Progress Update: Navigating the electric shift

Key Takeaways

• Combined electric vehicle sales across six major automakers grew by a robust 38%
• BYD solidified its leading position, becoming the world’s top seller of battery electric vehicles
• Automakers are increasingly focused on decarbonizing supply chains and managing battery lifecycles, alongside adjusting their production targets

Amid the ongoing transformation of the global automative landscape last year, the industry’s pivot towards electrification continued to unfold. While discussions surface regarding the pace of this transition, overall electric vehicle (EV) sales across the six major Zero Emission Vehicles (ZEV) Declaration automotive manufacturers saw a healthy 38% increase compared to 2023 (including battery-electric and plug-in hybrid vehicles). Reinforcing the positive trajectory towards an electric future, this growth strongly signals sustained consumer interest and a changing market to match.

As signatories to the ZEV Declaration, BYD, Ford, General Motors (GM), Jaguar Land Rover (JLR), Mercedes-Benz, and Volvo Cars have all committed to achieving 100% zero-emission car and van sales by 2035 in leading markets. Within this evolving electric landscape, these companies offer valuable insights into the strategies and challenges of this transition and their performance in 2024 highlights shifting leadership, advancing technology, and emerging priorities.

The electric vehicle landscape matures

The competitive landscape saw notable shifts in 2024, reflected in how effectively automakers electrified their sales. Figure 1 tracks this progress using the EV sales share metric for six automakers between 2023 and 2024. BYD maintained the highest EV sales share at 100% in 2024, followed by Volvo Cars (41%), Mercedes-Benz (19%), GM (19%), JLR (17%), and Ford (5%).

Figure 1: Global electric light-duty vehicle sales share by OEM (2023-2024)

Source: MarkLines, March 2025

Continuing its successes from 2023, BYD achieved a major milestone by becoming the global leader in battery-electric vehicle sales, surpassing sales of the next largest manufacturer by more than 1.7 million vehicles. Overall, the company reached a record 4.3 million global EV sales, a 44% increase from the previous year.

An early leader in the shift to electrification, Volvo Cars also achieved a global record in 2024, with its EV sales nearly doubling from 2023. JLR and GM demonstrated notable growth in Europe and the United States, recording an increase in global EV sales by 30% and 45%, respectively. Ford likewise achieved a 23% rise in sales, fueled mainly by its battery-electric vehicle offerings in the US.

Mercedes-Benz maintained its strong position in Europe and is making progress towards the European Union’s 2025 CO₂ emission targets. This comes even as  the company’s global EV sales experienced a slight4 % decrease  in 2024 compared to 2023.

A changing landscape requires strategic shifts

While long-term electrification goals remain largely intact, 2024 saw many manufacturers reconsidering the business case for electrification. In doing so, some adjusted their announced targets, while others expanded their strategic priorities, particularly in areas such as decarbonizing the supply chain and bolstering production capacity. 

To meet overarching climate and decarbonization goals, manufacturers have begun to place more emphasis on the sustainability of their supply chains (ICCT, Global Automakers Ranking Report  2024, upcoming). Regarding steel production, Mercedes-Benz has emerged as a leader. They’ve demonstrated early progress through strategic procurement agreements, such as securing approximately 50,000 tonnes of almost CO₂-free steel from Stegra, a Swedish green steelmaker. Likewise, GM and Ford pursued green steel supplies, making commitments through initiatives like the First Movers Coalition and establishing supply agreements.

Considering the full life cycle of an electric vehicle, efforts in battery recycling and repurposing are also underway. BYD leads this trend through its established recycling infrastructure, operating 23 battery recycling centers across China. Volvo Cars and CATL, a Chinese battery manufacturer, agreed to collaborate on recycling retired batteries, aiming to recover up to 90% of key materials for reuse in new production. Similarly, JLR partnered with Altilium in the United Kingdom to develop new battery cells derived from recycled materials.

Investment landscape shows expansion amid strategic adjustments

Across 2024, manufacturers continued to advance their EV manufacturing plans with an eye to remain competitive as the market expands.  

BYD leads the charge in global manufacturing, and following its first overseas plant in Thailand, have confirmed $1 billion each to new 150,000-vehicle capacity factories in Indonesia and Türkiye, with the latter providing tariff-free European Union market access. In Latin America, BYD is deepening its commitment to Brazil with its manufacturing plant in Bahia producing electric vehicles for the local market. They’ve also partnered with Vemo, a local charging infrastructure company, to actively deploy chargers in Mexico, highlighting the interplay between vehicle sales and infrastructure development.

European manufacturers continue their electrification efforts with strategic adjustments. Volvo Cars secured €420 million in European Investment Bank funding for a new EV platform in Europe, alongside a $1 billion investment for an electric truck plant in Mexico. Despite shelving plans for EV production in India, JLR is investing £500 million to transform its Halewood facility in the United Kingdom for flexible production lines capable of building EVs, indicating shifts in its global manufacturing strategy. Reflecting the importance of key regions in its revamped roadmap, Mercedes-Benz announced new plans to increase investment levels in China.

North American manufacturers are strategically adapting their electrification pathways amidst evolving market conditions. Ford, while postponing the launch of new EVs from its Oakville plant to 2027, is simultaneously making significant multi-billion-dollar investments to bolster its European EV transition and exploring potential manufacturing expansion into Indonesia. Meanwhile, General Motors is bringing several new EVs into the domestic market, expanding its battery manufacturing capacity and investing in a critical mineral supply chain in the US.

Investments from these big six manufacturers reflects a sustained long-term EV focus, even as near-term plans are adjusted. Automakers are employing distinct regional strategies and investment priorities to navigate a tumultuous market landscape and position themselves for future EV growth.  

Quickly emerging on the global scene, Vietnam-based automaker Vinfast maintains its ambitious global expansion strategy, actively establishing major manufacturing hubs in international markets. Following its commitment to a 150,000-vehicle capacity plant in North Carolina in the United States, Vinfast announced a similar-sized facility in India, marked by an initial $500 million investment in Tamil Nadu. These significant overseas investments underscore Vinfast’s strategic drive to build a global production network.  

The road ahead

The journey to full electrification is complex, marked by impressive advancements and necessary recalibrations. In 2024, BYD cemented its leadership in electrification, while others like Volvo Cars, JLR, and GM demonstrated significant positive momentum. The growing emphasis on supply chain decarbonization and circular economy principles indicates a maturing industry focus. As automakers navigate regulatory pressures, technological hurdles, and shifting investment priorities, their ability to adapt strategically will be crucial for success in the unfolding electric era.