Under the second term of President Trump, the U.S. withdrew from the Paris Agreement and suspended its BEV preferential treatment.
Even in China, which has formed the world’s largest electric vehicle market, PHEVs have continued to outpace BEV sales since early 2024 in the C/D segment, the largest market size. Although Europe has imposed dumping tariffs on Chinese BEVs, which continue to expand imports, the market erosion of Chinese BEVs has not been halted.
In Japan and the ASEAN region, where Japanese cars have a strong market base, BEV and PHEV sales are steadily expanding in markets that used to be dominated by ICE and HEV vehicles.

Although the BEV market has begun to show some variation by region and country, it is clear that Tesla and emerging Chinese BEV makers, who have taken the lead in BEVs, are expanding their market share in China and other open markets where exports are possible without tariffs, thanks to their overwhelming price competitiveness and profitability,
Furthermore, these leading BEV makers are gaining a competitive advantage over existing OEMs in the introduction of automated driving and SDVs.

Considering the differences in energy and power source composition and automobile lifestyles in different countries and regions, it is inevitable that the path to carbon neutrality will differ from country to country and region to region.
For the time being, it is inevitable that there will be a juxtaposition of countries aiming to electrify mainly BEVs, add PHEVs, electrify mainly HEVs, and re-intensify fuel-efficient engines using low-carbon fuels.

In this report, we will analyze the global electric vehicle market, which is becoming clearer and clearer, and discuss the trend toward SDVs, in which emerging BEV makers are taking the lead.