EV production is set to boom
Insights — April 2021
Global electric vehicle production is set for a generational boom
Electric vehicle production is set to accelerate following the announcement of aggressive targets from two of the world’s leading automobile manufacturers (with a combined share of c.20% of global automobile production) to rapidly increase electric vehicle production.
Global electric vehicle sales continued growing rapidly in 2020, up 43% year-over-year to c.3.2 million fully-electric and plug-in hybrid electric vehicles (notwithstanding total vehicle sales falling c.20% due to the COVID-19 pandemic – prior to the pandemic, the consensus was for c.90m global vehicle production in 2020).
As it stands there are not very many models to choose from however this is changing with an estimated 150 new electric vehicle models expected to be released in 2021 and a staggering more than 500 in 2022.
The trend has reached the mainstream with General Motors setting a target to phase out the production of internal combustion powered vehicles by 2035. Prior to this commitment, only lesser marques such as Volvo and Jaguar had committed to being fully electric. Meanwhile in Europe, Volkswagen is targeting 70% of its namesake brand’s European sales and 50% of U.S. and China sales to be electric vehicles by 2030.