The global electric vehicle market has split: The US is falling behind

According to a new report from the International Energy Agency (IEA), the slump in the electric vehicle market is a problem unique to the US. In the rest of the world, demand for these vehicles is rising sharply. Last year, more than 20 million electric vehicles were sold globally, accounting for 25% of the total market. While China recorded the highest growth rates, sales volume in Latin America increased by 75%. This is reported by Techcrunch.com .

In the US, the situation is somewhat stagnant: the market share of electric vehicles has stalled at around 10%. Experts call this a "K-shaped" development, where one group of countries grows upward while others decline. The decline in the US is caused by the repeal of tax incentives and barriers placed on Chinese automakers. While this poses challenges for startups like Rivian and Lucid, it is forcing Tesla and traditional brands to rethink their strategies.

In China, the fact that two-thirds of electric vehicles sold are cheaper than traditional internal combustion engine cars has been the main driving force of the industry. Chinese companies are also actively capturing markets in Southeast Asia and Europe. For example, in Thailand, the price of electric vehicles has equaled that of internal combustion engine cars over the last two years, debunking the theory that electric vehicles are too expensive for developing economies.

However, this rapid growth may not be sustainable. Chinese manufacturers have exported 25% more vehicles to foreign markets than there is demand for, which could lead to a buildup of inventory at dealerships. Additionally, many countries are planning to introduce new customs tariffs on cheap Chinese electric vehicles to protect their domestic markets.