The electric vehicle (EV) market is witnessing a notable recovery, defying widespread predictions of a slowdown in demand. In China, the largest EV market globally, first-quarter sales surged by 31.8% to 2.09 million units, driven by new model launches and price reductions. Similarly, the U.S. has seen a remarkable expansion in the availability of long-range EVs, with 30 models capable of 300 miles or more on a single charge available at the start of 2024, a 500% increase over three years.
Research firm Fastmarkets projects a 36% year-on-year growth in global EV sales for 2024, continuing the trend of double-digit growth rates. Emerging markets like India and Southeast Asia are also experiencing rapid EV adoption, supported by government incentives. For instance, Thailand and Malaysia offer tax benefits for EV purchases, while the Philippines aims to produce four million EV units in the next decade as part of its sector development strategy.
Despite current downturns in EV stocks, the sector's long-term prospects remain strong, presenting opportunities to identify undervalued companies. The anticipated demand rebound is expected to benefit not only EV manufacturers but also battery producers. Among the companies poised to capitalize on this trend are VivoPower International, which offers sustainable energy solutions, and Plug Power Inc., a leader in hydrogen fuel-supply solutions. Additionally, Enovix Corp., with its high-performance batteries, and Microvast Holdings, Inc., specializing in lithium-ion battery solutions, are well-positioned to benefit from the growing EV market.
