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Electric Vehicle Demand Continues to Surge Despite Negative Reports

In the bustling hub of COP28 in Dubai, BloombergNEF’s annual zero-emission vehicle fact book illuminates the accelerating journey toward a greener road transport landscape. Here are the compelling narratives shaping the current state of the global EV market:

No Signs of EV Slowdown

Contrary to recent speculations, the world of electric vehicles is not witnessing a slowdown. The sales of passenger EVs are set to reach a remarkable 14 million this year, indicating a robust 36% increase from 2022. Even in the United States, where concerns about demand surfaced, sales are expected to surge by a substantial 50%. Rather than a waning interest, this growth signifies a paradigm shift in the market, filtering out players less competitive in this evolving landscape.

Emerging Market Momentum

Rapid strides in EV adoption are evident in emerging economies like India, Thailand, and Indonesia. With low-cost models spearheading the charge, Thailand boasts an impressive nine percent EV market share, aligning with the United States’ pace of adoption. The market anticipates further expansion with the introduction of more affordable models, potentially propelling continuous growth.

Influence of the Inflation Reduction Act

The Inflation Reduction Act (IRA) has triggered a remarkable wave of investment, driving an astounding $100 billion into EV and battery manufacturing. This monumental investment lays the groundwork for operational facilities slated to commence operations by late 2024, primarily benefiting the US, Canada, and Mexico.

Stalled Progress in Combustion Vehicle Phaseouts

Despite initial fervor, commitments to phase out new combustion vehicle sales have stagnated since 2021. Presently, only a small fraction (19%) of new passenger-vehicle sales align with these commitments, underscoring the challenges in translating targets into tangible outcomes.

Automaker Shifts and Commitments

Several automakers previously pledged net-zero commitments, encompassing over half of the global passenger-vehicle sales. However, the absence of new commitments in 2023 and the revision of near-term EV targets by entities like Ford and General Motors hint at market adjustments due to demand realities.

Electric vehicles remain a dynamic force in the ongoing energy transition. While optimism prevails, sustained momentum will necessitate concerted efforts from policymakers and automakers to drive the EV revolution forward in the years ahead.

Source: BNEF.

Author: Madison Cates

Title: Managing Editor


Research journalist, Freelance writer, Managing editor

  • Expertise: automotive content, trending topics.
  • Education: LeTourneau University, Bachelors of Science in Business Administration.
  • Over 400 articles and short news pieces published across the web.

Experience: Madison Cates is a journalist located in the great state of Texas. She began writing over eight years ago. Her first major research piece was published by the Journal of Business and Economics in 2018. After growing up in a household of eight brothers and a dad who was always restoring old Camaros, she naturally pivoted her freelance career into the automotive industry. There, she found her passion. Her experience paved the way for her to work with multiple large corporations in automotive news and trending topics. Now, she now finds her home at Wealth of Geeks where she proudly serves as Managing Editor of Autos. Madison is always down to geek out over the latest beautiful cars on the market, and she enjoys providing her readers with tips to make car ownership easier and more enjoyable.

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