Global electric vehicle sales are projected to hit a record 16.7 million units in 2024, up from 13.9 million in 2023
Despite concerns about a slowdown in the electric vehicle (EV) market, global electric vehicle sales are on track to reach a record 16.7 million units in 2024, according to BloombergNEF (BNEF). This projection marks a substantial increase from 13.9 million units sold in 2023 and aligns with forecasts set at the beginning of the year.
Data presented at the recent BloombergNEF Summit in London highlights a 26% increase in global electric vehicle sales during the first half of 2024 compared to the same period in 2023. Preliminary figures suggest sales rose by 30% in September. Although this growth rate is slower than previous years—33% in 2023 and 60% in 2022—the current expansion builds on a much larger base.
The sales figures include both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). While demand for BEVs remains robust, many automakers are shifting focus toward PHEVs to address changing consumer preferences. Companies such as Jaguar Land Rover, Volvo, BMW, Toyota, Ford, and General Motors have adjusted their strategies, delaying purely electric vehicle launches and expanding hybrid offerings.
Government policies and subsidies play a significant role in shaping global electric vehicle sales. In regions like China, generous subsidies and tax incentives have fueled robust growth. For example, Chinese buyers benefit from financial incentives that make EVs more accessible, and government-backed initiatives support the expansion of charging infrastructure.
By contrast, Europe has faced challenges in maintaining consistent growth. Germany, a key market, saw a sharp 61% drop in electric vehicle sales in August 2023. This decline stemmed partly from a rush to purchase vehicles before subsidies were reduced earlier in the year. Such policy shifts highlight how crucial consistent government support is for sustaining market momentum.
In the United States, the Inflation Reduction Act introduced substantial tax credits for EV buyers, boosting domestic demand. However, stringent requirements tied to battery sourcing and manufacturing have complicated eligibility for these incentives, potentially slowing adoption in the short term.
China, the world’s largest market for electrified vehicles, continues to drive global growth. Retail sales of BEVs in China rose 18% in 2024, while total plug-in sales surged by 37%. Hybrid vehicles are particularly popular in the region, further boosting the market’s momentum.
Meanwhile, European markets face a more complex landscape. Automakers are delaying the launch of affordable EV models until 2025, when stricter carbon dioxide emissions standards take effect. This pause mirrors a similar slowdown seen in 2019, ahead of 2020’s emissions regulations. Affordable models like the Renault 5, Hyundai Inster, Fiat Grande Panda, and VW ID2.all are expected to drive future growth.
Consumer preferences vary significantly across regions, shaping the trajectory of EV adoption and global electric vehicle sales. In China, hybrids appeal to buyers who value flexibility and cost efficiency. In contrast, U.S. consumers are increasingly drawn to larger EV models, such as trucks and SUVs, reflecting domestic market preferences for size and utility.
Europe presents a more price-sensitive market, where affordability is critical. Colin McKerracher, BNEF’s head of advanced transport, noted that high price premiums for electric models compared to their combustion-engine counterparts deter many buyers. For example, the Fiat 500e costs over €12,000 ($13,000) more than its gasoline equivalent, pricing out mass-market consumers despite only modestly higher production costs.
While the EV market is navigating growing pains, the industry remains on a solid upward trajectory. As automakers refine strategies, introduce more affordable models, and adjust to regulatory pressures, global electric vehicle sales are expected to strengthen. The next wave of growth may be driven by innovation in pricing and design, alongside expanded infrastructure and consistent policy support.
