Electric vehicles: Rewriting the rules of global mobility

Electric vehicles: Rewriting the rules of global mobility

The electric vehicle (EV) revolution is reshaping transportation faster than most imagined.

According to Gartner's data, of the 85 million EVs forecasted to be on the road in 2025, 73% will be Battery Electric Vehicles (BEVs). The number of BEVs is projected to increase by 35% from 2024,.

That’s not just growth—it’s transformation the road ahead looks electric, quite literally.

What fascinates me is how rapidly markets are shifting. China, Europe, and the US currently dominate, making up 95% of all EV sales.

But here’s where it gets interesting: India is stepping into the spotlight!

We are set to lead the world in e-three-wheeler sales, reflecting a sharp focus on accessible, sustainable mobility. The country's EV sector has shown remarkable growth.

This is a story of innovation and choice.

From 590 EV models in 2023 to an anticipated 1,000 by 2028, the shift is undeniable.

In this edition of the newsletter, I am going to discuss what’s fuelling this change and what lies ahead.

What are the Key Drivers That Pushed Rise of EVs Globally?

The global surge in electric vehicle (EV) adoption is no coincidence—it’s the result of a perfect Cocktail of innovation, investment, and policy support.

India’s electric vehicle (EV) industry hit a new milestone in 2024, with sales surging 26.5 % year-on-year to 1.94 million units - December 24, according to Vahan data from the Ministry of Road Transport and Highways (MoRTH)

China leads with over 50% EV penetration in new vehicle sales, backed by bold government initiatives like a $72.3 billion tax break package.

Breakthroughs in battery technology are slashing costs: from $149 per kWh in 2023 to a projected $80 per kWh by 2026, making EVs as affordable as gasoline cars.

Industry has attracted significant investment, particularly in battery technology development ($5 billion).

This surge in funding has supported both established manufacturers and innovative startups, driving technological advancement and market expansion.

Interestingly, the global electric vehicle (EV) market is no longer confined to traditional strongholds like USA , Europe , China . But—emerging players like Brazil, Vietnam, and India are seeing explosive growth, some reporting up to sevenfold sales increases.

Two major opportunity areas redefining its trajectory: Emerging markets and Commercial applications.

1. Emerging Market Growth

Southeast Asia and India are leading the charge:

? Thailand has quadrupled EV sales, hitting a 10% market share, driven by $28 billion in foreign investments and BYD’s new 150,000-vehicle production facility.

? India is catching up fast, with a 70% year-over-year growth in electric car registrations. Local manufacturers dominate 80% of sales, projecting 50% growth in 2024- 25.

2. Commercial Applications

EVs are transforming logistics and fleet operations:

? Companies like DHL, UPS, and FedEx are committing to electrify their fleets, with milestones like DHL’s 66% last-mile electrification target by 2030.

? Benefits include 50% lower maintenance costs, improved urban air quality, and quieter operations.

What are the Current Challenges for EV Market?

The electric vehicle (EV) revolution might be powering forward, but the road is getting bumpier.

Despite impressive growth, significant headwinds are slowing the pace of adoption. One glaring challenge: The reduced role of subsidies.

Germany’s EV sales dipped 5%, and Italy’s plummeted 20% in early 2024 as incentives dried up. It's a stark reminder of how reliant the market still is on government support.

Add to that high EV Prices , rising interest rates, and economic uncertainty, particularly in Europe, and consumer enthusiasm is starting to wane.

India's EV sales have witnessed a notable slowdown in 2024, largely influenced by changes in government subsidies.

After the FAME-II scheme ended on March 31, 2024, the impact was immediate, with monthly sales dropping. While the market rebounded during the festive season, supported by the PM E-DRIVE scheme, overall growth momentum remained subdued.

Monthly sales, which peaked at 219,482 units in October, declined 132,302 by December end.

Funding also saw a sharp decline, with EV sector investments falling 37% from $932 million in 2022 to $586 million in 2024, as investors prioritized profitability over growth.

China, despite leading the charge, faces its own hurdles. Overcapacity has left factories operating below 70%, sparking price wars that prioritize cost-cutting over innovation.

Meanwhile, traditional automakers like GM and Ford are stumbling, delaying launches, and revising sales targets due to labour costs and operational struggles.

Critical roadblocks that are slowing EV’s widespread adoption:

1. Charging Infrastructure Gaps

The global EV charging infrastructure is racing against time to meet soaring demand. A 500% expansion in charging networks is required by 2030 to support projected EV adoption.

Europe faces a critical gap, needing to grow from 630,000 charging points to 3.5 million, a 5.5-fold increase.

China, leading with 70% of public charging infrastructure, aims to boost fast chargers to 7.5 million by 2035, a sixfold jump. The UK requires a 350% increase, from 66,700 to 300,000 points by 2030.

India needs approximately 2.9 million public charging points by 2030, requiring an installation rate of over 350,000 charging points annually

Bridging these gaps demands coordinated efforts in innovation, funding, and sustainable planning to accelerate EV adoption globally.

2. Raw Material Shortages

Lithium, a key component in EV batteries, is headed toward a supply crunch by 2027.

With raw materials comprising 65% of battery costs, manufacturers are racing to recover battery production scraps, recycle old batteries, and develop alternative sources.

3. Consumer Confidence Challenges

From sparse charging stations to infrastructure reliability issues, these gaps fuel range anxiety.

Inadequate and inconsistent charging options make buyers think twice about going electric.

4. Price Parity Challenge

While China has reached price parity for 60% of EVs sold, markets like Europe and the U.S.

still face a 10-50% premium. India, however, is closing the gap quickly, expecting parity within 18 months as EVs currently cost 25-30% more than conventional vehicles.

Battery costs are dropping, from ?12,500 to ?9,500 per kWh, and government incentives are bridging the affordability gap

5. Geopolitical Challenges

The EV supply chain is under strain from geopolitical tensions.

The U.S. has imposed a 100% tariff on Chinese EVs to localize production, while China maintains control of 75% of the global supply chain.

Manufacturers are responding by building local facilities, diversifying supply chains, and forming strategic partnerships.

In my view a unified global push for better infrastructure, sustainable material sourcing, and dependable charging networks is required to finally put consumer doubts to rest.

What lies ahead for EV?

1. Solid-State Battery Revolution

? Range: Delivering up to 1,400km on a single charge.

? Safety: Eliminating flammable liquid electrolytes for greater reliability.

? Durability: Extending lifespans to 10,000 charge cycles—five times more than current batteries.

? Speed: Enabling ultra-fast charging with minimal degradation.

2. Advanced Charging Infrastructure

? Ultra-fast chargers now offer full charges in under 30 minutes.

? Wireless systems automate charging in parking spaces.

? Bidirectional technology lets EVs power homes during outages.

? Adaptive systems optimize charging based on grid capacity and schedules.

3. Renewable Energy Integration

? Solar-powered stations reduce grid dependency.

? Smart networks balance renewable energy sources for charging.

? Decentralized power systems enhance grid stability while cutting emissions.

4. Low Maintenance Advantage

? Fewer moving parts mean lower wear and tear.

? No engine oil changes, reduced brake wear due to regenerative braking.

? Advanced diagnostics predict issues before they arise, minimizing downtime.

5. Cost-Effectiveness

? Declining battery costs are reducing upfront EV prices.

? Lower running costs make EVs more economical than ICE vehicles.

? Smart energy integration allows owners to save by charging during off-peak hours or even selling excess energy back to the grid.

While the jury is still out, surely one can say that Electric vehicles (EVs) are shaping the future of transportation, and it’s more than just switching from gas to electric.

I see EVs becoming a key part of smarter, cleaner and greener transport systems.

With real-time charging updates and better route planning, EVs are solving problems like range anxiety and traffic congestion.

Plus, they’re helping cut emissions and improve air quality, which is a win for everyone especially for millions like me who stay in New Delhi NCR region in India .

What excites me most is how this isn’t just about cars anymore. It’s about building a whole system where everything connects—making travel smarter, faster, and better for the planet. The challenge now is scaling this vision.