Why EV Growth is Slowing Down in 2024!

Why EV Growth is Slowing Down in 2024!

In this video, we break down the latest trends and statistics from the US automotive industry for the first quarter of 2024. Despite higher interest rates, new vehicle auto sales grew by about 5.0%. However, the growth of electric vehicles (EVs) has slowed significantly. Here are the key points:

– Overall Vehicle Sales: The industry saw a 5.0% increase in new vehicle sales, despite rising interest rates.
– EV Sales: EV sales in the US market reached almost 269,000 units in Q1 2024, a 2.6% increase from the same period in 2023. However, this represents a significant slowdown in growth compared to recent years. EVs accounted for 7.3% of US sales in Q1, down from Q4 2023.

Challenges in the EV Market
– Automakers’ Concerns: Fears that automakers moved too aggressively to attract EV consumers are being confirmed as EV growth slows.
– Specific Examples: Tesla’s global sales were down nearly 9% due to factory changes, shipping delays, and an attack on its German factory. US sales dropped over 13% in Q1 2024.
-Financial Struggles:
– Ford reported a $4.7 billion loss on Model E vehicles in 2023, losing about $40,525 per vehicle. In Q1 2024, Ford saw a $1.3 billion loss and an 84% drop in Model E revenue.
– Ford has halted 2024 production on the all-electric F150 Lightning and pushed back the release of their upcoming three-row electric vehicles to 2027. They are focusing on hybrid models and future hydrogen vehicles.

Industry Responses
– Audi: CEO Gernot Dolner announced a delay in producing only electric vehicles by 2026 to avoid overwhelming dealerships.
– Bentley: Delays electrification plans until 2033, focusing more on plug-in hybrids for a smoother transition.

Challenges for Consumers
– Range Fears: Average range is close to 300 miles but can be reduced in extreme weather conditions.
– Limited Charging Stations: Issues include malfunctions, payment errors, and vandalism.
– Higher Costs: EVs cost about $19k more than internal combustion engine (ICE) vehicles.
– Higher Insurance Rates: Insuring EVs can cost up to 20% more than ICE vehicles.
– Critical Minerals: High carbon footprint from mining needed for batteries.

Future of Automotive Industry
– Hydrogen Vehicles: Challenges include the need for refueling infrastructure, collaboration from various sectors, and reducing the cost of hydrogen fuel cells.
– Sustainability Focus: Automakers are pushing hybrid models and clean energy vehicles.

Opportunities in Automotive Recycling
– Recycling Industry: The slowdown in EV growth presents opportunities in recycling catalytic converters, oxygen sensors, and spark plugs.

Stay tuned for more updates on the automotive industry, market trends, and in-depth analysis. Don’t forget to like, subscribe, and hit the notification bell!

#EVMarket #CarSales #ElectricVehicles #AutoIndustry #Sustainability

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