“Post COVID-19, market size is projected to reach 4.18 million units by 2021 from an estimated 3.42 million units in 2020.” [i]
Some of the major players in the electric vehicle and EV charging market are Tesla, BYD, BMW, Volkswagen, and Nissan. With Tesla models being at the forefront. [i] Despite COVID-19 impact, Tesla delivered more than 88,000 electric vehicles in the first quarter of 2020, surpassing Volkswagen EV cars sold. Although EVs are continuing to rise, automakers must continue to educate consumers about electric vehicles and autonomous vehicles. This is in order to reach projected numbers as this industry grows. A huge roadblock for future EVs and AVs is lack of consumer knowledge. [ii]
Asia is expected to be the largest electric vehicle market by 2021. This is due to the rising demand for greener transportation along with several initiatives by private organizations as well as governments. The COVID-19 pandemic has caused a slowdown in China’s economic growth. Still, the country is in the leading position in terms of the largest EV market, followed by Europe and the US, thus making Asia Oceania the market leader. [iv]
“A battery and electric vehicle research company, predicts a surge in electric vehicle sales in 2021 as countries around the world are introducing new programs that encourage consumers to buy battery-powered cars. Global sales of electric cars in 2021 will grow by 36% and top 3 million vehicles for the first time ever.”
Researchers believe that the two main factors driving demand for electric cars are in Europe and China. [v] Although the EV industry took a hard hit during Q1 and Q2 of this year, long-term growth is still on the table.
The EV and AV market is expected to keep growing, however, there are setbacks due to Coronavirus. Due to the economic slump EVs will have higher price tags. Furthermore, researchers fear that consumers were already hesitant to purchase more expensive EVs, and that hesitation is even more evident now as prices rise.
Second, is the domino effect that COVID-19 has produced, leading to more people working from home and driving less. [vii] Not only that, but the price drop in gasoline is a huge factor in the current EV industry. Lastly, the government-backed financial incentives won’t be as available for buyers in a financial crunch. [vii] These different factors have been critical over the years in expanding the EV market across the world. [vii] Although our current economic state is providing setbacks for the EV industry, fear not! Things are looking up.
In Italy, records show that car registration for gas- and diesel-powered vehicles fell by 97.5% last month. Though, battery electric vehicle sales only decreased by 58.1%. EVs are not only proving to be more robust amidst an auto industry in decline, but they are also displaying some signs of recovery. [viii]
As people are encouraged to stay home, our society is doing more research and finding things to to put their passion and efforts towards. This is GREAT news for EVs. More eco-conscious markets will create a pathway to help EVs emerge stronger than ever. [viii]
As researchers predict this market to grow as we make our way through and hopefully out of this global pandemic, Rogers Electric is prepared to step up to the plate to help the EV industry continue to grow.
Rogers Electric has worked with companies like Nissan, Tesla, and Chevrolet over the years to support their dealerships, showrooms, and even home services. Today, this experience has expanded into retail, public spaces, and even distribution centers for truck fleets. Rogers Electric can combat the demand for electric vehicles! Head on over to “Our Work” page to check out some work we’ve done with other similar retailers!