Electric vehicles: what you need to know
Recent electric vehicle sales have surpassed all expectations, moving EVs from niche to disruptor. With technology constantly improving and economies of scale set to kick in as production is ramped up, the road ahead looks good for a transport revolution.
Electric vehicles in numbers
1 million Tesla EVs
were sold globally in 2021
25% of cars sold
in Germany in 2021 were EVs
Zero ICE cars
to be sold in China by 2035
58% of all car sales
globally will be EVs by 2050
What's being done to encourage motorists to buy electric cars?
Countries representing over 50% of global car sales have expressed intent to be carbon neutral and phase out ICE vehicles, although the deadlines for their ambitions vary. However, as adoption advances, the carrot of government grants is being dropped in favour of the stick. Many of the world’s major cities have restricted zones for high polluting vehicles. Meanwhile, stringent fuel efficiency standards and challenging emissions targets for new cars also aim to drive people towards EVs.
Is the growth of electric vehicles moving quickly enough?
That depends on your point of view. Sales are set for impressive and sustained growth in Europe, APAC and North America, so that we project battery electric vehicles (BEVs) to account for 58% of light vehicle sales globally by 2050. However, we estimate the lack of easily available, low-cost electric vehicles will limit EVs to only 16% of light vehicle sales in the rest of the world by the same date. With average vehicle lifespans around ten years in developed countries (and longer in emerging and frontier markets), It won’t be until 2045 that electric cars surpass total ICE vehicles on the roads globally.
What does the road ahead look like for electric vehicles?
Despite some issues, the outlook is bullish.s. Supportive policy changes, increased long-term investment from manufacturers, and shifting consumer sentiment all point skywards for EV adoption. We expect electric car sales to double by 2025, then double again to reach 30 million units globally by 2030. However, even with declining ICE vehicle sales, EVs would need to sell at twice that rate to get the world on a 1.5° C pathway. That would mean sales of 70 million a year by 2030, leading to a global stock of 1.5 billion EVs by 2050.