POLICY CHANGES AND ECONOMIC FACTORS & THE GLOBAL ELECTRIC VEHICLE MARKET

 In 2024, the global Electric Vehicle (EV) market experienced substantial growth, with sales estimated to exceed 17 million units—a notable increase compared to the previous year. China solidified its position as a leader, reporting approximately 11 million EVs sold, representing a significant year-on-year growth of around 35%. North America (United States and Canada) contributed 1.8 million sales, reflecting a steady 9% increase. Meanwhile, Europe (including EU, EFTA, and UK) saw EV sales stabilize at around 3 million units, marking a slight decline compared to 2023.

The U.S. EV market saw impressive growth in 2024, with sales exceeding 1.3 million units. Market share for EVs averaged around 8% throughout the year, peaking at 10.5% in December due to a surge in late-year sales. Tesla retained its leadership position with a 48% market share, followed by Ford (7.5%), Chevrolet (5.2%), and Hyundai (4.7%).

However, Tesla's growth faced challenges, including a decline in brand perception linked to CEO Elon Musk's political involvement, which led to protests and boycotts in some markets. Despite these hurdles, Tesla's dominance in the EV sector remained strong, driven by its established reputation and product lineup. Experts attribute the late-year sales surge partly to buyers rushing to purchase EVs ahead of anticipated policy changes under the Trump administration.

Nevertheless, Tesla's sales have dropped significantly in key markets like Germany, France, and Norway, with declines ranging from 42% to 70% in early 2025. This is despite overall EV sales rising in the region.

Also. Tesla's market share in the U.S. EV market was approximately 43.4% in Q1 2025, but sales were down by about 9% compared to Q1 2024.

Globally, Tesla delivered around 336,681 vehicles in Q1 2025, which represents a 13% decline compared to the same period in 2024.

Meanwhile, other brands such as Ford, Hyundai, and General Motors reported gains.

Growth projections for the global battery electric vehicle (BEV) market vary significantly across regions, shaped by policy shifts and economic factors. S&P Global Mobility forecasts a 30% increase in global BEV sales in 2025, reaching approximately 15.1 million units.

By 2030, BEVs are expected to account for 44.8% of all light-vehicle sales, with this figure rising to 69.4% by 2035. However, growth in certain regions may slow due to reduced incentives and higher tariffs, which could impact consumer adoption rates

With President Trump's tariff policies, the U.S. EV market could substantially alter. Tariffs would lead to higher production costs as EVs generally rely on global supply chains. This could, in turn, increase the cost of cars and compel consumers towards used or gas vehicles, slowing down EV adoption. Importantly, popular EVs like the Ford Mustang Mach-E, Chevrolet Equinox EV, and Honda Prologue, assembled in Mexico, could face immediate 25% tariffs and the same holds true for production in  Canada’s by Chrysler, Toyota, Honda and GM.

Furthermore, the unpredictability of tariff implementation poses significant challenges for automakers operating on multi-year timelines, potentially delaying investments in EV production.

 Despite a record-setting year in EV sales in 2024 and the forecasted global growth of 30% in 2025, the U.S. market may experience a deceleration in adoption due to the adverse effects of proposed tariffs introduced under the Trump administration.

While these tariffs could bolster domestic manufacturers, they are likely to affect affordability, disrupt supply chains, and reduce the pressure on automakers to transition to EVs.

Collectively, these factors may hinder the U.S.'s shift to e-mobility compared to the rest of the world.

 SP

“For information purposes only”

Mining news- www.minestockers.com

(disclosure- the writer is a shareholder in minestockers.com)

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