The global EV sector is undergoing a period of reassessment as it appears that Western markets have failed to adopt battery electric vehicles (BEVs) as originally expected and planned.
In a webinar titled Electric Vehicle Outlook 2025, hosted by Power Technology’s parent company, GlobalData, industry experts reviewed the outlook for the global electric vehicle (EV) market, offering insights into the recent realignment of the world’s automotive landscape.
According to GlobalData, global demand for battery-light EVs slowed down in 2024. Low-voltage BEV sales rose by 14% in 2024, less than half the 30% growth seen in 2023.
Europe was the worst-affected region with only 0.9% growth in BEV sales last year, with several European original equipment manufacturers announcing workforce reductions, plant closures and alterations to their road maps.
The biggest contributor to the continent’s poor performance was the de-growth of -27% seen in global automotive giant Germany due to the halt in EV subsidies announced in December 2023.
However, despite this blip in the road for Germany, GlobalData reported that Europe looks set to return to growth in 2025 following a flat year.
In 2024, the US also experienced relatively low growth (6.5%) in EV sales from the previous year, after registering a nearly 50% increase year-on-year in 2023.
However, unlike Europe, GlobalData forecasts that the US market may struggle to bounce back this year due to President Donald Trump seeking to end federal support for EVs. Although a complete abandonment of support for the industry is unlikely, as billions of dollars of investment has already been made into battery manufacturing and increased EV adoption, Trump’s opposition is likely to have a negative impact.
GlobalData predicts that by 2030, EV sales in the US will be down 15% from current levels.
Beyond the US, the global EV market is “heavily influenced by the policies of Donald Trump and the US” and may “start to see the fallout of this” in 2025, GlobalData power sector research and analysis head Harminder Singh stated in the webinar.
China, on the other hand, has stayed clear of the uncertainty that has descended on Western markets, thanks to favourable policies and incentives. The Chinese EV market recorded growth of 18% in 2024 – the smallest reduction in growth last year – reaching 6.4 million sales units, and is expected to reach 12.6 million sales by 2035.
The Asian nation remains the largest EV market in the world.
“China’s scrappage incentive and new energy vehicle (NEV) tax exemption are expected to benefit NEV sales in 2025,” Singh added.
