According to a report by Counterpoint Technology Market Research, by 2035, one in two cars will be electric vehicles (EVs), with notable growth predicted in regions like India, Latin America, Japan, and Southeast Asia.
One in Two Cars Will Be EVs by 2035: Counterpoint Research
With increasing adoption rates, the EV market—especially in the automotive sector—is at a pivotal juncture.
Global sales of passenger vehicles (PVs) remained flat in 2024, increasing by just 1% annually, but the EV market demonstrated remarkable growth due to strong demand.
Global EV sales increased by 22% year over year, with plug-in hybrids (PHEVs) rising by 49% and battery electric vehicles (BEVs) growing by 10%.
China’s battery electric vehicle sales are expected to surpass 60% by 2035, according to Soumen Mandal, Senior Analyst at Counterpoint.
Mandal predicts that Southeast Asia, Japan, Latin America, and India will have the fastest rates of EV adoption.
Local Brands To Lead EV Market in India and Japan
While Chinese brands are predicted to dominate Southeast Asia and Latin America, local brands are expected to lead the EV market in India and Japan.
It is anticipated that the market penetration of BEVs in China, Europe, and South Korea will continue to surpass the global average.
Mandal added that in order to safeguard its own automobile sector, the US is probably going to prevent Chinese OEMs from joining its market.
In order to restrict sales of Chinese brands, Europe has already imposed tariffs and is anticipated to do so again unless Chinese automakers make investments in domestic manufacturing facilities.
Sales of passenger cars are predicted to reach 105 million by 2035, with the market expanding at a compound annual growth rate (CAGR) of 3% between 2025 and 2030 and 2% between 2030 and 2035.
By 2025, passenger battery EV sales are expected to account for more than sixteen percent of the market, according to Counterpoint.
Automakers are trying to increase profitability by improving production techniques, collaborating with battery manufacturers, and creating localized supply chains, according to Abhik Mukherjee, Research Analyst at Counterpoint.
These initiatives seek to lower expenses, lower the cost of BEVs, and fortify the supply chain in preparation for future expansion.
