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Battery Electric Vehicles Surge in Global Popularity, But US Faces Inventory Challenges

Published: 1.3.2024

Key Takeaways: 

          • Global BEV sales are booming, projected to reach 10 million units in 2023. 

          • China dominates with a 58% market share, while the US and Europe are catching up. 

          • US automakers face an inventory glut, raising concerns about price adjustments. 

          • The EV revolution presents significant opportunities for various industries. 

The global battery electric vehicle (BEV) market is roaring ahead, with sales surging 29% year-over-year in Q3 2023 and projected to reach nearly 10 million units by year's end, according to Counterpoint Research. This electrifying growth is driven by several factors, including rising fuel costs, increasing government incentives, and expanding EV model choices. 

However, the US market, while experiencing its boom with over 60% annual growth, faces a unique challenge: an inventory glut. US automakers, eager to capitalize on the EV wave, have ramped up production, but demand hasn't quite caught up. This has led to a stockpile of unsold vehicles, raising concerns about potential price adjustments and market saturation. 

Despite this bump in the road, the overall picture remains bright for EVs. China continues to dominate with a 58% market share, fueled by its massive domestic demand and supportive government policies. The US, with its 12% share, is a distant second but rapidly closing the gap. Europe, led by Germany's impressive 60% annual growth, is also emerging as a major player. 

“Despite falling short of initial hopes, global BEV sales are set to hit a staggering 10 million in 2023, with the US exceeding 50% year-over-year growth. This surge is fueled by falling battery costs, new chemistries, and strategic investments in securing vital minerals, reducing dependence on China.” claims Research Director Jeff Fieldhack. 

This global EV surge presents a plethora of opportunities for automakers, battery manufacturers, charging infrastructure providers, and related businesses. As competition heats up, expect to see even more innovative and affordable EV models hitting the market, making the electric dream a reality for more drivers than ever before. 

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