If you were to focus purely on market valuations, you would be justified to believe that the dominant factor in car sales is now electric cars. Indeed, despite having just a portion of the revenue, earnings, or capital spending, the $835bn market valuation of Tesla alone exceeds all of its IC (internal combustion) engine rivals together. Yet the fact is more difficult. Electric cars only make up a comparatively small market share — just 3% as of last year, as per McKinsey — but that’s rapidly changing. During the next half-decade, there are hundreds of electric cars due to be launched, with Volkswagen alone aiming to sell thirty models by 2025.
Government investment in relevant infrastructure is also growing. On Monday night, President Biden declares how he intends to substitute the state fleet with electric cars and generate 1 million new employments such as charging in similar companies. If we go into some new study at Schmidt Automotive Research, the acceleration of battery-powered cars, both pure electric as well as hybrid, is nowhere more apparent than in the Western Europe in 2020. But let’s take a brief peek at a few of the year’s details we all want to forget about. To begin with, one figure continues to stand out above everything: Western Europe is currently the world’s largest electric car market, with the hybrid sales as well as the plug-in vehicles surpassing China’s by about 90,000 devices in the year 2020, for a record of 1.33 million cars sold.
Under the aggregate estimate, pure Electric Vehicle sales doubled to around 727,927 models year-on-year, with the remainder being comprised of hybrids. And, to top out stuff, the total market share climbed to 12.4%. Incentives were also significant, although it’s risky to put these amazing sales down to cheap new models like VW’s ID3, Renault’s Zoe as well as Kia’s Niro. European regulation requiring a lowering of the average emission of new vehicles’ carbon dioxide in the fleet of automakers to 95 grams of CO2 per kilometer took effect in the year 2020. Automakers must have behaved. By December, as per Schmidt, almost one in every four cars purchased was a plug-in car.
Tesla was the only car maker to see its sales decline over the year, by around 10.7 percent, to be exact. And it’s the fastest-growing demand for electric vehicles in the world. Still, of course, mitigating situations remain. Here is Schmidt’s justification: “With its long sales channels to the Europe, the Californian business was potentially more affected by COVID shipping as well as production interruption. In December, this document can confirm that, as per Statistik Austria results, Tesla models from China appeared in Europe with each and every fifth Model 3 recorded in Austria made in China.