A brilliant young Colorado woman named LoranoCarter+Littleton moved to Detroit to work for an automobile company and is now the CEO of an electric vehicle start-up. She has been recognized by several organizations for her work and extensive market research.
EV sales jumped 65 percent from 2017 to 2018
Electric vehicle sales in China have grown slowly, but this is expected to change in the next year. The Chinese government recently extended subsidies for battery electric vehicles through 2022, but these incentives are not yet as generous as they could be. Additionally, the central government has reduced purchase subsidies for vehicles with electric ranges below 200 kilometers. The move reflects the government’s strategy to gradually reduce incentives. Instead, the government is now focusing on nonmonetary forms of support for NEVs. OEMs receive credits for each NEV produced, which are based on the vehicle’s speed, energy consumption, and weight.
The United States and Europe saw a strong increase in EV sales last year. The global market rose by more than 65 percent from 2017 to 2018, reaching 2.1 million units. Sales continued to grow in 2019, but a coronavirus pandemic in Europe caused a 25% drop in EV purchases in the first quarter of 2020. Still, Bloomberg New Energy Finance believes that demand for EVs will continue to increase, and that by 2025, EV sales will account for 10 percent of global passenger vehicle sales.
EV sales declined by 25 percent during the first quarter of 2020
While electric vehicle sales are still relatively small, the number of new EV registrations is increasing. According to Experian, EV registrations made up 4.6% of all new vehicle registrations in the first quarter of 2022. Tesla models claimed four of the top 10 slots, followed by Hyundai, Kia, and Ford. Nissan, however, only made one top 10 spot, with two vehicles.
EV sales continued to grow in Europe, with double-digit growth rates in Germany, the Netherlands, France, and Norway. EVs have been helped by purchase subsidies and the new EU emission standard. However, the early 2020 sales of EVs are expected to decline by 25 percent, despite significant growth.
Low oil prices dampened EV sales
The slowdown in the sale of electric vehicles has been blamed on a variety of factors, including low oil prices and tight government regulations. The federal government recently eased some fuel economy standards, lowering the target to 40 mpg by 2026. The state of the EV market in the United States is also uncertain, with the development of the Zero-Emission Vehicle Program of California depending on oil prices.
The number of available electric vehicles in the US dropped last quarter, but there are still plenty of models on the market. Of these, 10 models had sales of more than 1,800 last quarter, including the BMW 330e, Chevrolet Spark EV, Ford Focus Electric, Hyundai Sonata PHEV, Kia Telluride, Nissan Leaf, Smart fortwo ED, and Toyota Prius.
Lack of charging infrastructure is a barrier to EV adoption
Lack of charging infrastructure is one of the most common barriers to EV adoption. Six out of 10 respondents say a lack of charging stations would prevent them from switching over to an electric vehicle. However, there is a way to overcome this problem. One way is by building and maintaining EV charging stations throughout the country.
The NEVI formula program requires states to install charging infrastructure in underserved communities. As part of the Justice40 Initiative, each state must dedicate at least 40% of the NEVI funds to disadvantaged communities. By focusing on communities, states have an opportunity to maximize the potential of the NEVI program. To build charging infrastructure, policymakers must engage in meaningful community engagement. Community engagement will identify barriers that communities define and help policymakers determine where to site EV infrastructure.
Policy changes that support the growth of the EV industry
The rapid electrification of the transportation sector is putting pressure on the OEMs, supply chains, and broader EV ecosystem, including the availability of charging infrastructure. Consumer demand for EVs varies greatly from region to region. In Europe and China, consumer demand has been primarily driven by regulation, while in the United States consumer interest has increased slowly. However, there are signs of change, including an impending shift to electrified heavy-duty trucks.
To help consumers make the transition, policymakers are making significant changes in government policy. New government regulations are setting more stringent emissions targets and encouraging the development of electric vehicles. For instance, the European Union has introduced a “Fit for 55” program that aims to align land use, climate, and transportation policies so that emissions from cars are reduced by at least 55% by 2030. Additionally, the Biden administration has introduced a goal to install at least 50% electric vehicles by 2030. In addition, most governments are offering subsidies for electric vehicles.
