PUBLISHER: Grand View Research | PRODUCT CODE: 1530097
PUBLISHER: Grand View Research | PRODUCT CODE: 1530097
The global electric SUV market size is anticipated to reach USD 4.33 trillion by 2030 and is anticipated to expand at a CAGR of 31.9% from 2024 to 2030, according to a new report by Grand View Research, Inc. Increasing concerns about climate change and air quality are prompting consumers to opt for electric vehicles (EVs), including SUVs, which produce lower or zero emissions compared to traditional internal combustion engine vehicles. In addition, several benefits offered by e-SUVs, such as lower operating costs and energy savings, environmental benefits, and additional safety features, are making them more demandable in the global market.
Governments across the globe are offering subsidies, tax credits, and other financial incentives to encourage the adoption of EVs, making them more attractive and affordable to consumers. For instance, in March 2024, the government of India approved a new Electric Vehicle (EV) Policy worth USD 500 million, featuring a range of incentives aimed at attracting investments from global EV companies. This initiative aims to establish India as a major manufacturing hub for advanced EV technology. Such initiatives are expected to bode well for the market growth.
The EV industry, particularly in China, has been experiencing an intense price war as manufacturers compete to gain market share. For instance, according to a report published by IEA, since the end of 2022 in China, intensified competition among major manufacturers has rapidly reduced prices of electric vehicles. The prices of compact electric cars and SUVs declined by up to 10% from 2022 to 2023. In the first quarter of 2024, Tesla further reduced prices, cutting the cost of its Models 3 and Y by up to 6%, compelling rivals to lower prices despite tighter profit margins. The price war has led to substantial price cuts across various electric SUV models, making them more affordable. This has increased demand and driven sales growth.
Furthermore, as electric vehicles become more popular worldwide, substantial advancements in battery technology are driving this evolution. EV batteries are pivotal in achieving electric cars' full potential and technological progress. By utilizing clean energy, EVs offer a sustainable alternative to traditional gasoline-powered vehicles. Thus, continuous advancements in EV battery technology are boosting the market's growth.