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The sale of battery electric vehicles (BEVs) is set to hit the 10-million milestone this year, marking a significant achievement for the global passenger vehicle market, a report showed on Tuesday.  

The growth will be supported by the revamping of production processes and strategic partnerships with battery manufacturers, aimed at lowering manufacturing costs, producing affordable EVs, and bolstering supply chains, according to the report by Counterpoint Research.

"By revamping supply chains and preparing to produce affordable EVs priced below $35,000, automakers like Ford, GM, Stellantis, and Volkswagen are positioning themselves to compete with market leaders," said research analyst Abhik Mukherjee.

This strategic overhaul aims not only to meet stricter emission regulations but also to capitalise on evolving subsidies and growing consumer demand, revitalising the global BEV market starting from the end of 2025, he added.

The European Union’s new tariff rates for Chinese EVs aim to level the playing field for European EV manufacturers, which are struggling to compete with lower-priced Chinese imports.

"These tariffs might push Chinese automakers towards emerging markets like the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand," said Associate Director Liz Lee.

Hybrid vehicles (PHEVs and HEVs) will dominate the electric segment in the near term, said the report.