Automakers need strategy reset to bring EVs mainstream

Initial enthusiasm for electric vehicles (EVs) has not played out as expected, at least on a global level. Nearly 14 million EVs were sold around the world in 2023, a notable 35% year-on-year increase but a decided slowdown from the 55% recorded in 2022 and the 121% jump in 2021. Automakers are not taking it well. The end of 2024 saw numerous OEMs backtracking on electrification plans, with some shifting towards hybrids or extended-range EVs as a perceived ‘safer’ alternative. But slowing EV sales growth doesn’t necessarily mean the long-term outlook for battery-powered transportation is in jeopardy.

Recent research from Accenture suggests that the majority of consumers remain optimistic about an electric future, though mass adoption may take decades and automakers may need to adjust their strategies as the market matures.