Challenging Market Conditions for Electric Vehicles

Near-term global statistics on Electric Vehicle EV) sales have prompted manufacturers and analysts to contend that the segment’s growth may not be a straight line after all.

- Jennifer Paldano Goonewardane.

Let’s admit it. Electric vehicles (EVs) were like a chic new trend in the automobile industry, a classy option over traditional internal combustion engines and a responsible choice for a socially conscious generation. With Elon Musk’s Tesla leading the way with much noise and ballyhoo towards driving a solar-electric economy, conventional vehicle manufacturers who thrived in ICE vehicles had to join the race. As always, it only took a little while for Chinese companies to leverage the future market for EVs. 

However, when electric vehicles looked to storm the highways, replacing the traditional internal combustion engines, the momentum seemed to be slowing down, at least in the near term, prompting some manufacturers to shift to a ‘build on demand’ approach.

Automakers are facing the conundrum of a slow rise in the market for EVs, a slowdown in the pace of demand, and a departure from the ooh-ha that surrounded their emergence and projected growth. Right now, there is an oversupply of EVs compared to the demand. Decreasing demand and increasing competition in the EV market are impacting the industry right now.

Some analysts disprove the doomgloom verdict for EVs, citing the slowdown to temporary glitches and short-term setbacks. At the same time, issues associated with chargers, lack of charging stations, and battery resiliency need to level out. Statista has projected EV market growth, and the revenue is estimated to reach USD 623.3 billion worldwide in 2024, accompanied by an annual growth rate of 9.82 percent.