EV market stagnates globally; hybrid vehicles gain traction: Report

As concerns over EV capital costs, uncertain government policies, and a shortage of rapid-charging stations hinder electric vehicle (EV) penetration globally, the automotive industry witnesses a shift towards hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), global investment bank Goldman Sachs said in a report. With Europe, a key driver of EV growth, experiencing stagnation since early 2024, consumers and automakers alike are turning to hybrid alternatives. This pivot reflects a growing preference for transitional technologies amidst the challenges faced by the EV market.

As HEV sales accelerate globally, manufacturers like Toyota and Honda highlight the economic benefits and higher margins associated with hybrid technologies, reinforcing their attractiveness in the market.

China's EV Market Resilient Amid Global Slowdown, Export Challenges

Despite a deceleration in electric vehicle (EV) sales globally, China's EV market remains robust, accounting for over 60 per cent of the global market share. However, escalating price competition and oversupply pose challenges, leading Chinese EV makers to explore opportunities in both domestic uptake and export markets. With excess production capacity exceeding 5 million vehicles, China aims to leverage cost advantages and supply chain expertise to expand its presence in overseas markets. Yet, regulatory barriers in key regions like the US, Europe, and India present hurdles for Chinese EV exports, underlining the complex landscape faced by manufacturers in navigating international markets, Goldman Sachs added.