Electric vehicles sales have been booming despite the strains in supply chain due to the pandemic and the slowing economy. The number of electric cars on the world’s roads by the end of 2021 was about 16.5million, triple the amount in 2018.
In fact, the business has been steadily rising. According to a report released by the International Energy Agency this week, in 2020 the global electric car stock hit the 10 million mark, a 43 percent increase over 2019. Battery electric vehicles (BEVs) accounted for two-thirds of new electric car registrations. China, with 4.5 million electric cars, has the largest fleet, though in 2020 Europe had the largest annual increase to reach 3.2 million.
Even though the first part of 2020 saw conventional and overall new car registrations falling, about 3 million new electric cars were registered in 2020. The global electric car sales share rose 70 percent to a record 4.6 percent in 2020. For the first time, Europe led with 1.4 million new registrations while China followed with 1.2 million registrations and the United States registered 2,95,000 new electric cars. India increased electric bus registrations by 34 percent in 2020.
The predictions in this path are also rosy. According to a news report research firm BloombergNEF has predicted that plug-in passenger vehicle sales will soar to 20.6 million in 2025, much higher than its 14 million forecast just a year ago, mainly due to faster uptake in China. All types of EVs —two- and three-wheelers, buses, passenger and commercial vehicles— are together already displacing 1.5 million barrels of oil a day, and should displace almost 2.5 million barrels daily by 2025.
In the path to net-zero, EVs are playing a crucial role. It’s only a matter of time before logistical challenges around EVs are met leading to faster adoption.