Electric Revolution: Half of All Cars to Be EVs by 2035

By 2035, half of all vehicles will be electric, with India, Latin America, Japan, and Southeast Asia set for the quickest growth. While passenger vehicle growth stagnates, EV sales surged by 22% in 2024. Regions like China and Europe lead, while the US focuses on protecting domestic interests.

Electric vehicles are poised to account for one in every two cars by 2035, with the quickest acceleration anticipated in India, Latin America, Japan, and Southeast Asia. This shift, reported by Counterpoint Technology Market Research, highlights a significant evolutionary phase in the automobile sector.

The broader automobile industry finds itself at a pivotal juncture, with electric vehicle (EV) adoption continuously gaining traction. Despite a mere 1% growth in the global passenger vehicle market in 2024, the electric segment tells a contrasting narrative, propelled by soaring demand. Counterpoint Research's recent forecast reveals the global automotive industry's temporary hurdles stem from geopolitical uncertainties, recession fears, and diminished consumer spending in primary markets.

EV sales, encompassing wholesale figures, soared by 22% year-on-year. Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) rose by 10% and 49%, respectively. Senior Analyst Soumen Mandal anticipates that China's BEV sales will surpass 60% penetration by 2035. Fastest growth, however, is slated for India, Latin America, Japan, and Southeast Asia, where local and Chinese brands will play pivotal roles.

The United States is poised to protect its automotive industry from Chinese competition, while Europe has already imposed measures to curb the influence of Chinese brands unless they localize manufacturing. Counterpoint forecasts a global passenger vehicle market growth at a 3% CAGR between 2025 and 2030, and 2% from 2030 to 2035, predicting over 105 million sales by 2035.

By 2025, passenger battery EV sales are expected to surpass a 16% market share. Automakers are tackling profitability obstacles by optimizing production, forging alliances with battery producers, and setting up localized supply chains to reduce costs and boost BEV affordability and supply chain resilience for the future.

(With inputs from agencies.)