The electric vehicle (EV) industry continues to experience robust growth, driven by increasing demand, favorable government policies, and declining battery prices. Recent market movements indicate a significant shift towards electrification, with electric cars accounting for 18% of all cars sold in 2023, up from 14% in 2022 and only 2% in 2018[2][5].

In the United States, the share of electric and hybrid vehicle sales increased in the second quarter of 2024, reaching 18.7% of total new light-duty vehicle sales, up from 17.8% in the first quarter[1]. Luxury electric vehicles, in particular, performed well, accounting for 32.8% of total luxury sales in 2Q24.

Globally, electric car sales grew by around 25% in the first quarter of 2024 compared to the same period in 2023, with China leading the way, selling about half a million more electric cars than in the first quarter of 2023[2][5]. The Asia Pacific region held a significant market share of 51.24% in 2023, with China dominating the market in terms of sales volume[3].

The industry has seen significant investments from major players, including Daimler AG, Ford Motor Company, BYD, and Renault Group, which are expected to drive market growth[3]. For instance, BYD announced plans to start EV production in Thailand in 2024 with a capacity of 150,000 electric vehicles per year.

Regulatory changes, such as the Inflation Reduction Act in the United States, have also played a crucial role in supporting EV sales. The revised qualifications for the Clean Vehicle Tax Credit have made some popular EV models eligible for credit, boosting sales[5].

In terms of consumer behavior, there has been a notable shift towards more affordable options, with the 151-300-mile range segment holding the maximum market share[3]. Additionally, the adoption of electric vans is gaining traction, particularly in emerging economies.

Supply chain developments have also been significant, with Chinese companies accounting for over half of the sales in Thailand and planning to start operating EV production facilities in the country[5].

Industry leaders are responding to current challenges by investing heavily in EV production and expanding their global presence. For example, Tesla, despite losing its majority share of the electric vehicle market, remains a leading manufacturer, while legacy manufacturers like Ford and Chevrolet are gaining ground with their new electric models[1].

Compared to the previous reporting period, the EV industry has shown remarkable resilience and growth, with electric car sales surpassing those of the same period in 2023 by around 25%. The industry is expected to continue its upward trajectory, driven by favorable government policies, declining battery prices, and increasing demand.