Pune, India, 9thJune, 2021: Global electric vehicles market accounted 169.8 million USD in 2020 and is predicted to reach 1060.2 million USD by 2030 with a CAGR of 20.10% during the forecast period. This information is published by ““Decision foresight”“, in its report, titled, “Global Electric Vehicle Market, 2020-2030.” According to International Energy Agency In 2020, there were more than 10 million electric cars on the road throughout the world, with battery electric models driving the growth. Despite the Covid epidemic, electric car registrations grew in key countries in 2020. On a total cost of ownership basis, electric automobiles are progressively becoming more competitive in several nations. Several governments gave or extended economic incentives to help electric car buyers weather the market slump.
COVID-19 Impact: Huge impact over Commercial Business Sales Observed amid Pandemics
The economic consequences of the Covid-19 epidemic had a huge impact on the global market for all sorts of automobiles. OEMs had to wait for the lockdowns to be removed before they could begin production, which had a negative impact on their companies. As a result, automakers had to alter their manufacturing volumes. Component production was also halted, and tiny Tier II and Tier III manufacturers suffered cash flow problems. The production halt during the early months of the epidemic, along with decreased demand, had an extraordinary impact on EV manufacturers in the early months of the pandemic. New automobile registrations fell by almost a third in the first half of 2020 compared to the previous year.
But EVs were in high demand during the Covid-19 period. As a result, there is an increasing need for electric vehicle manufacture all over the world. However, due to lockdowns and logistics issues, most firms' output was hampered in the first several months. Following the lockdowns, however, demand for electric vehicles soared as governments throughout the world pushed people to switch to low-emission automobiles. Many countries have also expanded the number of electric vehicles charging stations and hydrogen fuelling stations around their country.
The electric vehicle industry is split into three categories based on technology: hybrid electric cars, plug-in hybrid electric vehicles, and battery electric vehicles. Despite having the smallest market share, plug-in hybrid electric cars are expected to expand at the quickest rate. The vehicle type segmentation includes passenger automobiles, commercial vehicles, two-wheelers, and other vehicles. Due to the extraordinary increase in sales in China, two-wheelers are expected to dominate the industry in terms of volume. The passenger automobile category is expected to grow.
The system design of parallel hybrid, series hybrid, and mixed hybrid powertrains does not apply to battery-powered electric cars. As a result, this category excludes battery electric vehicle market volume statistics, resulting in a market value that is considerably lower than the entire market value. Parallel hybrid powertrains presently dominate the market and are expected to expand at a higher rate than series and mixed hybrids in the future.
In 2018, electric vehicle sales in the United States increased by 80%, thanks to the introduction of the Tesla Model 3 standard version on the market. The rate of growth dropped in 2019 due to a number of factors. Tesla's US sales fell in 2019 due to an increase in foreign deliveries and the progressive phase out of the federal tax credit in January and July. The federal government's recent attempts to relax restrictions may cause the EV industry in the United States to slow even more. For example, the EPA altered fuel-economy regulations in March 2020, lowering the objective to 40 miles per gallon (mpg) by 2026 from 54 mpg. Low oil prices now are also contributing to the EV slowdown, since they decrease the overall cost for vehicles with internal combustion engines (as compared with EVs). These developments are causing a lot of uncertainty, and the growth of the US electric vehicle industry might be heavily influenced by the number of states that embrace California's Zero-Emission Vehicle Program and the vagaries of oil prices.
Asia Pacific is projected to display prompt growth in the upcoming years. Incentives for the electric car industry in China have been reduced as a result of significant legislative initiatives. Purchase subsidies were set to expire at the end of 2020, but after signs that they would be phased out more gradually before to the epidemic, they were instead slashed by 10% and extended to 2022 by April 2020, in the middle of the pandemic. Several cities eased automobile licence rules in response to the pandemic's economic concerns, letting more internal combustion engine vehicles to be registered in order to assist local car manufacturers.