Electric Vehicle Market is likely to witness considerable growth by 2027, rising scale of economies for electric vehicle manufacturers will eventually drive growth of the EV in the near future.
The global electric vehicle market is on the verge of a making a gigantic leap as product innovations, sustainable initiatives, and consumer demand comes together to create tremendous futuristic prospects. According to International Energy Agency (IEA), electric vehicles will make 40% of all passenger vehicles by 2040. The estimation may not be surprising to most as electric vehicle makers like Tesla have already made foray into new areas like trucks for off-road transportation, and urban transportation demands like taxis. Moreover, Chinese electric bus markers have won promising contracts in Europe, wherein electric bus adoption is on a significant rise. Moreover, demand for electric vehicle is promising for global manufacturers of vehicles.
Global Electric Vehicle Market: Notable Developments
As part of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME), the Indian government has announced acquisition of 7,000 electric buses, 55K four-whellers, and 10,00,000 two-wheelers. The Indian government will spend over $1.4 bn to acquire vehicles that operate on lithium-ion batteries, and/or on electric power trains. The investment proposed in October 2019, will take over place over next three years, till 2022.
The share of electric vehicles surged to 42% of all new sales in Norway in 2019. The year really turned electric for Tesla in the country, wherein positive incentives for electric adoption continue to drive growth for the company with shares rising to 42% from 31% in 2018. The company sold a total of 18,798 cars in the country, with its model 3 noting the highest registrations.
According to China Passenger Car Association, over 20.7 million passenger vehicles were sold in China in 2018. China, the biggest market for automobiles witnessed a worrying 7.4% drop in sales during 2019. This drop came on mostly on the back government's plans to reduce incentives for electric vehicles for consumers. Consumers flocked to buy electric vehicles throughout the year resulting in 5.1% increase in the beginning year. However, as soon as the subsidies were removed, it resulted in lower sales for six-consecutive months.
Global Electric Vehicle Market: Drivers and Restraints
The electric vehicles laden with connected entertainment systems, sensors, and automation have sparked new interest among consumers. The global auto market is witnessing a held-back demand from many consumers as the horizon clearly points towards adoption of electric vehicle by 2025. Globally, the mandate for Zero Emission Vehicle dictates that the vehicle should make up 10% of total sales by 2025. With the likes of Mercedes Benz, Toyota, GE, and BMW lining up new models, the adoption of electric vehicle will likely be higher even without the government push.