China Dominates Global Electric Vehicle Market with 45% of Sales

China continues to lead the global electric vehicle (EV) market, boasting a staggering 45% of all vehicle sales in 2024. In sharp contrast, the United States lags significantly behind, with only 8% of new vehicle sales being electric.

This gap highlights a critical challenge for U.S. automakers as they strive to keep pace with their Chinese counterparts, who are rapidly advancing in EV models, battery technology, and competitive pricing.

Rivian CEO RJ Scaringe emphasized during a recent discussion that the limited options available in the U.S. significantly hinder EV adoption.

Rivian’s CEO Urges for More Affordable EV Options to Boost U.S. Adoption

With only one or two compelling electric options priced below $50,000—primarily Tesla’s Model Y and Model 3—the market remains heavily skewed towards combustion engines, where consumers enjoy a multitude of choices across various brands and price ranges.

Scaringe argued for the necessity of expanding the EV portfolio in the U.S. by introducing at least 10 to 20 additional models to stimulate meaningful growth.

Rivian is poised to contribute to this shift with the introduction of its upcoming R2 midsize SUV, which is expected to start at around $45,000. This pricing could make it more accessible compared to Rivian’s current flagship models, the R1S and R1T, each priced over $70,000. Scaringe described the R2 as a smaller version of the Rivian brand experience, aimed at capturing a broader audience.

Moreover, Rivian is taking strides to enhance its production capabilities in anticipation of future demand. The company’s facility in Normal, Illinois, will see annual production capacity increase from 150,000 to 215,000 vehicles, with plans to add another 400,000 units when a new Georgia plant opens in 2028.

Scaringe underscored the urgency for U.S. automakers to integrate their technology efficiently, noting Rivian’s vertical integration as a competitive advantage.