EV Sales – The outbreak of the Novel Corona virus (COVID-19) is having a major impact on all aspects of society, including the automotive industry.
EV sales, which in 2019 surpassed 2.2 millions, there could be sharp decline approx. 40 – 45 % this year, experts said in a recent report. The reason: the travel bans in response to the corona virus and a looming recession, which has dampened people’s appetite for new purchases, especially costly ones such as a new car.
The effect of the outbreak on the world’s biggest EV market—China—are already visible. EV sales ( electric car) there fell by 54% by the end of January when the epidemic really took off in the country. February sales figures, according to Wood Mac, are expected to be even worse, with a decline of 90%. EV sales in Europe had been on an impressive upswing, up by 121% on the year in January.
Now, three months later, while China is slowly resuming its economy despite a second wave of infections knocking on its door, Europe, the second biggest market for electric cars, is in the struggle of the corona virus and the outlook for the continent’s economies is nothing short of horrible.
Travel bans, national lockdowns, tens of thousands of victims, disruptions across supply chains, and internal political divisions are shaking the EU. As a result, the eurozone economy could shrink by more than 10% in the first half of the year, a survey among economists made by Bloomberg has suggested. Even Norway’s economy, normally strong and outside the eurozone, is set for a contraction this year as a result of the pandemic. And Norway is the strongest EV market in Europe, so that’s bad news for the industry.
In further bad news, the UK, another big EV market, could see its GDP contract by as much as 35% because of the pandemic. Germany’s economy is expected to book a 9.8% contraction in the second quarter of the year alone, and the list is expanding.
China saw a decline in EV sales last year, for example, long before the virus came on the stage, because it reduced subsidies.
With the worst recession since the Second World War, it seems unrealistic that Europe sticks to its EV priorities and continue subsidizing them, even increasing the subsidies in order to make them more affordable for a recession-stricken population. The immediate future of EVs looks somewhat murky.[wp-reviews]
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