Global electric vehicle sales are anticipated to increase by 21% this year and 19% in 2025, which is less than the 31% increase seen in 2023 or the 60% boost observed in 2022.
The EV market is cooling, which ABI Research said is obvious when considering sales data and statements from OEMs. However, they also make it clear that a shortage of chargers and limited ranges are not to blame for the slowdown.
“While insufficient charging infrastructure and range limitations are often cited as reasons for this slowdown, they don’t fully explain the stagnation, especially considering that these aspects are actually improving rather than deteriorating,” said Dylan Khoo, Electric Vehicles Industry Analyst, in a statement. “Additionally, these explanations fail to consider the region-specific trends driving the EV sector changes.”
ABI research highlighted Germany and the United Kingdom as examples of real and significant stagnation in EV sales growth, which they said is mostly due to the withdrawal of subsidies. For the United States, they said EV sales issues stem mainly from an “unsustainable reliance on Tesla,” which is now faltering.
In China, the story is different: its market is seeing linear growth, EVs achieved 36% market share last year, and EVs are anticipated to make up more than 50% of overall car sales by 2025.
“China has set an example for the world to follow and demonstrated how to win over the public with EVs,” said Khoo in a statement. “If automakers can make a wide range of EVs at an attractive price, people will buy them.”
