Applications: EV

EV Demand: List of Factors Behind Slower EV Growth While several global factors continue to influence EV adoption, the recent slowdown in sales growth reflects a combination of cost pressures, policy shifts, consumer confidence, and region-specific market dynamics, not a reversal of electrification.

North America

Europe

Primary constraint: cost pressure + policy fragmentation

Primary constraint: affordability + infrastructure friction

Reduction and uncertainty in federal incentives (e.g., IRA eligibility, leasing rules, end of the EV tax credits) and lack of availability/vehicle variety Higher upfront prices compared to ICE vehicles and higher electricity prices compared to gas prices in some states Charging infrastructure gaps continue, but will narrow as non-Tesla OEMs adopts the North American Charging System NACS for access to Teslaʼs vast and easy supercharging network Home charging barriers for renters and multi-family housing along with inadequate electrical panels in older homes built before 1980. Elevated interest rates in states/provinces without local rebates disproportionately affect EV affordability due to their more rapid depreciation and higher insurance costs Weak used-EV resale values affecting lease pricing (higher monthly lease payments) and consumer confidence (increased total cost of ownership and market stability)

Source: Pivot Research, company announcements

Norway remains the global leader with EVs representing 90%+ of new car registrations and Germanyʼs EV sales have bounced back by 35% after incentives were cut in December 2023 Phase-out of EV purchase incentives across major markets this year such as France, Denmark, Finland and Italy has impacted sales. Slower EV uptake in Southern Europe due to a lack of charging infrastructure and government incentives compared to Northern Europe. Limited affordable EV models from European OEMS are facing increased competition from the Chinese automakers BYD, XPENG, NIO, etc.) High inflation, elevated interest rates, and higher electricity prices have reduced consumer willingness to finance new EV purchases Tighter CO2 emissions targets coming into effect in 2025 alongside regulatory uncertainties, particularly the ICE vehicle phase-out, are shaping OEM strategies towards Hybrids and PHEVs as a transitional option.

Extracted from the PDF; charts and images may read imperfectly.