Sections

ideals
Business Essentials for Professionals



New Research Report Predicts Surge In Sale Of Electric Vehicle For 2021


05/31/2020


New Research Report Predicts Surge In Sale Of Electric Vehicle For 2021
With governments around the world pushing for new programs to encourage consumers to buy battery powered vehicles, there is expected to be a surge in the sale of electric vehicles in 2010, claimed a new report by Cairn Energy Research Advisors, a research firm focused on the battery and EV industries.
 
There will be a 36 per cent growth in the sale of EVs in 2021 globally with more than 3 million vehicles sold in the year which will also be a first for the industry, Cairn estimates.
 
“There’s pent-up demand for electric vehicles,” said Sam Jaffe, managing director of Cairn Energy Research Advisors. “We will see a combination of factors make 2021 an inflection point for the sale of electric vehicles.”
 
The markets in Europe and China are the two major drivers for the growth in demand for electric vehicles in 2021, believes Jaffe. According to Sanford C. Bernstein, the largest market for electric vehicles currently is China and the market saw the manufacturing of one million battery powered models last year.
 
According to Bernstein analyst Mark Newman, number of electric cars manufactured in 2021 is expected to be at least 1.3 million and may even reach 1.5 million if market and demand conditions are favourable.
 
Wedbush analyst Dan Ives raised his price target for Tesla from $600 to $800 saying, “we continue to believe EV demand in China is starting to accelerate with Tesla competing with a number of domestic and international competitors for this market share.”
 
Europe will account for the biggest growth in EV sales next year primarily because of governments in the European Union are committed to lowering carbon dioxide emissions, predicted Cairn Energy Research. Countries such as France have rolled out new incentives to lure people to buy electric cars. He wanted France to become the top producer in Europe of clean vehicles, said French President Emmanuel Macron while announcing a new bonus for people to buy an electric car.
 
Greater sales will be spurred because of a wave of electric vehicle production coming from Europe, Jaffe says. “The European automakers and Tesla are all adding capacity and that will really have an impact starting next year,” said Jaffe. The assembly plant just outside of Berlin of Tesla is set to start production of the Model Y by the middle of next year.
 
The research firm had previously predicted a dramatic increase in EV sales on previous occasions too and many of those predictions in recent years have been too optimistic and significantly dependent on the willingness of people to shift easily from a gasoline or diesel powered vehicle to a plug-in model. 
 
An estimate by J.P. Morgan in October of 2018 predicted that the share of electric vehicles in the total vehicles of the world will be about 4 pr cent by the end of 2020 globally. But depending on what happens the rest of this year, it is more likely that EV sales will account for about 3% of total auto sales globally.
 
(Source:www.cnbc.com)