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Why electric vehicle sales "could skyrocket" in 2025?

Why electric vehicle sales "could skyrocket" in 2025?

More countries are joining the "tipping point" when it comes to electric vehicle (EV) sales.

What does this mean?

A "turning point" occurs when a new technology gains enough momentum to displace its predecessor, foreign media write, Telegraph reports.


And for this it is noted that there are several reasons:

In November, India cut the tax on EVs to 5 percent, from 12 percent.

Saudi Arabia, meanwhile, announced a mandate requiring 5 percent of parking spaces to be designated for electric vehicles.

In Norway, nearly 90 percent of vehicles sold in 2024 were EVs. Pakistan also pledged to move to 30 percent electric vehicles by 2030.

In Turkey, while total vehicle sales rose just 0,5 percent, electric vehicle sales rose 45,9 percent in 2024, equivalent to more than 105,000 units, according to ODMD.

In the US, sales of electric vehicles rose 12 percent in the fourth quarter of 2024, bringing the annual total to 1.3 million units, or 8 percent of the 15.9 million total vehicle sales for the year, according to Cox Automotive.

Electric vehicle sales in Thailand reached 14 percent of the car market. The Philippines has extended zero tariffs on electric vehicles until 2028.

Overall: At least 31 countries have already reached the 5 percent threshold for annual sales of electric vehicles.

And according to Nasdaq, by 2025, sales of electric vehicles are set to "skyrocket."

In 2025, Nasdaq predicts that EVs' total share of light vehicle sales worldwide will reach 22.6 percent.

Meanwhile, by 2030, Bloomberg predicts that electric vehicles could account for over 50 percent of global car sales, thanks to battery costs and policy drivers.

Further, the firm sees the market share for EVs growing to 69.5 percent in 2035.

In this regard, several factors are mentioned.

Battery cost

The cost continues to fall. Bloomberg data shows that the average price of lithium-ion batteries has decreased by 89 percent since 2010, foreign media write, Telegraph reports.

It reached $132 per kilowatt-hour in 2023 and fell further to $112/kWh in 2024, according to Statista.

By 2026, average battery pack prices are projected to drop further to $82 per kWh – from $250 per kWh in 2016 – a 67 percent drop in price.

policies

Governments around the world are helping to accelerate the transition to EVs.

Countries such as Norway, where 90 percent of new car sales are electric, have led the way with aggressive incentives, including tax cuts and free public charging.

The EU has pledged to phase out the sale of ICE vehicles by 2035, while the US Inflation Reduction Act (IRA) provides a $7,500 tax credit for qualifying EVs.

In addition, BloombergNEF points out that China, the world's largest EV manufacturer and car market, is setting the standard with domestic production dominance, policies (subsidies) and infrastructure expansion.

However, challenges remain – including infrastructure, battery mineral resources and consumer acceptance.

However, with a combination of innovation, favorable economics and supportive policies, EVs are said to be poised to dominate global car markets. /Telegraph/