Global Electric Vehicle Market: Size, Trends, and Projections

Crisis in the New Car Market: Declining Sales of Electric Vehicles

The new car market in Germany experienced a significant decline in August 2024, with a 69% decrease in electric car sales, 24% decrease in diesel car sales, and 7% decrease in gasoline car sales. This decline can be attributed to weak consumer willingness and geopolitical tensions. In 2023, there was an increase in electric vehicle registrations due to last-minute purchases before government incentives expired. However, there is no sustainable recovery in sight, with a total of 590,000 fewer new vehicles sold compared to 2019. Electric vehicles now account for 13.7% of new car sales in August 2024, down from 18.6% in 2023. In an effort to boost sales, the German government has decided to implement tax benefits for expensive electric company cars and retroactively introduce a special depreciation allowance for electric cars. This move is estimated to cost the state around 600 million euros per year. Despite the challenges faced by the electric car market, there is still growth projected globally, with the market expected to reach $491.20 billion by 2032 at a compound annual growth rate (CAGR) of 18.7%. Key players in the industry include Tesla, BYD, Volkswagen AG, Tata Motors, Hyundai, Nissan Motors, and Morris Garages. Volvo, a Swedish automaker, has adjusted its goal and will now focus on producing 90-100% electric or plug-in hybrid vehicles by 2030, with mild hybrids making up the remaining percentage. This decision is in response to changing market conditions and customer preferences, as well as the decrease in electric car purchases as company cars due to the expiry of environmental bonuses. However, concerns regarding higher repair costs for electric vehicles have emerged, with an survey showing that 56% of respondents reported higher repair costs compared to traditional combustion engine vehicles.