As 2024 draws to a close, we look back at the tumultuous year of ups and downs for the global EV industry and the major events that occurred in 2024 that may shape this rapidly evolving industry in 2025.
EV market disruption and policy changes
The European Union has raised import tariffs on Chinese electric vehicles by up to 45%, compelling Chinese EV manufacturers to consider establishing production facilities within the EU. This policy shift has created new market dynamics for Chinese manufacturers in Europe.
In a significant industry milestone, BYD's revenue surpassed Tesla's in the third quarter of 2024, marking a pivotal moment in the global EV market competition. Meanwhile, Tesla executed its largest-ever workforce reduction, cutting more than 10% of its global staff, while several senior executives departed amid intensifying market competition.
Major industry shifts
Apple has reportedly terminated its decade-long electric vehicle development project after investing billions of dollars, marking a significant strategic pivot for the technology giant. In contrast, Xiaomi entered the EV market in March with its SU7 model, positioning it as a competitor to the Porsche Taycan. The launch has generated substantial market interest and exceeded initial sales projections.
Japanese automotive giants Nissan and Honda are exploring a potential merger, aiming to create a stronger competitor to Toyota domestically while enhancing their global market position. Meanwhile, Volkswagen faces challenges from Chinese EV competition and declining sales in China, leading to proposed factory closures and workforce reductions. However, labor unions have initiated large-scale strikes and negotiations, potentially preventing the closure of German facilities.
Product launches and market challenges
Tesla unveiled its Cybercab prototype during the "We, Robot" event, announcing production plans for 2026 with a target price below US$30,000. However, market analysts remain cautious about the timeline for commercial availability.
The automotive semiconductor sector faces headwinds as global demand weakens, resulting in disappointing third-quarter financial results for European manufacturers STMicroelectronics, NXP, and Infineon. The sector outlook remains uncertain, reflecting persistent weak demand from European and US automotive customers.
Political developments
Tesla CEO Elon Musk has emerged as a significant supporter of Donald Trump, providing financial and logistical assistance during the 2024 US presidential election. Following Trump's victory, Musk is positioned to lead the Department of Government Efficiency to support government reform initiatives.