As global enthusiasm for electric vehicles continues to intensify, sales are forecast to skyrocket by 30% in 2025. According to S&P Global Mobility, EVs are expected to capture a 16.7% market share in 2025, a significant increase from the projected 13.2% in 2024.
While some automakers are shifting their focus towards hybrid models, the electric vehicle revolution is far from over. Industry analysts maintain an optimistic outlook, citing robust demand as the driving force behind a 30% surge in EV sales, even as certain companies moderate their pace of electrification.
S&P Global Mobility experts estimate that 15.1 million battery-powered EVs will be sold in 2025, representing 16.7% of global vehicle sales. While final sales figures for 2024 are still pending, preliminary data suggests that 11.6 million battery-powered EVs were sold, capturing 13.2% of the market.
Regional growth will exhibit significant variability, influenced by government policies, tariffs, incentives, and the availability of charging infrastructure. For example, despite an impressive annual growth rate of 117%, EV sales in India are projected to account for only 7.5% of total vehicle sales. In contrast, the United States is expected to witness a 36% growth in EV sales, achieving an 11.2% market share.
China, a global frontrunner in EV adoption, is forecast to retain nearly 30% of the global market. Although its growth rate may not outpace other regions, China's EV sales are poised to surpass those of internal combustion engine (ICE) vehicles for the first time by 2025. This milestone aligns with the government's ambitious target of having 50% of new car sales comprise EVs by 2035.
In the Middle East, numerous governments are actively championing the energy transition by implementing policies to support NEVs. Initiatives such as Saudi Arabia's "Vision 2030" and the UAE's "National Electric Vehicle Policy" provide crucial frameworks for facilitating the development of NEVs and their supporting charging infrastructure.
These policies offer a range of incentives, including car purchase subsidies, tax exemptions, free parking, complimentary charging, and priority access, effectively reducing both the cost and barriers to EV adoption. These measures are steadily increasing consumer acceptance and accelerating market growth for NEVs across the region.
Stay tuned as we continue to monitor the emergence of the latest EV models from GCC countries. Be sure to subscribe if you're interested in staying informed about this exciting sector!
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