How EV Market Trends are Reshaping the Automotive Industry
The more people become aware of climate change, the more they try to come up with solutions. The mass production trend of electric vehicles (EVs) is part of this. Apart from being an affordable alternative to private vehicles, EVs are also proving to be safer than fuel-powered vehicles.
Although EVs have been around for a long time (the 1800s), their popularity only began in the last few decades. This is mainly because of sustainability awareness, improved safety, and lower costs.
In this blog, we will see how EV market trends emerged in the automotive industry and the impact they’ve had since.
Overview of Emerging EV Market Trends
The EV revenue market will go up to USD 786.2 billion[1] worldwide by the end of 2024. Their sales will only keep increasing till 2029, up to USD 1,084.0 billion. EVs have seen major improvements in performance, range, and cost. However, the biggest contributing factor to the increase in EV sales is the advancements in batteries. TThe new lithium-ion batteries have a longer lifespan than lead-acid batteries.
The rise in EV charging stations is reducing range anxiety, a key barrier to EV adoption. As charging stations become more common, more consumers are choosing EVs. AI is also improving the EV market by personalising infotainment and adding features like augmented reality for proximity, mapping, and lane switching. This has made driving a lot safer.
Impact of EVs on Traditional Automotive Manufacturing
The increase in EV demand has motivated traditional manufacturers to follow the trend. Automotive companies have more opportunities to use their own technology in EVs. This is part of the reason why technologically rich brands like Porsche have started creating their own electric vehicles.
According to JP Morgan[2], by 2025, 30% of cars sold are going to be electric or hybrid. This will encourage more manufacturers to design their own EVs. Let’s see how EVs have made an impact on manufacturers in the past:
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Tesla
Tesla has had a huge impact on EVs and traditional automotive manufacturing. Starting in 2008 with their Tesla Roadster, they managed to bust every myth about EVs—from range anxiety to speed limitations. Tesla's advanced technology proved that performance and speed were both unaffected by an electric motor.
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Audi
EVs are making such a big impact that luxury brands like Audi are joining the trend. They launched their all-electric vehicle, the Audi Q8 e-tron, in 2023. They promise a 10% to up to 80% charging time in 31 min at maximum DC charging power. It can also go above 500 km on one charge.
Although the Q8 e-tron was launched in 2023, Audi’s first EV was manufactured in 2019. However, the Q8 e-tron has set a standard for luxury EVs, showcasing both performance and innovation.
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Harley Davidson
Vehicle electrification has affected motorcycles as well. Harley Davidson launched LiveWire, its electric division, which became independent in 2021. In India, electric motorcycles like the Revolt RV400 have come out.
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Indian Mopeds/Scooters
The Indian market has been skyrocketing in terms of the electric scooter department. 2024 saw a sale of 1 million EV scooter[3] units. Ather, Ola, Hero, TVS, and Bajaj have been changing the EV two-wheeler (EV2W) market. They come at cost-efficient prices and have a speed of over 80 km/h.
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Space Travel
NASA's Perseverance rover on Mars and China's Yutu-2 on the Moon are basically EVs. They run on advanced batteries designed to bear harsh temperatures and environments. Rovers depend on high-efficiency solar panels and high-energy batteries to perform their tasks. They store power to keep the rovers moving and operating their instruments.
4 Technological Innovations Driving the EV Revolution
The EV revolution has been strong due to advancements like longer-range batteries and personalised infotainment. Let’s look at factors that have brought high demand for EVs.
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Electric Motors and Battery Packs
New batteries, like solid-state and graphene-based ones, are becoming standard in EVs because of their longer life. Sodium-ion batteries are among the most advanced now. The power electronics controller is a component that controls energy from the battery. It controls the motor's speed and torque.
Electric motors run on electricity, so they don’t produce tailpipe pollution or use fuel tech like pumps or tanks. This helps reduce global carbon emissions.
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AI for User Experience
AI is changing how people use electric vehicles (EVs). Companies add AI systems, sensors, and data tools to improve self-driving. These features make driving safer and route mapping smarter, all while connecting cars to their surroundings.
AI even personalises the driving experience based on driver habits. Modern cars have advanced features for safety, like the Toyota Prius, which has assisted parallel parking with sensors. Hyundai added biometric scans, while luxury brands use facial recognition to set preferences.
AI dashcams can predict speed, record accidents, and detect a sleeping driver. Crash testing simulators use AI to improve safety features.
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Charging Stations
Business opportunities in EV charging stations are growing by the day. Smart chargers now use AI to manage energy grids and save money. High-speed DC chargers make charging faster, and wireless charging may eliminate the need for cables. These changes make EVs easier to use.
In India, the government and private companies are building stations in cities, on highways, and in rural areas. This makes charging easier for EV owners. Fast charging and battery swapping speed up the process.
Recently, CATL in China launched the Shenxing Plus battery, which showed a range of 370 miles (600 km) in 10 minutes, which is a big step for batteries.
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Formula E
Formula E is a testing ground for new EV technology. Unlike regular EVs that use slower AC charging for longer range, Formula E focuses on ultra-fast DC charging to reach high speeds. Immersion cooling is another breakthrough. It uses dielectric fluid to keep batteries cool so they can perform better. The EV industry growth can benefit from these race cars and improve everyday EVs, too.
Changing Consumer Preferences in the EV Era
Range anxiety is the fear that an electric vehicle will run out of battery before reaching a charging station. The charging infrastructure keeps improving, with governments and private companies setting up more stations.
Consumers are becoming more aware of the environmental impact of fossil fuels. To reduce carbon emissions, people are choosing sustainable options like EVs. Apart from their environmental benefits, EVs are also affordable in the long run. EV charging might increase your electricity bill, but it is still cheaper than the cost of gas, especially as fuel prices are volatile and continue to increase.
Since luxury brands entered the EV market, the classic EV design has been changing to a more aesthetically pleasing one. EVs are being designed to look sleek, to bridge the difference between luxurious designs and the natural EV look we’re used to.
Policy and Sustainability Shaping EV Market Trends
Governments, companies, and startups are investing heavily in charging infrastructure to support the growing electric vehicle market. This investment is making EVs popular.
Governments are also making policies and offering tax breaks and subsidies for EV drivers. Many areas are setting emission rules to encourage EV driving. For instance, 80% of new cars and 70% of new vans sold in the UK will have zero emissions by 2030, with the goal of reaching 100% by 2035.
Electric buses, trams, and trains have also become common in many areas, offering cleaner and quieter public transportation alternatives. They give cleaner and quieter public transport options that reduce air and noise pollution, thus lowering costs.
Future Predictions for the Automotive Industry in an EV World
The goal of the electric vehicle industry is to achieve fully sustainable transport. Tech giants are working towards an autonomous future where robotaxis could reduce accidents. With higher demand leading to higher production, the future will see lower battery and motor costs, which will make EVs more affordable. The number of electric vehicles (excluding EV2W) will reach 525 million by 2035. In the coming years, more than one in four vehicles on the road will be electric. EVs in India and Indonesia will increase revenue by a lot between 2025 and 2030.
How GrowthJockey Helps Businesses with EV Market Trends
At GrowthJockey, we aim to help boost the electric mobility sector. Our team’s expertise spans across the automobile industry, especially electric scooters and e-rickshaws.
From checking electric scooter models to understanding the latest e-rickshaw features and prices, we share the necessary insights to grow your business. With the rising need for affordable and green EVs, we are here to help you meet the demand. Our team will help strategise the growth of your EV business.
Contact us today to discover your EV business’s full potential and create tailored solutions for a sustainable future.
FAQs
1. What is the future of the EV market?
EV market trends have a bright future, with 525 million[4] EVs to be sold by 2035. New battery tech, self-driving features, and eco-friendly policies will make EVs the norm. Lower costs and environmental awareness will change people’s preferences.
2. What is the current state of the EV market?
Although the EV market saw some dips in the electric vehicle industry's growth rate of revenue this year, it is still experiencing steady growth.
Global revenue is set to hit USD 786.2 billion in 2024. Better batteries, charging stations, and AI features are driving this growth. Many carmakers are shifting focus to EVs, making them a popular choice for people.
3. What is the EV market trend in India?
India’s EV market is huge, especially for two-wheelers. Over 1 million electric scooters were sold in 2024. Companies like Ola and Hero offer affordable options, while the government builds more charging stations. India is becoming a global leader in the EV sector.
4. Will EVs be cheaper in the future?
Yes, EVs will cost less as production grows and batteries get cheaper. New battery types, like sodium-ion, will help reduce prices. Government tax cuts and competition among brands will also make EVs more affordable for everyone.
5. Are EV sales declining?
No, EV sales are rising. By 2025, 30% of all cars sold will be electric or hybrid. Better range, lower costs, and more charging options are increasing sales in the world. The trend shows strong growth, not decline.
While sales are not declining, the electric vehicle industry's growth rate of sales slowed down this year from 60% in 2022 to 33% in 2023[5].
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