Depending on how long this pandemic lasts, whether more lockdowns happen, and how fast economies recover, the outlook projected for the EV market could change.
As we reach the end of a difficult year for many industries, interesting data has emerged in car sales. As governments responded to the COVID-19 pandemic with lockdowns, car sales dropped drastically in the first half of the year. However, one segment of the global light vehicle market, electric vehicles, remained resilient.
A report by the International Energy Agency (IEA) showed that, despite the pandemic, sales of EVs grew and the IEA expects the number of electric cars on the road to hit 10 million this year.
How did the EV market fair so well amid COVID-19 and what are the projections beyond 2020?
How Has COVID-19 Impacted the EV market?
As lockdowns took effect across the globe, vehicle production ground to a halt. With many people holed up at home and unemployment levels rising, car shopping was not a priority. Disrupted production and decreased consumer buying power led to global sales of electric cars declining by 25% in the first quarter of 2020.
China, Europe and the United States are the largest EV markets. Here’s how COVID lockdowns affected EV sales in these three countries.
- In China EV sales fell by 56 per cent in the first quarter.
- In the European Union, overall passenger vehicle sales plummeted by 76.3% by April, but sales of electric vehicles only fell by 31%.
- In the U.S., EV sales were already slowing in 2019. It declined further by 33% in the first quarter of 2020.
China implemented a lockdown earlier than most other countries. Therefore, the vehicle market recovered sooner. By March,…
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