Global EV sales could be faster due to high capital costs and infrastructure issues, while India’s EV market surges significantly.
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Electric Vehicle
According to a recent article by Goldman Sachs, an investment management firm, the growth rate of sales of electric vehicles (EVs) is slowing worldwide.
The firm identified several factors contributing to this sluggish growth, including capital costs, uncertainty surrounding elections, and a shortage of rapid-charging stations.
Global EV Sales Trends
In the United States, sales data analyzed by Kelley Blue Book, a vehicle valuation and automotive research company, revealed that Americans purchased over 200,000 new electric vehicles in the first quarter of 2024.
Despite this significant number, EV sales as a percentage of all new car sales were 7.3 percent, down from Q4 2023.
While annual EV sales continue to grow, the growth rate has notably slowed.
Sales decreased by 15.2 percent from Q4 2023 but increased by 2.6 percent year over year in Q1.
This growth is significantly less than the prior two years, as noted by Kelley Blue Book.
Similarly, new car sales in Europe dropped in March for the first time this year due to a decline in EV registrations and the timing of the Easter holidays, as highlighted by the European Automobile Manufacturers’ Association (ACEA).
In the European Union (EU), March sales of new electric vehicles fell by 11.3 percent to 134,397 units.
This reduction was primarily driven by a 29 percent decrease in EV sales in Germany, Europe’s largest market.
Hybrid Vehicles on the Rise
Amid the sluggish demand for EVs, sales of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) are accelerating.
Over the last few months, the growth of HEVs and PHEVs in the US has exceeded that of EVs, according to the article.
What is Happening in India?
Contrary to the global trend, India continues to witness a surge in EV sales. The market registered a significant uptick, crossing 1.7 million units in the fiscal year 2024, according to a report by JMK Research & Analytics.
India’s passenger vehicle sales increased by 10 percent year-over-year in 2023, while the country’s sales of EVs more than doubled to make up 2 percent of total passenger vehicle sales.
According to the market research firm Counterpoint Research, India’s EV sales are anticipated to rise by 66 percent in 2024, with their market share in the passenger car segment expected to double from 2 percent to 4 percent.
Additionally, EV sales are predicted to comprise one-third of all passenger vehicle sales in India shortly.
This mixed global landscape highlights the varying challenges and advancements within the electric vehicle market, driven by regional economic conditions, infrastructure development, and evolving consumer preferences.
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