Electric vehicles show more resilience than conventional cars during Covid-19 shock

BloombergNEF, a business intelligence firm, has suggested in its latest market study for electric vehicles ( EV) that the sector is expected to ape renewable energy generation by growing in significance during the Covid-19 crisis following a significant hit on deployment figures.

In today ‘s latest annual update to its Long-Term Electric Vehicle Outlook survey, BNEF expects EV sales will fall by 1.7 million units this year, interrupting a decade of steady annual growth due to the coronavirus pandemic.

However, the analyst expects the Covid-19 impact on conventional car sales to be even more dramatic, with this year’s global sales dropping by 23 per cent, leading to a rise in EV market penetration just as renewable energy gained ground in fossil fuel power generation during a pandemic that saw a slump in electricity demand.

Following Covid-19 lockdowns, BloombergNEF expects a short-term rebound in conventional car sales but expects EVs to continue to gain ground in the longer term, with electric cars forecast to supply 58 per cent of new passenger car sales by 2040. At that point, 31% of cars on the road and 67% of municipal busses, 47% of two-wheeled vehicles and 24% of light commercial vehicles would be electric.

Comment here