phenomenon. Developing economies like Thailand, India, Turkey, Brazil and others are all experiencing record sales as more low-cost electric models are targeted at local buyers.
Lithium-ion battery demand
Battery demand is rising quickly. Growth in battery demand for EVs has slowed slightly in the last year, but demand for stationary storage applications is rising faster than ever. Manufacturing of battery cells and the production of key battery components – such as cathodes, anodes, separators and electrolytes – is concentrated in China.
Demand
Margins on EVs are low for car makers. Michael Dean, BI senior industry analyst – Autos, said: “We expect automakers to remain cautious after weak quarter one results and against a backdrop of tariff uncertainty as Chinese EV brands attempt to gain a foothold in Europe, although luxury demand will remain resilient thanks to strong order books.
“The BEV pull-back will give legacy EU automakers a prolonged period of positive free cash from internal combustion engines vehicles, part of which is now being returned to shareholders but also reinvested in new technologies providing a boost versus pure BEV makers.”
He added: “Our consumer new-car buying poll in February highlighted European buyers’ concern over the high price of BEVs. Their main issue is a lack of charging infrastructure followed by range anxiety – issues which are unlikely to be addressed in the medium term and may see more policymakers delay the phasing out of ICE. Charging infrastructure is the biggest challenge, for which there is no quick fix to service a BEV fleet that’s growing by about 130,000 units per month in Europe.”
It said that BEVs are priced 30% higher than internal combustion engine vehicles (ICE) on average, yet margins are much lower as manufacturers strive to encourage more buyers to switch to EVs.