The International Energy Agency (IEA) has highlighted the importance of smaller, affordable electric vehicles (EVs) in promoting widespread adoption, particularly in both emerging and developed markets.
Despite EVs offering lower lifetime ownership costs due to reduced fuel and maintenance expenses, their high upfront costs continue to deter mass-market consumers. According to the IEA's Global EV Outlook, in 2023, up to 95% of EV sales in major emerging markets were dominated by large, high-end models, leaving them out of reach for many buyers.
Compact, affordable EVs have gained traction recently, especially in China, where small electric vehicles dominate the market. A report from China Economic Net revealed that in 2024, nearly 95% of small car sales in China were electric, featuring advanced technology typically seen in luxury vehicles.
Plug-in hybrid electric vehicles (PHEVs) are also on the rise, offering solutions to concerns about mileage and charging infrastructure. In the first quarter of 2024, Chinese brands accounted for over 70% of global PHEV sales, with exports expanding significantly to regions including Asia, South America, and North America.
Experts underscore the need for cross-border technological collaboration to make EVs more affordable. Luigi Gambardella, President of ChinaEU, advocates for combining European manufacturing expertise with China's advancements in AI and data management to optimise mobility solutions and drive the global EV market forward.
News Source: Emirates News Agency
