Electric Car Sales Growth Is Slowing Globally. Here’s Why - Bloomberg

2024/3/28 18:51 Electric Car Sales Growth Is Slowing Globally.
Here’s Why - Bloomberg
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Electric Vehicle Sales Growth Is Slowing Globally. Here’s Why
https://www.bloomberg.com/news/articles/2024-02-01/electric-car-sales-growth-is-slowing-globally-here-s-why 1/9
2024/3/28 18:51 Electric Car Sales Growth Is Slowing Globally. Here’s Why - Bloomberg
An electric vehicle charging station in Doha. Photographer: Christopher Pike/Bloomberg
By Monica Raymunt and David Welch

年月日
2024 2 1 at GMT+8 16:59
Save 4:13
With road transportation accounting for about 15% of greenhouse gas emissions,
transitioning to cleaner vehicles is a linchpin in national efforts to meet climate-change
mitigation targets. Governments have encouraged a transition to electric vehicles with
massive subsidies, and legacy carmakers are changing their offerings in a slow farewell
to the combustion-engine era. EV demand continues to expand, but the rate of growth
has slowed.
1. How are EV sales going?

Global sales of EVs are still rising, but growth is slowing. According to BloombergNEF,
sales of all-electric vehicles plus plug-in hybrids that can also be powered by gasoline or
diesel more than doubled in 2021 and grew 62% in 2022. But the figure was 31% last year,
when 15% of all vehicles sold were plug-ins. BNEF forecasts that the annual increase will
slow again to 21% this year. China, where the government has used generous incentives
to expand the nascent carmaking industry and make EVs affordable, is by far the largest
market, accounting for 59% of 13.8 million plug-in sales in 2023, excluding
commercial vehicles. Europe accounted for 23% and North America for 12%.
2. Why is EV sales growth slowing?

Several carmakers have signaled that as China’s economy continues to struggle, the
country is no longer the reliable source of growth that it was in years past. The greater
issue is demand in Europe and the US. For the first wave of EVs, carmakers were able to
rely on tech enthusiasts and government subsidies for company-car purchases to boost
volumes. But for the next phase, they face more cost-conscious drivers, many of whom
are skeptical of the technology and balk at buying vehicles that are more expensive than
equivalent fuel-burning cars; on average all-electric vehicles are 30% and 27% pricier in
Europe and the US respectively. The subsidies and tax breaks that helped drive sales are
drying up in Europe, and the current incentives in the US are contingent on a local-
production threshold, limiting buyers’ choices. On top of sticker shock, consumers have
been put off by an increase in borrowing costs as central banks have moved to rein in
inflation. Some consumers are still anxious about charging infrastructure and battery
range. The rapid evolution of EV batteries can serve as an argument to postpone a
purchase until the technology is better.
Bloomberg
@business · Follow
Despite all the hype, demand for EVs is slowing down
@EdLudlow explains why bloom.bg/3HKi6l5
Watch on X
8:41 PM · Feb 5, 2024

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Read 5 replies
3. How are carmakers reacting to the slowing of EV demand?

Several carmakers, led by Tesla Inc., have cut prices repeatedly over the past year to win
customers. Many have also reduced output and staffing to maintain profits.
Manufacturers are racing to introduce several cheaper models. European versions
include Stellantis’ e-C3, the Renault 5 and the Volvo EX30. In the US, where only one
electric model sells
EV Slowdown: Sales for less Battery-Powered
Slump than $40,000,Blues
GM General Motors
Best Electric CarsCo Tough
is starting
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US an Tr
$57
electric Chevrolet Equinox starting at $35,000. Carmakers are investing heavily in
battery technology to win over wary potential buyers. BYD Co., the top EV brand within
China, and Tesla have led the pack in embracing lithium-iron-phosphate (LFP) batteries,
which have a lower energy density but cost less, boast a longer life and are perceived as
safer than the main alternative — nickel-cobalt-manganese batteries. Toyota, BYD, and
the Chinese battery company Contemporary Amperex Technology are all working on
developing solid-state batteries, which use high-voltage, high-capacity electrode
materials that boost battery performance and capacity compared to lithium-ion
technology. BNEF expects that solid-state batteries will be used more in premium
vehicle models in the short term due to higher manufacturing and raw material costs.
4. What’s at stake?
A slowing uptake of EVs could compromise government goals for containing the worst
effects of global warming. In 2021, the US set a target of having half of all vehicles sales
be electric as of 2030. The same year, the European Union agreed to ban the sale of new
fossil-fuel burning cars as of 2035.
The Reference Shelf

Related QuickTakes on China’s dominance of the EV sector and on LFP
batteries.
Bloomberg Businessweek examines why the EV revolution is a tough sell for

many Americans.
Bloomberg News examines the comeback in the US of the hybrid.
Get Alerts for:
Monica Raymunt David Welch
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2024/3/28 18:51 Electric Car Sales Growth Is Slowing Globally.

Here’s Why - Bloomberg

Electric Vehicle Sales Growth Is Slowing Globally. Here’s Why

By Monica Raymunt and David Welch

1. How are EV sales going?

2. Why is EV sales growth slowing?

8:41 PM · Feb 5, 2024

3. How are carmakers reacting to the slowing of EV demand?

The Reference Shelf

Bloomberg Businessweek examines why the EV revolution is a tough sell for

Bloomberg News examines the comeback in the US of the hybrid.

Get Alerts for:

Monica Raymunt David Welch

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

More From Bloomberg

Dubai Sheikh Abruptly Halts Plans for HK Family Office

Japan Amps Up Intervention Threat as Yen Hits Lowest Since 1990

UBS Banker’s Frustration Exposes Cracks in World of Climate Finance

FTX’s Original Sin Is a Warning to All of Crypto

Housing Crisis, Packed Hospitals and Food Lines: Even in Canada?

Market Data Economics

Careers Made in NYC Advertise Ad Choices Help

©2024 Bloomberg L.P. All Rights Reserved.

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