Auto Industry Trends: Electric Vehicles Sales May Boom or Crash in 2024

By Shubhendra Anand , 25 April, 2024

The automotive industry follows different trends since the beginning of 2024. The automotive industry has experienced many issues in the past two years due to the insufficiency of raw materials and disruptions in the supply chain. However, the sector expects stability in the automotive market throughout 2024.

In 2023, the global automotive industry suffered with fewer vehicles in production. It was due to supply chain disruptions and the lower availability of semiconductors. Thus, the automotive sector anticipates many new trends due to the fluctuating markets of 2024. The clean energy transition also focuses on increasing the production of electric vehicles, as the phenomenon targets reducing emissions by a certain amount by the end of 2050, which will impact sustainable development. Electric cars are gaining momentum with the growing adoption of clean energy transitions. However,  the automotive sector lacks the infrastructure to support the growth of electric cars at a faster pace. There are many hurdles in adopting electric vehicles, like the lack of charging stations, specific rules in different economies, high prices of electric cars, and many others. Therefore, auto companies are limiting the production of electric vehicles for 2024.

OEM (original equipment manufacturers) and aftermarket companies are moving forward with the above trends in 2024. According to a survey conducted for 2024, the vehicle market tends to grow by 5 percent throughout 2024. The overall situation of the automotive market anticipates increasing at 80-85 percent capacity to yield profit in 2024. However, internal combustion engine (ICE) vehicles are expected to get a firm hold of the market compared to battery electric vehicles (BEV). 

The high price rate of BEVs compared to ICEs distracts consumers. Still, studies challenge that electric vehicle sales will be 10 percent of the United States motor vehicle sales in 2024. Considering the case of electric vehicles growth in 2024, there are several factors contributing to making it happen- the cost of electric vehicles is expected to come down with affordable battery alternatives, with giga casting that assembles the vehicle parts by reducing the cost of complexities to build the whole model; and softening specific government rules and regulations to buy electric vehicles that suits the nation's economy. Therefore, the global automotive industries anticipate growth in 2024 depending upon the type of vehicle and consumers' acceptance of it.

Global Electric Vehicle Sales in 2024