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The EV market in Europe and North America has experienced slower than expected growth in 2024. Subsequently, media in August and September has been awash with news of OEMs scaling back EV production and sales targets. Major automakers such as Ford, Lotus, Volvo, Toyota, VW, and Stellantis have all announced adjustments to their EV strategies. This comes against a backdrop of other players doing the same throughout 2024.
Ford cancels and delays planned EVs
On the 21st of August, Ford cancelled its plans to produce an all-electric SUV and delayed the release of an electric T3 pick-up truck. This news came as Ford aimed to prevent overspending on vehicles that consumers are not purchasing as quickly as expected. This followed the company delaying its plan to sell only BEV passenger cars in Europe from 2030, in July stating it was “too ambitious”. Instead, it will continue to offer ICE and hybrid models.
Lotus dramatically cuts its annual sales target
Lotus Technology, on the 28th of August, cut its 2024 sales target by 54% to 12,000 sales, from an initial 26,000. Although, this includes both EV and ICE vehicles, the majority of Lotus’ sales are EVs. A subsidiary of Geely, the company announced the change after releasing poorer than expected H1 results. The company also cited market uncertainties due to EU and US tariffs.
Volvo scraps 2030 fully electric goal
In 2021, Volvo announced it would become an all-electric car manufacturer by 2030. On the 4th of September it scrapped this target. It now aims “for 90 to 100 per cent of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models.” Up to 10% of sales will still consist of mild hybrid models.
Toyota reportedly cuts 2026 EV sales target
On the 6th of September, Nikkei business daily reported that Toyota now plans to build one million EVs in 2026, compared to an initially announced 1.5 million. The decision was prompted by an underperforming EV market.
VW halved capacity of battery plant over poor EV sales
Although, VW has not changed its EV 2030 sales target, 70% of sales for Europe and 50% for China and the US, it has warned of a slowing demand. On the 6th of September, VW announced it was halving the capacity of its Salzgitter battery facility as a result of a slow growing EV market.
Stellantis suspends BEV Fiat 500 production
On the 12th of September, Stellantis announced the suspension of its fully electric Fiat 500 production at its historic Mirafiori plant in Northern Italy. The suspension, lasting four weeks, is due to a lack of orders. As a consequence of changing consumer demand, Stellantis is set to release a hybrid version of the Fiat 500 to align with the ever-evolving market.
Elsewhere this year, GM, and Mercedes Benz, have all revised EV sales or electrification targets. Even Tesla has not been immune as Rho Motion expects no growth in sales for 2024 compared to 2023.
Rho Motion’s Evaluation, announcements in the context of figures
Globally, EV sales are growing, however this is heavily skewed towards China due to the sheer volume of units being sold there. When considering regions separately, the numbers tell a different story.
Europe from January to August, saw a 4% decrease in EV sales compared to 2023. A large driver of this is the poor performance of the German market, which down 23% year to date. However specific countries such as the UK, Belgium and France have all seen promising positive growth. In the US, the total EV market is up 9% year on year, driven in a large part by a 15% increase in PHEV sales. China is up 33% year to date, with August being its best performing month ever, like the US, China has also experienced strong PHEV growth. However legacy automakers are struggling to maintain or establish a meaningful market share there, leaving them reliant on EV sales in Europe and North America.
Although sales are growing, growth has not been what car manufacturers expected. Subsequently, as OEMs juggle the challenge of maintaining profitability, developing new vehicles, as well as maintaining current ICE offerings, electrification targets are driven by current market demand. However, current market demand does not necessarily reflect future markets.
More Information
For more information about the EV market, EV sales, or OEM strategy see our EV production and sales research, or get in touch.
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