PHEVs to Propel Global EV Market Expansion in 2025

Synopsis

The electric vehicle market is set for significant growth in 2025, driven by the PHEV segment, while BEV sales may face challenges. Hyundai's think tank predicts an increase in global EV sales, particularly in China and the U.S., despite obstacles in South Korea.

Key Takeaways

Global EV market projected to grow to 20.7 million units
PHEV sales expected to rise by 23.8 percent
BEV sales in China to increase by 13.1 percent
1.9 percent rise in total automotive sales forecasted
Interest rate cuts may enhance purchasing conditions

Seoul, Jan 15 (NationPress) The worldwide electric vehicle (EV) market is projected to experience substantial growth this year, primarily fueled by the plug-in hybrid electric vehicle (PHEV) sector, while the battery electric vehicle (BEV) segment is likely to encounter hurdles, according to a think tank associated with Hyundai Motor Group.

Yang Jin-soo, who heads the mobility industry research division at the Hyundai Motor Group Business Research Center, anticipates that the global EV market, which includes both BEVs and PHEVs, will rise from 17.2 million units in 2024 to 20.7 million units in 2025, as reported by the Yonhap news agency.

While sales of BEVs are forecasted to increase by 18.9 percent year-on-year, PHEV sales are expected to surge by 23.8 percent, making up for the slower growth in the BEV sector, according to Yang.

This pattern is likely to be especially visible in China, which is the largest EV market. Sales of BEVs in China are projected to rise by 13.1 percent year-on-year, reaching 6.97 million units, whereas PHEV sales are anticipated to grow by 25.1 percent, totaling 6.4 million units.

In the United States, BEV sales are expected to increase by 18.3 percent to 1.94 million units, although factors like diminishing profitability and new regulations under a potential second Donald Trump administration could affect the market.

Yang also predicted a 1.9 percent rise in global automotive sales across all fuel types, reaching 85.9 million units in 2025.

“Interest rate reductions in key markets are likely to enhance buying conditions, particularly in the latter half of the year,” he stated.

However, in South Korea, stricter loan regulations and declining consumer confidence are viewed as negative influences, with demand anticipated to increase modestly by 1.7 percent to 1.62 million units, according to Yang.