KAMA “Global Electric Vehicle Market Grows by 28.8%”
Pure electric vehicles grew by 16.3%, while PHEVs surged by 58.9%. China’s growth was largely aided by policies like the ‘Replacement of Old with New’ incentives.
Last year, two out of every three electric vehicles sold globally were in China, highlighting the significant growth of the Chinese market and manufacturers. The category of electric vehicles includes not only battery electric vehicles (BEVs) but also plug-in hybrid vehicles (PHEVs). The domestic market, however, showed negative growth, indicating a need for policy support.
On the 28th, the Korea Automobile Manufacturers Association (KAMA) released the ‘2024 Global Electric Vehicle Market Report’. According to the report, global electric vehicle sales last year reached 16,237,000 units, an increase of 28.8% compared to the previous year. Pure electric vehicle sales increased by 16.3% from the previous year, with 10,349,000 units sold, and plug-in hybrid sales rose by 58.9% to 5,888,000 units.
A regional analysis shows that the growth in China was significant. Sales in China reached 10,790,000 electric vehicles, accounting for 66.4% of global sales, and representing a 48.3% increase compared to 2023. The sales of PHEVs by local brands like BYD increased significantly, with their market share rising by 4.5 percentage points to 82.3% over the previous year.
KAMA explained, “The Chinese government’s incentives, including the ‘Replacement of Old with New’ policy, which provides subsidies for replacing old vehicles with new ones, had an effect.”
In contrast, the European market saw sluggish sales. Electric vehicle sales in Europe decreased by 2.1% from the previous year to 2,945,000 units. Its share of global sales fell by 3.8 percentage points to 18%. The reduction of incentives in major countries and tariffs on imported electric vehicles from China are seen as influences. The U.S. market saw a 6.9% increase from the previous year with 1,562,000 units sold, capturing a 9.6% share of the global market.
Among companies, Chinese firms such as BYD showed notable growth. BYD sold 4,477,944 units, an increase of 43.9% year-on-year, securing the top global market position with a 27.6% share. In second place was American company Tesla, which saw a 5.4% decrease, selling 1,988,741 units. China’s Geely Group ranked third with 1,354,541 units. The fastest growth among the top 10 was seen by China’s Chery Automobile, with sales increasing 321.7% to 524,717 units. In contrast, Hyundai Motor Group’s sales dropped 3.2% to 490,000 units, maintaining its 10th position.
KAMA predicted that the market outlook could become more uncertain due to actions like former U.S. President Donald Trump’s abolishment of mandatory electric vehicle policies and major countries’ relaxation of carbon emission targets. KAMA stated, “Major global manufacturers such as Toyota, GM, and Mercedes-Benz are revisiting their electrification strategies by adjusting BEV sales targets or delaying schedules,” and emphasized the need for “stable policy support through measures like maintaining electric vehicle subsidies, temporary revival of charging fee discounts, and maintaining toll fee reductions,” noting that South Korea is the only major market to have experienced negative growth for two consecutive years.