Electric Car Market is Poised to Witness Phenomenal Growth owing to...

Electric Car Market is Poised to Witness Phenomenal Growth owing to Rising Environmental Concerns

Posted 2024-09-12 13:41:54

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The Global electric car market is estimated to be valued at US$ 343.27 Bn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the electric car market are Tesla, Inc., Nissan Motor Corporation, BMW AG, Ford Motor Company, General Motors Company, Volkswagen AG, Hyundai Motor Company, Kia Corporation, Audi AG, Mercedes-Benz AG, BYD Company Limited, Rivian Automotive, Inc., Lucid Motors, Inc., Polestar Automotive Holding AB, and Volvo Cars. Tesla is currently dominating the electric car market.

Government initiatives promoting Electric Car Market Growth through subsidies and tax rebates have created lucrative opportunities for electric car manufacturers. Countries like China, U.S., Germany and U.K. are offering sizeable incentives to accelerate EV adoption.

Leading automakers are planning aggressive global expansion through new production facilities. For instance, Tesla is setting up new gigafactories in Berlin, Germany and Austin, Texas. Volkswagen aims to become the global EV leader by investing over $86 billion till 2025.

There is huge demand for electric vehicles in developing Asian markets like China, India which offers significant scope for global expansion for electric car companies over the coming years.

Market drivers
Stringent emission norms: Government policies restricting emission levels from vehicles are driving demand for zero-emission electric cars. Many countries and cities have announced plans to phase out gasoline cars.

Falling battery prices: Continuous technological advancement has led to a drop in battery prices, addressing the key challenge of high ownership costs of electric vehicles. Improved batteries have enhanced driving range as well.

Market restraints
Lack of standardization: The absence of globally synchronized standards for EV charging infrastructure is hindering widespread adoption of electric cars. Non-uniform fast charging technologies add to driver inconvenience.