INDUSTRY REPORT demonstrated substantial growth across various regions in recent years , a trend that has persisted into 2023 and is expected to continue in 2024 . Notably , China stands out as the dominant market in the passenger vehicle segment with other significant markets including the USA , India , Japan and Germany ,” commented the analyst .
“ Within the realm of passenger vehicles , prominent original equipment manufacturers ( OEMs ) include Toyota ; GM ; Stellantis ; Honda ; Volkswagen ; Nissan ; BMW ; Daimler ; Tesla and Ford . Tesla ; BYD ; Volkswagen ; SAIC and Stellantis stand out as key players in the electric passenger vehicle sector . Shifting the focus to commercial vehicles in 2023 , the leading OEMs encompass Mercedes-Benz ; Tata Motors ; Traton ; Paccar ; Volvo ; IVECO ; Ashok Leyland and Hino ,” it added .
The Volvo EM90 fully electric MPV .
Key automotive developments in 2023
1 . The electric vehicles ( EV ) market was impacted by price cuts ; increases in labour costs ; production cuts and the rise in interest rates .
2 . While the industry talks about electrification , the fossil fuel powertrains ( i . e . ICE vehicles ) continued to maintain healthy sales volumes .
3 . Chinese OEMs and EV models are making significant inroads into the European EV market . Chinese automakers ’ share of the Western European EV market has risen to 8-10 %, up from 5-7 % in 2022 .
4 . More collaborations between OEMs and tech companies are likely to drive innovation and growth in the automotive industry . For instance , in September 2023 , Qualcomm Technologies , Inc . ( US ) collaborated with Mercedes-Benz AG to power vehicles with snapdragon digital chassis solutions .
( Courtesy of Markets and Markets )
An eye on electric vehicles
“ While electric vehicle ( EV ) sales are on the rise across most markets , the pace of growth is decelerating . Although global sales volumes are projected to increase from 12-14 million units in 2023 to 15 to 17- million units in 2024 , the surge is showing signs of plateauing . China is anticipated to contribute the largest share , reaching approximately 9 to 10 million units in 2024 . However , the overall growth trajectory is slowing down . For instance , in the United States , the year-on-year growth of EV sales is expected to be a modest 15-20 %, a notable
Mercedes-Benz eCitan in the small van sector . decrease from the 55-60 % observed in 2023 . In China , the growth is also anticipated to be impacted by a reduction in incentives ,” outlined the report .
“ The slowdown in EV sales has prompted original equipment manufacturers ( OEMs ) to make strategic adjustments including production cuts ( e . g . GM and VW ), delayed model launches ( e . g . AUDI and Ford ) and the temporary halt of plans for new EV plants ( e . g . Ford ). In contrast to battery electric vehicles ( BEVs ), plug-in hybrid electric vehicles ( PHEVs ) are experiencing stronger sales growth . With reduced upfront costs , a lower total cost of ownership compared to internal combustion engine ( ICE ) vehicles and the added benefit of flexibility ( addressing range anxiety ), PHEVs are emerging as a more compelling
FCEVs are being used for urban logistics applications , such as waste collection and last-mile delivery
choice for consumers ,” it continued . According to its new research report ‘ Electric Light Commercial Vehicle Market - Global Forecast 2030 ’, the analyst expects the global electric light commercial vehicle market size to grow at a CAGR of 36.1 % over the forecast period .
Factors such as rising demand for zero-emissions commuting and government support for low-emission vehicles through subsidies and tax breaks have resulted in automakers embracing EVs and the expansion of the electric light commercial vehicle market . Government bodies are supporting zero-emission vehicles over petrol or diesel automobiles due to growing worries about increased pollution by the automotive industry .
Many have acknowledged the importance of promoting zero-emission vehicles to prevent pollution . Government agencies in several countries are proposing attractive plans and incentives to entice and encourage individuals to acquire ELCVs such as substantial discounts , reduction in taxes , lower road charges for zero-emission vehicles and others .
“ E-pickup trucks are expected to grow at the fastest rate during the forecast period . Electric pickup trucks are generally more costeffective to operate and maintain compared to traditional gasoline / petrol-powered pickup trucks . Their lower fuel costs and reduced maintenance requirements can lead to significant savings for businesses and consumers over time . Battery technology is continuously improving , resulting in batteries with higher energy density , enabling electric pickup trucks to travel longer distances on a single charge ,” said the report .
“ The FCEV segment is expected to grow at significant growth rate during the forecast period . FCEVs are being used for urban logistics applications , such as waste collection and last-mile delivery . This is due to their zero emissions and quiet operation , which makes them ideal for
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