Globally, the EV prediction for this year, 2024, looks more electrifying. The sales this year are expected to grow in double digits with the increased momentum that was experienced in 2023. Countries including China, the United States, South Korea, India, Japan, and Europe are going to lead the global market in terms of EV sales, especially in the passenger vehicle category.
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EV Market Drivers for 2024
- Introduction of new-range vehicles
EV players in the market are expected to launch new models with different aesthetic stylings in different price ranges. No more EVs are sold just for sustainability. They are becoming quite equivalent to conventional passenger vehicle styles and variants. This motivates people to at least consider EVs as an option when planning to buy a new vehicle.
- Advanced battery technologies
Battery technologies are evolving rapidly and they play a significant role in leveraging the performance and durability of EVs. Also, as technologies upgrade every now and then, vehicles with older battery technologies can show great discounts in prices. The reason is that battery cost contributes to about forty percent of the EV cost.
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- Reduction in EV prices
The reduction in prices is due to a lot of factors that are favorable to buyers.
- More EV players are in the market than before
- Still, the manufactured EVs are not completely sold
- The government offers support measures for buying EVs
- As new ones get launched, older ones are becoming cheaper
- Battery prices are getting reduced day by day due to advancements
This makes EVs more affordable and economical. And hence, we can foresee a bright future for passenger EVs.
- Supporting schemes and tax regimes
In the United States, EV tax credits in 2024 range between $4,000 and $7,500. In China, people can continue to enjoy the sales tax exemptions until 2025, with savings of up to $4,000. In India, EV buyers can get an exemption of about $2,000 in interest for loans. In Japan, people can enjoy exemptions of up to $2,700 for each battery-powered EV or hydrogen fuel-cell car purchased.
- Expansion of charging infrastructure
Appreciate the extended efforts of OEMs and charging station players in collaborating and expanding the charging infrastructure across more cities and countries. As intended, once the EV charging networks are materialized, we can expect more growth in EV sales.
Apart from the passenger vehicle market, EV manufacturers will also battle for the major share of truck vehicle space with their new EV models.
EV Market Challenges Expected in 2024
- Scaling up the production
As electric vehicles become cheaper and as people realize the importance of EVs for sustainability on a long-term basis, we might see a steady demand for these vehicles in the years to come. For that, the EV players had to invest in R&D and scale up at the moment. Thus, sourcing funds for these types of investments in the EV space could be a challenge.
- Intensified competition
In the last decade, we have seen many entrepreneurs and business owners invest in EV companies and vehicles. As a result, more players are entering the market without many market barriers. Thus, it became more competitive and intensified globally.
Conclusion
Considering the positive aspects of EVs, 2024 is definitely going to record the highest sales ever after the COVID-19 pandemic. Together, let’s strive for a greener future with EVs!
