Uncertainty around the pandemic will globally dent the sale of electric vehicles (EVs), while the recovery period is anticipated to pave the way towards healthier growth, according to Frost & Sullivan’s latest analysis of the market.
An optimistic scenario would see EVs estimated to grow by 8.6 per cent, year-on-year (YoY), and registering 2.5 million unit sales of battery electric and plug-in hybrid EVs globally in 2020.
“EV sales will be driven by the implementation of stringent emission norms across countries and global policies favouring the adoption of battery electric vehicles (BEVs),” said Prajyot Sathe, Automotive and Transportation Industry Manager at Frost & Sullivan.
Sathe said non-monetary or tax incentives are more likely to attract buyers as countries with the highest EV penetration ratio (such as Norway and the Netherlands) offer these options instead of cash incentives.
“If BEVs are pushed by original equipment manufacturers (OEMs) on new energy vehicle (NEV) credit mandates, China is set to remain the market leader with a 48.3 per cent share,” said Sathe. “Further, Europe is expected to have the highest YoY growth of over 10 per cent — availability of models, reduced delivery times and compliance push are major growth factors in the EU.”
Among the factors that will help boost EV adoption is the introduction of new models by OEMs. Second life batteries or the recycling of batteries will also come into play, along with charging — with charging as a service now an emerging trend.
