Trends in Electric Vehicles Markets

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Tesla (TSLA) stock rose more than 12% last month to settle at $1,025, driven by two pieces of positive news: Hertz just placed a record order of 100,000 Tesla for its fleet, and Morgan Stanley auto analyst Adam Jonas recently increased his price forecast on Tesla to $1,200 per share.

Tesla (TSLA) crossed the $1 trillion milestone on the strength of its one-day increase. That market valuation is less than half that of Apple (AAPL), the world’s most valuable corporation with a market capitalization of $2.5 trillion, and Microsoft (MSFT), the second most valuable firm with a market capitalization of $2.3 trillion. Google parent Alphabet (GOOG), worth $1.8 trillion, and Amazon (AMZN), valued $1.7 trillion, are also members of the trillion-dollar club.

Source: Google Adwords

According to a new analysis of Google search statistics, online searches for electric automobiles have surged by 61% globally since last year.

As more people become aware of their viability, this trend is certain to continue, and nearly every major manufacturer is committed to electrifying their vehicle portfolio – with electric car ranges and capacities expanding almost exponentially as new models hit the market.

Source: IEA

After a decade of rapid growth, the worldwide electric car stock reached ten million units in 2020, a 43 percent increase over 2019 and a 1% stock share. In 2020, two-thirds of new electric car registrations and two-thirds of the stock were battery electric vehicles (BEVs). China had the largest fleet, with 4.5 million electric vehicles, while Europe had the highest yearly rise, reaching 3.2 million in 2020.

The economic consequences of the Covid-19 pandemic had a profound impact on the global market for all sorts of automobiles. New automobile registrations fell by roughly a third in the first half of 2020 compared to the previous year. Stronger activity in the second half somewhat countered this, resulting in a 16 percent year-over-year reduction. Despite the fact that conventional and total new automobile registrations are declining, worldwide electric car sales share increased by 70% to a record 4.6 percent in 2020.

About 3 million new electric cars were registered in 2020. For the first time, Europe led with 1.4 million new registrations. China followed with 1.2 million registrations and the United States registered 295 000 new electric cars.

Source: IEA

Consumer Spending

In 2020, consumers spent USD 120 billion on electric car purchases, up 50% from 2019. This translates to a 41% increase in sales and a 6% increase in average costs. The increase in average pricing reflects the very fact that Europe, where prices are on the average above in Asia, accounted for a bigger share of latest electric registrations. The global average BEV pricing in 2020 was over USD 40 000, with a PHEV costing around USD 50 000.

The International Energy Agency predicted that by 2030, the number of electric automobiles, buses, vans, and heavy trucks on the road will reach 145 million. According to the International Energy Agency’s Global Electric Vehicle Outlook, if governments step up their efforts to meet international energy and climate targets, the global electric vehicle fleet could reach 230 million by the end of the decade. Two- and three-wheeled electric cars are excluded from both forecasts.

Source: IEA

Government Spending

In 2020, governments around the world spent USD 14 billion on direct purchase impulses and tax relief for electric vehicles, over 25% from the previous year. Despite this, the share of government impulses in total EV spending has been declining, falling from around 20% in 2015 to 10% in 2020.

The whole rise in government spending passed in Europe, as numerous governments responded to the pandemic- convinced profitable extremity by enforcing incitement programmes to stimulate electric auto sales. As the qualifying restrictions for incitement programmes tensed in China, government spending declined.

The implementation of price caps in Europe and China, i.e., no subventions for motorcars with prices beyond a particular threshold, was a significant invention in subvention schemes. This could explain why the average price of an electric auto in Europe and China is falling BEV cars sold in China were 3% cheaper in 2020 than in 2019, while PHEV buses in Europe were 8% cheaper.

Top four countries in Europe with the most EV’s per person

After analysing the number of electric vehicles to the population, Norway appeared as the obvious winner of the electric vehicle battle, with only 18.9 persons per electric vehicle. This excellent figure is attributable to the government’s array of incentives and advantages, which include reductions in the purchase price and road tax. Electric vehicle owners in Norway also save at least 50% on parking and toll road fees.

The Dutch government is offering considerable incentives to buyers and owners of electric vehicles to encourage the electrification of the national vehicle fleet. This is especially the case for BEVs, which are the government’s zero-emission transportation strategy’s main focus. People who buy or lease a new battery electric passenger car can get €4,000 back from the government. The amount is €2,000 in the case of a used battery electric automobile. Furthermore, BEV owners obtain exemptions from the one-time registration tax and annual ownership taxes, or a decrease in the case of PHEVs.

A further analysis of Google search statistics, online searches for electric automobiles in countries with significant incentives to buyers and owners from government have surged by almost 50% since the last year for Norway and 40% for Netherlands.

  • Norway – 18.9 (people per electric car)
  • Iceland – 72.6
  • Sweden – 76.7
  • Netherlands – 141.4
Source: Google Adwords