New Delhi [India], January 29 : One in every two cars will be an electric vehicle by 2035, with fastest growth expected from India, Latin America, Japan, and Southeast Asia, as per a report from Counterpoint Technology Market Research.
Counterpoint Research is a global research firm specializing in products in the technology, media and telecom industry.
The automobile industry, particularly the EV segment, is at an inflection point with its adoption increasingly rising by the day.
While the overall passenger vehicle market struggled in 2024, the EV segment told a different story - thanks to booming demand. Global passenger vehicle (PV) sales in 2024 remained stagnant, growing by just 1 per cent year-on-year, according to Counterpoint Research's latest Global Passenger Vehicle Forecast. Geopolitical tensions, fear of looming recession and reduced consumer spending in key markets have all contributed to this temporary slowdown in the global automotive market.
Global EV sales (sales here refer to wholesale figures deliveries out of factories by respective brands) jumped by 22 per cent year-on-year compared to last year. Global sales of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) experienced 10 per cent and 49 per cent year-on-year growth, respectively.
Discussing regional trends, Soumen Mandal, Senior Analyst at Counterpoint, said, by 2035, battery electric vehicles sales penetration in China is expected to reach over 60 per cent.
The fastest growth, according to Mandal, though, is expected from India, Latin America, Japan and Southeast Asia.
"In India and Japan, local brands are likely to lead the charge, while Chinese brands are expected to dominate the markets in Southeast Asia and Latin America. BEV penetration in China, Europe and South Korea is expected to remain over the global average," Mandal continued.
Mandal added, "Meanwhile, the US is determined to protect its domestic automotive industry and will likely block Chinese OEMs from entering its market. Europe has already imposed additional tariffs to restrict the sales of Chinese brands and is expected to continue this approach in the future unless Chinese automakers invest in establishing manufacturing plants for vehicles and components within the region."
According to the forecast, the PV market is expected to grow at a CAGR of 3 per cent between 2025 and 2030 and a CAGR of 2 per cent between 2030 and 2035, surpassing 105 million sales by 2035.
Counterpoint expects to see passenger battery EV sales reach over 16 per cent share in 2025.
Abhik Mukherjee, a Research Analyst at Counterpoint, said, "Automakers are working hard to solve their profitability challenges by improving production methods, teaming up with battery manufacturers and establishing localized supply chains. These efforts aim to cut costs, make BEVs more affordable and strengthen the supply chain for the future."
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