TrendForce: Electric vehicle traction inverter installed capacity fell 27% QoQ in the first quarter of 2024, with the main development being the rise of Chinese tier-1 manufacturers.

        TrendForce’s latest data on the global EV inverter market shows that due to the traditional EV off-season, installed capacity of traction inverters dropped significantly in the first quarter of 2024, to just 5.22 million units, down from 7.14. million units in the fourth quarter of 2023, 27%. Electric vehicles accounted for 48% of these installations, down 5% from the previous quarter. At the same time, the share of hybrids and plug-in hybrids increased from 47% to 52%, highlighting that range anxiety remains a key concern for consumers when buying cars. An analysis of the installation of traction inverters in different voltage ranges in the first quarter showed that the installation of 300V and 550V inverters increased by 2% and remained stable at 9%. Despite slight fluctuations, the market’s primary voltage range is still >300V. From a supply chain perspective, China’s domestic substitution strategy has enabled two Chinese companies, BYD and Inovance Technologies, to rank among the top five Tier 1 traction inverter suppliers in the world . BYD inverters are independently developed and manufactured for its own models, and Inovance Technology supports startups such as Li Auto, Xpeng Motors and Xiaomi. In addition, Huawei’s market share has increased by 1% for three consecutive quarters, and it has a better chance of becoming one of the top five vendors. Overall, Chinese companies including BYD and Inovance Technology captured 34% of the market in the first quarter, marking a shift in the dominance of Tier 1 suppliers from Europe, the US and Japan. As range concerns and geopolitical factors influence consumer behavior, many may be wary of purchasing pure electric vehicles in favor of hybrid models. TrendForce predicts that installations of pure-electric traction inverters will likely remain stable or increase slightly in the second quarter, while installations of pure-electric and hybrid models will remain flat. Overall, the traction inverter market should recover from a slow second quarter, with installed capacity growth expected to range between 10% and 20%.