Electric vehicles (EVs) play a critical role in a zero-carbon future. While there are pros and cons to the adoption of EVs they are deemed to be a good first step towards global sustainability efforts. The science behind EVs is well established: They are significantly more efficient than combustion engines where most of the battery is used to power the car. In cities especially, EVs waste far less energy. What consolidates the case for the use of EVs is the fact that pollutants such as particles and nitrogen oxides are not emitted by EVs. Also, compared to conventional cars they emit far less noise. The adoption of EVs shall have a significant impact on the overall air quality.
With a heightened awareness about ecological preservation and sustainability, the number of electric vehicles registered worldwide increased dramatically in 2020, and this trend is expected to continue over the next decade, according to the International Energy Agency (IEA) . Based on the IEAs Global Electric Vehicle Outlook report, let’s take a look at key statistics pertaining to the adoption of EVs.
Source: EV Volumes
More EVs on road
Cars accounted for ten million of the EVs adopted. Under current energy and environment policies, the cumulative number of hybrid vehicles, buses, coaches, and trucks is expected to reach 145 million by the end of the decade, accounting for 7% of all road transportation.
By 2030, with far more aggressive climate programmes and pollution reduction goals, there may be up to 230 million hybrid cars on our roads, accounting for 12% of all road traffic. Motorcycles and mopeds were excluded from the calculations.
An article by Firstpost highlights that the Indian government recently approved the Production Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) battery manufacturing on Wednesday, with an expected cost of Rs 18,100 crore. Infrastructure is going to play a critical role in the adoption of EVs in India.
EV purchases soar during the pandemic
Despite a 16 percent reduction in global car prices, electric vehicle registrations increased by 41% in 2020. Last year was a watershed moment for the industry, when China was overtaken by Europe as the global electric car market’s epicentre for the first time. Registrations in Europe more than doubled to 1.4 million from 3 million globally, although they rose to 1.2 million in China.
According to a Frost & Sullivan report, global electric vehicle (EV) sales will reach 34 million in 2025. According to the forecast, the number of EVs adopted will cross 121.2 million in 2030 and 636.7 million in 2040.
Government and Consumer spend on EVs has increased
Consumers spent 50% more on electric vehicles in 2020, totaling $120 billion, thanks to an increase in the amount of different EV vehicle models available on the market and dropping battery costs.
Governments also continued to encourage the move to EVs, spending $14 billion on direct purchase incentives and tax deductions – a 25% rise year-on-year. Before the pandemic, many countries strengthened key policies such as CO2 emission standards and zero-emission vehicle (ZEV) directives. An article by the Economic Times highlights that India increased tariffs on EVs and their components, including the vital and costly lithium-ion batteries to foster domestic manufacturing. This and other policies are aimed at boosting domestic demand, improving efficiency, and lowering prices of EVs in India in the long run.
Future Outlook
Although progress is being made, electric vehicles only account for 1% of the global fleet at the moment. Important obstacles to the widespread introduction of electric vehicles do exist. Inadequate charging facilities, as well as a scarcity of suitable electric cars in many industries, such as heavy industry, continue to limit adoption. Key stakeholders in electric vehicles including automobile manufacturers and governments will have to come together to drive its further adoption.
