Electric Vehicles (EV) are the future of the automobile industry. To this present day there are more than 10 million EVs cruising down the street across the world.
China is the largest EV market and Norway has the biggest share of electrical passenger cars. This segment has a market share of 4% as of 2019 it is worth $162.34 billion.
EV sales in Europe were 55% higher in 2020 when compared to previous year levels. About 10% of the global EVs were sold in Europe alone during the pandemic year.
When the pandemic struck the global auto market hit record lows. The dip in sales during 2020 was much higher than 2008 financial crises. However the EV market recovered much quicker and witnessed an increase in growth.
In 2019, overall sales for the market stood at 2 million but by the end of 2020 this crossed the 4 million mark – much higher than what forecasters had predicted.
The key reasons for such resilient growth was policy support that the market received mainly from the European nations.
China, France Italy, California, United Kingdom and several other nations had issued new subsidies and tax concessions which were very attractive. Germany even offered several incentives to people purchasing electronic vehicles because it had to meet its target emission levels. Dip in manufacturing costs also dipped battery charges.
LEADER OF THE MARKET
Elon Musk owned Tesla is the leading manufacturer of EVs worldwide. It holds a market share of around 16% in the global EV market.
Tesla’s sales rose to $31 billion in 2020 from $400 million in 2012. Tesla itself sold over 4,99,000 vehicles during the pandemic year and in the first few months of 2021 recorded sales of 1,85,000 vehicles. By the end 2021 deliveries are projected to be over 700,000 units.
One of the major factor for the boost in its sales was the manufacturing unit in China which began operations during the last few months of the pandemic year.
The electric car market has a very optimistic future given the way nations have backed up and brought in policies in favor of EV ecosystem.
In order to achieve targets and goals of decarbonization and clean energy transitions, it is important for nations to ensure rapid electric vehicle growth in the coming decade.
China is said to make sales worth $3.7 million by the end if 2021. And by 2025 nearly 25% to 50% of passenger vehicle are said to be electric.
This market is to play a vital role to attain growth and sustainability in the transportation segment. Deliveries are expected to reach 27 million by 2030 and by 2027 the market is predicted to be worth $802 billion with an annual growth of 20%.