Market For Electric Vehicles Is Expected To Grow Massively This Year - Rystad

Rystad Energy research projects that 17.5 million electric vehicle (EV) sales this year, or an 18.5% annual increase, will put the market for EVs on track for a watershed year in 2024 as emissions reduction targets collide with declining consumer spending amid persistent economic uncertainty.

According to the report, this will cause the percentage of newly sold cars that are either plug-in hybrid electric vehicles (PHEVs) or battery electric vehicles (BEVs) to rise from 19.2% in 2023 to approximately 21.8% by the end of 2024.

China will be crucial to the market's ongoing growth, according to the Oslo-based consulting firm, because of the country's substantial increase in domestic production. The company predicts that 11.5 million new electric vehicles will be sold in the nation this year, accounting for 44% of all new car sales.

Nonetheless, the EV scene appears noticeably different outside of China. At 3.3 million units this year, market penetration in Europe is predicted to increase, albeit more slowly than in previous years.

The US EV market had a dismal 2023 as consumers' decisions to convert to electric vehicles were made more difficult by uncertainty surrounding tax credits and interest rates. Riding on the momentum of the previous year, Chinese automakers are aggressively expanding into emerging markets, overshadowing established players, according to Abhishek Murali, senior energy systems analyst at Rystad.

In Malaysia, the use of electric vehicles is rising as a result of the government's implementation of policies that support environmentally friendly transportation. Statista predicts that the country's electric vehicle market will generate MYR US$176.5 million in revenue in 2024, growing at a rate of 4.98% annually.

Additionally, it forecats that in 2028, the market for electric vehicles will have 4.23k units sold. It is anticipated that the market for electric vehicles will have a volume-weighted average price of MYR US$51.7k by 2024.