It is undeniable that almost every business sector has seen a huge blow due to the coronavirus and its ramifications, but how has this affected the EV market? Sales of electric passenger vehicles are predicted to fall by 18% in 2020 to 1.7million worldwide. This means the coronavirus has interrupted the ten years of steady growth in sales of EVs. This may seem very disheartening for the EV industry, however, the predicted fall in combustion engine car sales is 5% greater than that of EVs.
This means that while the sales of EV have dipped for 2020, they are still expected to rise rapidly over the coming years while consumers become more educated on the cars and EVs become more widely accessible to the public.
A research company BloombergNEF have shown that electric models are estimated to account for 58% of new passenger car sales globally by 2040 and will make up 31% of cars on the road. EVs will also make up 67% of buses and 24% of light commercial vehicles. This analysis also revealed that the global sales of internal combustion engines is thought to have peaked in 2017 and will continue to decline long-term.
The lithium-ion battery which fuels EVs has seen a fall in prices which means the up-front cost of buying your EV will decrease, making it more accessible to those on lower budgets. New models being released at a lower price range will make it easier for the average person to make the switch to electric and thus will further increase the sales of EVs.
One positive to the pandemic is that people have seen what drastically reducing emissions can look like in their own cities. The steep decline of cars on the roads during lockdown directly correlated with the plummeting levels of pollution both in the air and in the rivers our cities are built around. This has shown the public what the carbon emission from their combustion engine vehicles is doing to their environment and is thought to contribute to a sharp rise in EV sales over the coming years.
A recent study shows that 45% of people have reconsidered their EV options as a result of the improvement in air pollution seen across the globe and a further 7% said it reaffirmed their decision to switch electric with their next car.
So, it seems that while the EV industry has taken a hit due to coronavirus, it is set to recover and see more sales than ever before.
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