The health crisis had a negative impact on multiple, if not most, business sectors and the auto sector was not immune from the effects of the pandemic. Yet in the post-Covid era, electric vehicle sales are forecast to experience a boost, according to the latest BloombergNEF annual EV forecast. China is expected to see an increase of more than 8% of all sales while a 5% rise is forecast in Europe.
What is more striking is that by 2025, EVs will reach 10% of global passenger vehicle sales, rising to 28% in 2030 and 58% in 2040. “EV adoption is probably going to keep rising and not even dip, which is quite remarkable, but that adoption rate is about to get very different between different countries,” said Colin McKerracher, BNEF head of advanced transport.
However, while Europe and China will speed up their EV projects, the US is forecast to lag behind. In fact, the positive trend will be reflected in countries where governments have provided or will provide financial incentives, the report suggests. In particular, public charging points might see a lift after the evidence linking air quality and Covid casualty rates grows
This won’t happen in the US. According to the research, in the US, government stimulus is low or lacking, auto makers are investing in their most profitable product, gas-engine SUVs, and there is not enough support to foster the growth of EV sales in the near future. Sales are therefore expected to slump in the coming months.
Apart from a few delays on EV launches in North America, the timelines in China and Europe are unlikely to change because of Covid. While EV global sales are quite flat this year, overall, BloombergNEF’s annual report has provided a bright future for the sector, which may start to see the light at the end of the Covid-tunnel.