The rapid emergence and evolution of electric vehicles has been one of the most remarkable stories in the history of the automobile industry.
In just a little over a decade, the rise of such companies as BYD and Tesla has challenged the traditional automakers.
Despite the various achievements of the past few years, the outlook for the electric vehicle industry is still uncertain.
Due to the slow growth in the global market, the demand for electric cars is expected to reduce.
The introduction of new models has contributed to the rapid growth of the electric vehicle industry.
In 2021, electric vehicle sales reached 6.75 million, which is a 108 percent increase from the previous year’s sales.
In 2022, the number of electric cars sold grew by 3.66 million, and in 2023, it reached 14.2 million.
The signs of a potential decline in the electric vehicle market began to appear in October, November, and December of 2023.
In several of the world’s largest EV and automotive markets, the demand for electric cars has been decreasing. In China, for instance, the country’s new-energy vehicle sales in January were at 729,000 units, a decrease of 39 percent from the previous month.
The production of electric cars in China decreased by 33 percent to 787,000 units.
The country’s passenger car association claimed that the increasing prices of certain models and the declining government offers for the purchase of new NEVs were the main factors that affected the electric vehicle industry. According to S&P Global Commodity Insights, the electric vehicle market had accounted for 29.9 percent of all new car sales in January.
The US, which is regarded as one of the largest automotive markets in the world, is also experiencing slow growth in the electric vehicle sector. Despite the positive developments in the electric vehicle industry, it is still not as fast as previously anticipated. According to data released by Bloomberg, the sales of electric cars in the last three months of 2018 were only 1.3 percent higher than the previous year.
According to industry insiders, the slow growth of the electric vehicle market in the US is largely due to the lack of solid discounts and dealer support. This has created a lot of uncertainty for the potential buyers of electric cars.
During an earnings call, Mary Barra, the CEO of General Motors, stated that the company would continue to build on the demand for electric cars. She noted that Ford had also cut its production of electric vehicles.