China dominates the electric market
After a record year in 2023 marked by an increase in sales of electric vehicles of +35% year-on-year, growth should be a little less marked in 2024. It remains sustained since the IEA anticipates an increase in sales for 2024 of 20%. And China continues to crush the global market. Of the 17 million electric vehicles sold worldwide in 2024, nearly 10 million are expected to be sold on the Chinese market. By 2030, the IEA even predicts that one in three cars driving on Chinese roads will be electric.
The agency first explains these results by Beijing’s massive investments in this sector. But the director of the AIE especially emphasizes the choice to favor smaller and, above all, less expensive electric models. “ More than 60% of electric vehicles sold in China are cheaper and therefore more competitive than their equivalent with a thermal engine. This is why China now dominates the market by far, and which makes the country, de facto, the leading manufacturer of electric vehicles in the world. “, did he declare.
Beijing’s strategy also benefits Chinese manufacturers. More than one in two electric vehicles sold worldwide was produced in China. This abundant supply is destabilizing other markets, starting with Europe. In 2024, sales of electric vehicles are expected to increase by only 10% compared to last year. In addition to Chinese competition, Europe is facing the end of subsidies for the purchase of electric vehicles in certain countries. Europe must also address several challengessuch as making batteries more available and developing its electricity network.