Summary
– China dominates the global EV market, with over half of EVs sold in 2023 produced by Chinese companies
– However, challenges such as price wars and protectionist backlash in Europe and the U.S. may limit China’s EV market growth
– Chinese carmakers are looking towards Southeast Asia and Latin America for growth opportunities, with Thailand being a key market due to government incentives
– Chinese-owned EV brands have been successful in Thailand, doubling their market share last year
– The EV market is expected to continue growing, with the IEA predicting that EV sales could reach 17 million in 2024, representing over 20% of all cars sold.
Article
China is currently dominating the global electric vehicle (EV) market, with more than half of all EVs sold last year being produced by Chinese companies. Sixty percent of all EV sales in 2023 were in China, making it the center of the industry. However, China’s EV success may be reaching its peak, as automakers in the country are engaging in price wars to boost sales and face potential market closures in Europe and the U.S. due to protectionist measures and consumer preference for hybrid vehicles.
The fate of China’s EV brands could potentially rely on economies in Southeast Asia and Latin America, where growth in EV sales is accelerating. Thailand, in particular, has introduced incentives such as subsidies and lower import taxes to boost EV adoption, which has attracted Chinese EV manufacturers like BYD and Great Wall Motor to set up facilities in the country. Chinese-owned EV brands have doubled their market share in Thailand, collectively holding 11% of the market. The president of the Electric Vehicle Association of Thailand forecasts that EVs will make up 20% of all vehicle registrations in the country this year.
Indonesia is also working to increase EV adoption, with a target set by outgoing president Joko Widodo for EVs to make up 20% of all Indonesian car sales by 2025. Currently, only 2% of the country’s auto sales are EVs, but Chinese brands like BYD and Chery, as well as Vietnam’s Vinfast, are beginning to sell in the country. The IEA remains optimistic about the EV market’s prospects for 2024, predicting that EV sales could reach 17 million this year, accounting for over one in five of all cars sold.
Overall, the IEA’s report highlights the potential for growth in the EV market in developing economies like Thailand and Indonesia, which could offset potential challenges in more established markets like China, Europe, and the U.S. Chinese EV manufacturers are expanding their presence in these regions, taking advantage of incentives and growing consumer interest in electric vehicles. While concerns about slowing EV sales persist, the IEA’s forecast suggests a positive outlook for the industry in the coming years, with EVs potentially accounting for a significant portion of global vehicle sales.
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