"Electric Vehicle Growth Rate Expected at 16.6% This Year... Half of Last Year's Figure "

Growth Rate Plummets by 16.9 Percentage Points Compared to 33.5% in 2023

Electric vehicle charging. Photo by Hyunmin Kim kimhyun81@

There is a forecast that the growth rate of the global electric vehicle market will significantly slow down compared to last year.

According to the 'Global Electric Vehicle Market and Battery Supply Outlook' report published on the 14th by energy market research firm SNE Research, global electric vehicle sales this year are expected to reach 16.412 million units, recording a growth rate of 16.6%.

This is a decrease of 16.9 percentage points (p) compared to last year's growth rate of 33.5%.

SNE Research analyzed that the main factors hindering the growth of the electric vehicle market include a decrease in pending demand due to early adopters completing their purchases, lack of charging infrastructure, and economic contraction caused by high inflation and high interest rates.

By region, China, the world's largest electric vehicle market, is expected to see sales increase by 18.5% to 9.97 million units. This is a slowdown compared to last year's growth rate of 34.6%, reflecting demand weakening due to the economic downturn and the impact of subsidy removal.

Following China, Europe (3.383 million units), North America (2.088 million units), Asia excluding China (791,000 units), and other regions (180,000 units) are expected to have high electric vehicle sales volumes in that order.

In Europe, the electric vehicle market growth is predicted to rebound from the second half of this year in line with significantly strengthened carbon emission regulations starting in 2025. In the United States, depending on the outcome of this year's presidential election, there is a rising possibility that traditional industries will be promoted instead of eco-friendly industries, leading to a surge in the 'electric vehicle transition speed moderation theory,' SNE Research reported.

SNE Research stated, "Despite concerns about demand slowdown, the electric vehicle market recorded sales of 14.07 million units last year, achieving a growth rate of 33.5%," and analyzed, "With short-term economic uncertainties intensifying, automakers are adjusting their production plans and sales strategies accordingly, so the growth slowdown of the electric vehicle market is expected to become more pronounced this year."