EV sales declining globally even as Indian market witnessing growth

New Delhi, May 23: The growth rate of sales of electric vehicles is slowing worldwide, as noted by Goldman Sachs, an investment management firm in its recent article.

The firm highlighted reasons of slugish growth rate in EV sales, adding that capital costs, uncertainty of elections, and a shortage of rapid-charging stations are the prominant reasons behind the contraction in the growth rate of EV sales.

According to sales data analyzed by Kelley Blue Book, a vehicle valuation and automotive research company, Americans purchased over 2 lakh new electric vehicles in the first quarter of 2024. In Q1, EV sales as a percentage of all new car sales were 7.3 percent, down from Q4 2023.

While annual EV sales continue to grow, the growth rate has notably slowed.

Sales decreased 15.2 percent from Q4 2023 but increased 2.6 percent year over year in Q1. Last quarter's gain was significantly less than that of the prior two years, as the as the research company cited above noted.

Similarly, new car sales in Europe dropped in March for the first time this year due to a drop in EV registrations and the timing of the Easter holidays, as the European Automobile Manufacturers' Association (ACEA highlighted in a recent report.

In the European Union (EU), sales of new electric vehicles fell by 11.3 percent to 134,397 units in March. This reduction was mostly caused by a 29 percent decrease in EV sales in Germany, the largest market in Europe.

Amid the slugish EV demand, sales of hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) are accelerating. Over the last few months, growth in the US has exceeded EVs, as the article claimed.

What is Heppening in India?

India continues to witness a surge in sales of EVs as the market registered a significant uptick in sales, crossing 1.7 million units in the fiscal year 2024, according to a report by JMK Research & Analytics.