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Press release
07 Jun 2024
EV sales stall in US and Europe as market uncertainty persists – EY Analysis
- Battery electric vehicles will account for more than 50% of total sales in China by the end of this decade – two years faster than previous forecasts
- US EV demand and sales plateauing due to affordability concerns, lack of infrastructure and a short-term shift towards hybrids
- Europe’s EV sales slowing due to reductions in EV incentives, lack of affordable EV models, and consumer concerns about insufficient chargers
The US and Europe are expected to see slowing electric vehicle (EV) demand and sales in the near-term while China is set to experience steady growth, according to the latest EY Mobility Lens Forecaster, an artificial intelligence (AI) -powered forecasting tool that provides an outlook for volumes of light vehicle registrations through to 2050.
In the US, high interest rates, inadequate charging infrastructure and uncertain economic conditions have fueled affordability and range concerns, resulting in a slowdown in EV sales, although this is expected to plateau in the near-term. Europe is being impacted by high prices, economic uncertainty and inadequate infrastructure, slowing electric vehicle (EV) adoption. While other parts of the world are experiencing an EV slowdown, China remains on course for growth with battery electric vehicle (BEV) set to make up more than 50% of all sales by 2030 – two years faster than previously suggested by forecasts. Despite the current EV sales slowdown in the US and Europe, long-term forecasts remain unchanged with an expectation of BEVs making up 50% of sales by 2030 in Europe and 2033 in the US.
Despite delayed government targets and uncertainty about EV policies beyond the forthcoming US presidential election, the optimistic forecast for the US sees more locally produced EVs pushing up sales, which would be supported by import restrictions of non-US manufactured products. Equally, the forecast shows that Chinese automakers will have to face a tightening of trade policies by the EU and US imposing stricter sanctions on EV imports, which would result in a decline in Chinese export sales. In this scenario, Chinese EV manufacturers will have to deal with high tariff barriers and would have to reassess and adapt their EV expansion strategies.
The EV market in the US and Europe is facing challenges with affordability and infrastructure, while China's supportive policies are driving growth, as highlighted in the EY Analysis. While keeping an eye open on our local market, recent sources indicate that Romania's EV sector has seen a significant increase in 2023 and continues to expand in 2024, fueled by government incentives like the Rabla Plus program and a swiftly growing charging network with over 1,000 locations. Significant investments from companies such as OMV Petrom and Enel X are improving this infrastructure. Technological advances have pushed EV driving ranges to 250-600 km, making them increasingly competitive in price with traditional cars.
Stela Andrei
Partner | People Advisory Services