The battery electric vehicles market is expected to account for 15% of global light vehicle production in 2024, according to S&P Global Mobility’s January 2024 projections.

After a coverage of 10% in 2022 and 12% in 2023, the trend will be increasing, if the above estimate is met.

For the time being, battery electric vehicle production increased to 10.2 million units in 2023, from 8.1 million units in 2022, driven mainly by growth in China. 

According to Lear Corporation, the growing demand for electrified vehicles stems from numerous product offerings from traditional and non-traditional automakers, government requirements and incentives, internal goals of automakers, and a growing segment of end consumers seeking alternatives to vehicles with traditional ICE architectures. 

Battery electric vehicles

Accordingly, Lear concludes that meeting this demand requires increased use of electronically assisted and controlled propulsion systems and related components to improve fuel efficiency; adoption of alternative energy propulsion systems, such as 48-volt mild hybrid, full hybrid, plug-in hybrid, and pure battery electric propulsion systems that facilitate vehicle electrification; and use of lighter materials throughout the vehicle.

The battery electric vehicle market has experienced significant growth in recent years, driven by increasing environmental awareness, advances in battery technology, and government regulation promoting the adoption of zero-emission vehicles.

Carbon emissions

The automotive industry continues to be shaped by the broad trend of electrification, which is likely to be at the forefront of the industry for the foreseeable future. 

To a large extent, demand and regulatory developments related to greater energy efficiency and sustainability (e.g., government mandates related to fuel economy and carbon emissions) are important drivers of this trend.

Lear’s business is influenced by vehicle segment trends that continue to experience a shift in consumer preference toward crossover and sport utility vehicles.