EMs Powering Ahead in Electric Car Race

Policy support, improving consumer awareness and rising affordability have been fuelling the global electric vehicle (EV) market for more than a decade now. With sales rising in double digits, EVs are gradually eating up into the market share of conventional peers. Growth, however, has eased over the past few years as government subsidies and tax credits are phasing out. The slowdown is mainly being driven by key developed markets, such as the US and the EU, where protectionism and tariffs are increasingly shaping the sector’s fortunes. In emerging markets (EMs), it is a different story. Growth in Asia and Latin America is accelerating at a speed that sees China extending its lead over Europe and the US, cementing its market dominance, while other large EM markets are now having higher adoption rates than wealthier countries. Governments in major EM countries see electric vehicles as an opportunity to attract investment, strengthen energy security and advance their green agenda. And while government incentives are important in kickstarting the industry, affordability is now the0 key to sustaining the EV momentum. Major EM countries have developed local electric car brands that are starting to see international success. Alongside China’s BYD, which has already become the number one player in the sector, Argentina’s Tito, Turkiye’s Togg and Vietnam’s VinFast are also gaining prominence. Supportive policy and relatively affordable electric cars made in China or locally have been instrumental in placing EMs in the driver’s seat to steer the EV sector on its way forward.