- EVs are estimated to grow by 8.6 per cent year-on-year (YoY), registering 2.5 million unit sales (battery electric vehicles plus plug-in hybrid electric vehicles) globally in 2020
- Market participants should focus on the introduction of new models to help OEMs increase the percent penetration of EVs
The global EV sales have increased with the implementation of stringent emission norms as per Frost & Sullivan’s Global Electric Vehicle Market Outlook, 2020. It estimated that global EV sales stood somewhere between ±9% in 2020 compared to 2019 under three different scenarios—gradual containment, severe pandemic, and global emergency.
It added that as the market recovers, which is probably after June in the best-case prospect, it is predicted to experience healthy growth. As per them, EVs are estimated to grow by 8.6 per cent year-on-year (YoY), registering 2.5 million unit sales (battery electric vehicles plus plug-in hybrid electric vehicles) globally in 2020.
Introduction of new models to help OEMs
Prajyot Sathe, automotive and transportation industry manager at Frost & Sullivan said, “EV sales will be driven by the implementation of stringent emission norms across countries and global policies favoring the adoption of battery electric vehicles (BEVs. Additionally, non-monetary or tax incentives are likely to be more attractive for buyers as countries with the highest EV penetration ratio such as Norway and the Netherlands offer these rather than cash incentives.”
Sathe added, “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. 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.”
The report said that to tap into the growth prospects exposed by EV, market participants should focus on the introduction of new models to help OEMs increase the percent penetration of EVs. It said that a big number of recyclers and dismantlers will come into play as the first phase of batteries will be available for second life or recycling.
As per the report, charging as a service is an emerging trend. Partnerships will be necessary for traditional participants to compete with start-ups. Capitalising on existing expertise will help component manufacturers sustain the transformation of the industry said the report.
