The electric vehicle (EV) market is defying expectations of a slowdown, with clear indicators of a strong recovery already visible. In China, the largest EV market globally, first-quarter sales surged by 31.8% to 2.09 million units, fueled by the introduction of new models and aggressive pricing strategies by automakers. Similarly, the United States has seen a remarkable 500% increase in the availability of long-range EV models, with 30 options now capable of exceeding 300 miles on a single charge as of early 2024.
Research firm Fastmarkets projects a 36% year-on-year growth in global EV sales for 2024, continuing the trend of double-digit growth rates. This growth is not confined to established markets. Emerging economies like India, Thailand, Malaysia, and the Philippines are also witnessing a surge in EV adoption, supported by government incentives aimed at fostering the sector's development. For instance, Thailand and Malaysia offer tax benefits for EV purchases, while the Philippines is targeting the production of four million EV units over the next decade.
The broader EV sector's long-term fundamentals remain robust, presenting opportunities to identify undervalued companies poised for growth. Beyond EV manufacturers, companies in the battery sector are expected to benefit from the increasing demand for electric vehicles. Among the companies to watch are VivoPower International, which offers sustainable energy solutions and EV conversion kits; Plug Power Inc., a leader in hydrogen fuel-supply solutions; Enovix Corp., known for its high-performance batteries; and Microvast Holdings, Inc., which specializes in lithium-ion battery solutions. These companies represent the innovative edge of the EV and battery sectors, poised to capitalize on the market's upward trajectory.
