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EV - Driving through Congestion

Sameer Kalra

In recent months the slowdown in electric vehicles has been global and concerning to many. The fully electric vehicles registration share fell to 63% from 70% in 2023. There is a stable increase in the share of hybrid plugins. This trend has raised questions about whether customers are willing to buy hybrid plugins without subsidies compared to fully electric ones with subsidies.


The current market scenario has also impacted the under-construction or planned investments. Some include LG Energy solution $ 5.5Bn plant in Arizona and VinFast's $2Bn plant in North Carolina. These delays not only have a short-term impact but a medium-term impact as well because this further delays skilling up the manpower required and the ecosystem that is needed around it. Thus, having more economic impact on the future. 


Another impact is that the demand can start to reverse quickly because of the concentration of the large markets. This might put pressure on manufacturers to reconsider the pricing when supply goes short. 


The first sign of reversal came from China where subsidies renewal has resulted in some level of demand rise. If this gains momentum in the coming months then next year would bring surprises to many.

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