This year, the sale of battery electric vehicles (BEVs) is expected to reach the 10-million milestone, demonstrating a significant accomplishment for the global passenger vehicle market. A report released on Tuesday highlighted that this growth will be facilitated by the modernization of production processes and strategic partnerships with battery manufacturers.
These efforts are aimed at reducing manufacturing costs, making electric vehicles more affordable, and strengthening supply chains. The report was prepared by Counterpoint Research.
"By revamping supply chains and preparing to produce affordable EVs priced below $35,000, automakers like Ford, GM, Stellantis, and Volkswagen are positioning themselves to compete with market leaders," said research analyst Abhik Mukherjee.
This strategic overhaul aims not only to meet stricter emission regulations but also to capitalise on evolving subsidies and growing consumer demand, revitalising the global BEV market starting from the end of 2025, he added.
The European Union has introduced new tariff rates for Chinese EVs in an effort to create a level playing field for European EV manufacturers. These manufacturers are currently struggling to compete with lower-priced Chinese imports.
"These tariffs might push Chinese automakers towards emerging markets like the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand," said Associate Director Liz Lee.
Hybrid vehicles (PHEVs and HEVs) will dominate the electric segment in the near term, said the report.
Meanwhile, Ola Electric has recently received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). This makes it the first electric vehicle (EV) startup in India to achieve this milestone. The IPO will include a fresh issuance of shares valued at Rs 5,500 crore and an offer-for-sale (OFS) of 9.51 crore equity shares, as outlined in the draft red herring prospectus.
Under the OFS, Bhavish Aggarwal will be selling 4.7 crore equity shares, while the promoter group, Indus Trust, will divest around 41.78 lakh shares. Ola Electric filed the draft IPO papers with SEBI in December 2023, aiming to raise Rs 5,500 crore, which also includes a pre-IPO placement of Rs 1,100 crore.
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Inputs from IANS
