ELECTRIC CAR MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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North America has dominated the global electric car market. The region is expected to hold 41.5% of the market share in 2024. The U.S. is home to Tesla, one of the pioneering companies in the electric vehicle space. Tesla has led the mass adoption of electric cars in the region with its affordable Model 3 sedan and higher-end Model S and Model X vehicles. This has inspired other major automakers like Ford, GM, and Volkswagen to introduce their own electric car lineups in the U.S. electric car market. The presence of companies like Tesla and new offerings from traditional manufacturers have driven electric car sales quite significantly in the U.S. and Canada. North America also has a well-established charging infrastructure network owing to the early focus on EVs, making it easier for consumers to own electric vehicles.

For instance, In May 2023, Volkswagen Group, one of the world's largest automakers, announced a partnership with Electrify America, a subsidiary of Volkswagen dedicated to building electric vehicle charging infrastructure in the U.S. This collaboration aims to enhance the charging experience for Volkswagen EV owners by expanding the Electrify America network and integrating advanced technologies like Plug&Charge into Volkswagen's ID.4 electric SUV starting in early 2024.

At the same time, the Asia Pacific region, especially China, is emerging as the fastest growing market for electric cars globally. The Chinese government has implemented strong regulations and policies to promote eco-friendly vehicles. Substantial subsidies are provided to buyers of electric cars, while production of such vehicles is encouraged through tax incentives for manufacturers. This supportive regulatory environment has led to massive investments by global automakers in China's EV industry. Companies have also localized their electric vehicle production in China to cater to the strong and increasing domestic demand. Furthermore, China dominating the battery manufacturing industry globally has made it a lucrative hub for electric car production. Hence, with its large automobile industry and policy push, China holds tremendous potential for further growth in the electric car segment.