Global EV Market Sees Uneven Growth In First Half Of 2024 With Europe Lagging Behind

The global electric vehicle (EV) market has experienced mixed growth in the first half of 2024, with Europe notably underperforming compared to other major regions.

According to a recent report by Rho Motion, global EV sales reached nearly 7 million units in the first six months of 2024, scoring a 20% jump from the same period last year. Yet, regional disparities in growth rates have become increasingly apparent.

The stand-out performer is China, which emerged as the fastest-growing market with EV sales climbing up by 30% year-over-year to reach 4.1 million units. As for the United States (U.S.) and Canada, they saw a moderate 10% growth, while Europe’s EV market stagnated with only a 1% increase.

Charles Lester, Lead EV Data Analyst at Rho Motion, expressed on the findings stating, “The global EV market can take comfort in the 20% growth shown in the first half of the year, but the regional disparities are quite remarkable. Europe’s 1% growth compared to China’s 30% needs swift course correction if targets are to be met in the Western region.”

Particularly, the situation varies by country in Europe. While France and the United Kingdom (UK) experienced growth of 8% and 13% respectively, Germany, saw a 9% decline in EV sales despite being the region’s largest market. Interestingly, Italy, despite setting a record for EV sales in June following the release of new incentives, has seen an overall 11% drop in sales this year.

The report also highlighted a resurgence in plug-in hybrid electric vehicles (PHEVs), which now account for 35% of global EV sales. This trend is particularly pronounced in China, where PHEVs have increased their market share by 8 percentage points to 41% in 2024.

Global Battery Demand

Battery demand has also grown significantly, surpassing 510GWh across all end-use markets in the first half of 2024, a 23% increase from last year. The EV industry accounts for 72% of this demand and the stationary storage market has shown the strongest year-on-year growth at nearly 50%.

Iola Hughes, Head of Research at Rho Motion, noted this growth saying, “Amongst so much battery market negativity, the real upside of the year is the stationary storage market which is growing faster than the EV battery market.”

Furthermore, it was also revealed that challenges for some battery producers particularly LG Energy Solution, SK On, and Panasonic all experienced declines in EV battery deployments compared to the first half of 2023, while Chinese battery producers generally fared better.

Given these trends, Rho Motion has adjusted its forecast for 2024. Now, it projects total EV sales of 16.6 million units. This resulting cuts down by 5% compared to earlier estimates.

As a result, potential buyers are starting to lean towards EVs as more models emerge with EV technology advancing to enhance the EV ownership experience. With sales rising and battery demand for EVs also increase, overall demand has certainly risen globally.

Read More: Study Finds Consideration Of EV Purchases To Surge In Second Half Of Decade

As the EV industry grows annually with more models getting better in sales figures, eyes will be on the European market to see if it can regain momentum and whether the current growth patterns in China and North America will persist through the second half of the year.

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