The global electric vehicle (EV) market is witnessing significant shifts in production patterns across different regions. While local production remains the dominant approach for most car manufacturers, there’s an increasing trend of international companies establishing manufacturing presence in foreign markets.
Regional Production Trends
In 2024, the production of electric cars showed varied patterns across major regions:
- China: Dominated by local manufacturers, with some presence of U.S. companies like Tesla operating factories near Shanghai. Chinese companies are also beginning to produce EVs in Europe.
- North America: EU-based carmakers lead non-U.S. production, followed by Japanese and Korean manufacturers. The U.S. saw a 7% decline in EV production.
- European Union: U.S., Chinese, Japanese, and Korean companies are actively producing EVs within the EU, increasing competition.
- APAC Region: Generally dominated by local manufacturers.
Key Market Observations
- U.S. companies Tesla and Ford increased their EU-based EV production in 2024.
- Some European manufacturers saw stagnant or contracting domestic production.
- Mexico, primarily with U.S. companies, saw growth in EV production.
- The U.S. and other regions supplemented local production with significant EV imports.
Market Implications
The global EV market is becoming increasingly competitive with manufacturers from various regions expanding their production footprint beyond their home markets. This trend is particularly evident in North America and the EU, where foreign manufacturers are gaining market share through local production.
The chart provides a visual representation of the share of electric car production in 2024 by country/region and manufacturer origin. It highlights the growing presence of international manufacturers in various markets, signaling a shift towards more globalized production patterns in the EV sector.
