Under the influence of electric vehicle (EV) sales skyrocketing to record quarterly heights so far in 2024, led almost entirely by Chinese consumer demand. In fact, last year the country sold 11 million EVs. This remarkable achievement translates into almost half of all vehicles sold in the Chinese market being EVs. This significant growth reflects a broader trend, as total global EV sales reached 17 million units, marking a 20 percent increase compared to 2023.
EV adoption is accelerating rapidly all around the world, not just China. South-East Asia and Latin America are currently witnessing extraordinary proliferation in this regard. Sales in these new markets jumped by 50 percent, indicating the growing global appetite for electric mobility. With the automotive industry moving away from internal combustion engines to more sustainable alternatives, manufacturers are changing their operations to meet this demand.
Record Sales in China
Last year, the Chinese market witnessed a monumental moment in history where EVs represented 50 percent of all vehicle sales. Monthly EV share soared again to 20 percent of total vehicle sales – an astounding feat and a new milestone for the nation. Sales continue to increase, driven by consumer demand for safe, sustainable alternatives. Second, electric vehicle technology is making rapid advances and lowering costs.
Chinese manufacturers were key to fueling much of this growth. Through a combination of providing the right number of models at the right price points, they have cornered both the domestic market and international markets, too. The average range of EVs across all models reached an estimated 340 kilometers, addressing one of the primary concerns consumers have had regarding electric vehicles: range anxiety.
“Our numbers show that despite many headlines saying EVs were not doing good in terms of sales, our numbers show another record of 17 million EVs, or an increase of 20 percent compared with the previous year.” – Faith Birol
Global Trends in Electric Vehicle Pricing
Even with the record sales increase, EVs still face a major barrier with the difference in pricing between EVs and comparable ICE models. In Germany, EVs are estimated to cost about 20 percent more than ICE vehicles. Here in the United States, that price differential jumps to 30 percent. In many markets, reality is on the cusp of a sea change toward price parity.
In Thailand, the price differential between EVs and ICE vehicles has narrowed to a point where the two types of vehicles are more equitably matched in their purchase prices. Countrywide price differences in Brazil have fallen to just 25 percent. In Mexico, they’ve fallen to just 50 percent. Both are big drops from 100 percent last year. This trend is reflected in the rapid growth of production and improving technology. These investments will help to make electric vehicles more affordable and available to all Americans.
“On a kilometre-driven basis, on the data we have today with oil at $US66 a barrel, in all key markets it is cheaper to run your car with electricity.” – Faith Birol
Growth Beyond China
China is still the undisputed global EV leader, that is starting to change. Bumper electric vehicle sales boosts in the South-East Asian and Latin America markets. Both of those regions have grown at a tremendous pace – 50 percent growth! This trend further highlights the worldwide transition to electric mobility.
Sales of PHEVs exploded in 2024. They leapt all the way from 11,000 units of production in 2023 to an astounding 21,000 units – yowza! Sales of battery electric vehicles jumped close to six percentage points. Unlike TIF, they skyrocketed from 87,000 units to 91,000 units during the same period. These burgeoning numbers are a testament to the growing consumer demand for alternative fuel vehicles as attractive, practical options for Americans’ personal transportation.
“This concentration is not good news, China is dominating this game big time.” – Faith Birol
Leave a Reply