Electric Vehicles and Global Markets
It goes saying without a doubt, that Electrical Vehicles are the future vehicles on roads. This will not only be limited to cars but also extend to all types of vehicles. In 2019, the electrical vehicles reached a soaring high of 2.1 million globally compared to its previous year which boosts the stock exchange to 7.2 million. The Electric cars saw a yearly increase of 40% that accounted for 1% of global car stock and 2.6% of global sales in 2019.
Sales of electric cars topped 2.1 million globally in 2019, surpassing 2018 – already a record year – to boost the stock to 7.2 million electric cars. Electric cars, which accounted for 2.6% of global car sales and about 1% of global car stock in 2019, registered a 40% year-on-year increase. As technological progress in the electrification of two/three-wheelers, buses, and trucks advances and the market for them grows, electric vehicles are expanding significantly.
After entering commercial markets in the first half of the decade, electric car sales have soared. Only about 17 000 electric cars were on the world’s roads in 2010. By 2019, that number had swelled to 7.2 million, 47% of which were in The People’s Republic of China (“China”). Nine countries had more than 100 000 electric cars on the road. At least 20 countries reached market shares above 1%.2 The 2.1 million electric car sales in 2019 represent a 6% growth from the previous year, down from year-on-year sales growth at least above 30% since 2016.
Three underlying reasons explain this trend:
Trend 1: The car market slumped, and passenger sales reduced in many prominent countries in 2019. Even throbbing markets like India and China saw a sales drop in passenger vehicles. Irrespective of poor sales the worldwide electrical vehicle car sales market, the electric vehicle market shares (2.6%) had a splendid record. In 2019, China has 4.9% and Europe with 3.9% accomplished a new record in the EV shares.
Trend 2: Due to the reduction in subsidies in key markets, including China and Europe, the sales figures for Electrical Vehicles dropped.
China: sales dropped in the second half of 2019
USA: There was a 10% drop.
As China, Europe, and the USA was the hub for 90% of electric cars, the global car sales were hit badly and also overshadowed the otherwise 50% sales in Europe, from thereon, and the growth in electric vehicle sales experienced a sluggish growth.
Trend 3: Over a period of time, technology advanced, adding more features and improvements compared to the previous electric vehicle model. This increased the consumer demand, and expectations giving birth to new models and meet consumer expectations. This caused the automobile company, Tesla a leap in its electric vehicle sales in 2018 in the USA as well.
Recently, automakers have announced diversified options of electric cars, expected in 2020 or 2021. For the next five years, they have proclaimed to release 200 new electrical vehicle car models but most of them in the sport-utility market.
Unfortunately, the COVID-19 pandemic has slowed the growth rate of the automobile industry and has affected electric vehicle sales. Having said that, the changing trends, customer expectations, technology, and market trends suggest, there is a huge potential for electric vehicles in the near future and will be a pioneer in the automobile industry.
