China's electric vehicle (EV) market has witnessed astonishing growth, achieving dominance with 76% of the global market share by October 2024. This growth occurred even amid trade tensions and tariffs from Western countries aimed at stifling Chinese EV exports. According to reports from the China Passenger Car Association, approximately 14.1 million electric vehicles sold within the first ten months of the year, with domestic sales accounting for 69% of this figure. This suggests strong local demand is propelling the expansion of the industry.
Despite the increased difficulties for exporting vehicles to Western nations, the domestic market continues to flourish, as highlighted by the International Energy Agency. Nearly 60% of new electric vehicle registrations made this year were undertaken in China, establishing the country as both the leading producer and consumer of EVs. While the principal markets for EVs dwindle to three regions – China, the EU, and the US – it becomes evident where the focus lies.
Trade measures taken by the Biden administration, which increased tariffs on Chinese electric vehicles to 100%, alongside the EU imposing rates of up to 35%, exemplify the hurdles facing Chinese manufacturers. Nevertheless, the influence of domestic policies remains strong. The Chinese government has doubled subsidies to encourage EV purchases, offering up to ¥20,000 (around €2,600) to buyers who trade in conventional gas-powered vehicles. Tesla has capitalized on this continuous momentum, experiencing sales growth of 7% during the third quarter of 2024.
Meanwhile, as exports to the US falter – decreasing by 23% – there has been notable growth in Chinese vehicle sales to Russia, surging by 109% over the past two years. This pivot shifts the focus away from the West, emphasizing the shifting dynamics of the global EV market.
Transitioning gears to the Indian EV market, the latest figures indicate fluctuates with Tata Motors, India's leading EV manufacturer, facing some stiff competition as MG Motor's market share climbed significantly. November 2024 saw Tata Motors selling around 4,196 units, marking an 18% decline year-on-year and reducing its market share from 68% to 49% as competitors ramped up their tactics. Early projections had placed the market leader with green flags, but the tides are changing.
Despite sluggishness, the entire Indian EV industry managed to sell 8,596 units – still 14% higher than the previous year’s figures. For perspective, just one month before, October 2024 recorded high sales, marking 11,165 sold units, igniting hopes for sustained growth. The local EV sales appear to be taking one step forward, two steps back within the year.
Tata Motors, which boasts the most extensive EV lineup with models like Nexon, Tigor, and Punch, has been proactive, increasing its footprint with diverse offerings to maintain customer interest. They also entice buyers with offers such as six months of free charging at Tata Power's extensive network across the country.
MG Motor gained traction with its new models, capitalizing on their Battery-as-a-Service (BaaS) initiative, which has become increasingly popular. By allowing customers to pay for battery usage and maintain low initial costs, MG aims to address concerns over ownership costs. The company sold 3,126 units in November, catapulting its market share from 13% the previous year to 36% this current November. Such gains have been made possible with strategic expansions and innovative product pricing, proving they are here to compete fiercely.
Mahindra, the third player, sold about 547 units of the XUV400, slightly up from 542 units the previous year, holding onto 6% of the market. They've recently launched electric SUVs under the Born Electric range, aiming for significant growth within the EV space as they prepare for new product rollouts.
A notable competitor from China, BYD, sold 326 units, achieving growth of 133% year-over-year. With plans for aggressive expansion and new model introductions, BYD could shake up the Indian market significantly if it carries through with expectations for entry-level and midsize SUVs slated for launch during 2025.
While electric vehicles are rapidly gaining traction across different geographic landscapes, the fluctuations within each market reflect larger narratives at play – global economic shifts, local preferences, and government policies. From the dazzling heights of China's dominance to the competitive skirmishes within India's marketplace, the electric vehicle sector seems to be on the off-ramp from traditional methods of transport toward new age solutions for mobility. It’s clear the future of travel has sparked, and the race for dominance is hotter than ever, with all eyes on China and the rapid evolutions occurring globally.