US consumer demand for electric vehicles has started to wane as economic headwinds and inflation pick up, reducing affordability options. As inflation seems to cool and new competitors join the EV space, is there a possibility things could pick up in 2024?

Bill Newman, Industry Executive Advisor at SAP North America, joins Yahoo Finance Live with Autos Reporter Pras Subramanian to discuss the state of the EV market, domestically and in China heading into 2024.

Newman gives context to China's ability to expand with its existing electrical grid system and also explains competition entering the US.

"I think that you're also seeing some not just in China, but you're seeing some of the Asia Pacific companies — VinFast (VFS) is one — take advantage of some of the IRA funding and some of the Infrastructure Bill opportunities available to help offset some of their expansion in the world's largest market right here in the US and North America," Newman says. "Two very different markets, two very different energy frameworks, and two very different industrial policies."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JOSH LIPTON: And, Bill, I also want to get your take on the market over there in China for EVs and names like BYD. Bloomberg's saying BYD will actually surpass Tesla as the new worldwide leader in EV sales, likely in the current quarter bill. How do you see that market in China evolving? I mean, it certainly has the support of the government over there? How does it evolve, Bill? And what does that, by the way, mean for US companies like Tesla?

BILL NEWMAN: Yeah, right. So if you build to market, obviously, China is one of the largest markets in the world. Interesting industrial point from respect to China, China actually has quite a bit of electrical grid potential available. And so they don't frankly build as many combustion engine cars.

So their electrification is very nuanced around their government policy and their energy policy to have many, many power plants that generate the electricity versus trying to be part of the petrol economy, as many of the rest of the world will be, frankly, for a very, very long time. So I think there's that.

And think that you're also seeing some not just in China, but you're seeing some of the Asia-Pacific companies-- VinFast is one-- take advantage of some of the IRA funding and some of the infrastructure bill opportunities available to help offset some of their expansion in the world's largest market right here in the US and North America.