Electric Car Sales Remains Immune To The Economic Hit Of COVID-19 Pandemic

A report by the International Energy Agency suggests that the number of electric cars running on the roads this year has already reached 10 million. It is proof that, somehow, electric cars were able to withstand the ravaging of COVID-19 pandemic in the automotive industry. 

Furthermore, it is expected that electric car sales will have a better outcome this year than other conventional vehicles. The current sales of electric cars as of June 2020 is 2.1 million already, which is almost similar to the electric car sales in the same period last year, according to the Global EV Outlook of the International Energy Agency. The data shows that EV car sales this year make up 3% of the total car sales worldwide. 

Meanwhile, the data published in the Global EV Outlook reveals that the passenger car sales will hit a 15% decline by the end of the year. 

It is already clear that the coronavirus pandemic has affected various vehicle markets throughout the globe. It is up to the government and key players to respond to this situation. As of now, their decision to shift to electric vehicles might do them good. 

After all, the global sales for electric cars rose by at least 30% annually in the previous decade, except for 2019. During that year, the sales declined by 6% as the regulatory environment policies have changed in China. But despite this decline, electric cars are still booming. In 2019, electric cars were 2.6% of the global car market sales. 

However, it has to be emphasized that the performance of electric cars in different markets vary. China still remained the biggest market for these electric vehicles in the world. Half of the sales of electric cars in 2019 was derived in China. Specifically, more than a million electric cars were sold that year, which is 2% lower than in 2018. 

Europe is the next biggest market for electric cars. Approximately 561,000 electric cars were sold in the said region in 2019. Meanwhile, the United States accounts for 561,000 electric cars sold in the same year. 

It is expected that electric cars will take up 1% of the global car stock by the end of 2020. However, the report of the International Energy Agency did not affirm that such an outcome is already set in stone. There are several reasons for this. First, the pandemic has no vaccine yet, which means that there are multiple waves coming up. Second, the economy’s recovery rate has been observed to be slow. 

Furthermore, the responses of the government and other involved institutions in dealing with the pandemic will shape the overall plight of electric cars by the end of this year. The way the consumers will emerge from this pandemic could also influence the outcome of this volatile market. 

It has to be emphasized that electric vehicles have a role to play in meeting the environmental objectives of the Sustainable Development Goals, specifically in the aspect of air pollution reduction and climate change adaptation. In 2019, it was believed that 0.6 million oil barrels were used by all the vehicles in the world on a daily basis. It is a staggering number that might have worsened the global pollution for that year alone. 

In the Sustainable Development Scenario of the International Energy Agency, the electric vehicle stock throughout the world grows by as high as 36% yearly. If that’s the trend, then there will be 245 million electric vehicles that will run on our streets by 2030. That’s 30 times higher than what we have right now. 

It is also suggested in the Sustainable Development Scenario that these electric vehicles can lower greenhouse gas emissions by more than half, as compared to the same number of fleet of combustion engine units.