Electric Car Market Set for Prosperity in Future

[Business Point 2021]

According to the International Energy Agency (IEA), 2.3 million electric cars were sold across the world, in 2020. High volume sales of electric vehicles (EVs) can be attributed to the stringent government emission norms, on account of the rising environmental pollution concerns. Over the last decade, greenhouse gas (GHG) levels have significantly surged due to the vast number of fossil fuel-based automobiles operating on global roads. To mitigate the adverse effects of GHGs, governments across the world are supporting the production and adoption of such cars within their territories.

Moreover, the rising consolidation and surging number of joint ventures among the leading electric car manufacturers will fuel the electric car market at a CAGR of 33.6% during 2017–2023. The market sold 0.8 million units in 2016 and it is projected to sell 5.3 million units by 2023. Manufacturers are collaborating with each other to develop novel technologies to create more advanced electric cars that cater to the surging needs of customers. For example, in September 2017, Mahindra & Mahindra Ltd. allied with Ford Motor Co. to develop and produce EVs and connected vehicle technology for 3 years.

According to P&S Intelligence, APAC records the highest sales of electric cars, due to the huge government support in terms of incentives and subsidies on such vehicles and implementation of stringent vehicular emission norms in Japan and China. For instance, according to the China Association of Automobile Manufacturers (CAAM), the sales of battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) passenger cars increased from 155,000 in October 2020 to 186,000 in November 2020.

Whereas, the European electric car market is expected to register the highest sales rate in the coming years, due to the increasing adoption of such new energy vehicles in the U.K., Norway, and Germany. According to the European Federation for Transport and Environment, 507,000 new PHEV electric cars were sold in the 27 member nations of the European Union in 2020. In the same year, one out of eight cars purchased in Germany was an EV. As per this organization, Renault Zoe, Volkswagen ID, and Tesla Model 3 were the most commonly procured BEVs in the EU countries.

Thus, the rising government initiatives toward promoting EV sales and manufacturing and increasing collaborations among OEMs will augment the adoption of electric cars in the foreseeable future.

For more insight:

https://www.globenewswire.com/news-release/2018/10/31/1639857/0/en/...