Electric cars in 2021

Market potential seen in electric cars.

The halt on mass transportation imposed on regions affected by the pandemic has pushed consumers to find alternative modes of travel. And while EVs are a competitive choice, a historically low consumer confidence arising from the current economic distress has drastically affected sales. Data from market research website Research and Markets show a decline in the electric car market, from $533.4 billion in 2019 to 515.8 billion in 2020 – a CAGR of -3.31 percent. However, insights from energy sector research company Bloomberg New Energy Finance (BNEF) suggest that buyers in the market for electric cars shouldn't be discouraged. Here's why.

Improved batteries, more charging infrastructure, new markets and prices that compete with internal combustion engine vehicles are some of the factors seen to drive robust demand for electric cars. As per BNEF's study, EVs are expected to hit 10 percent of global vehicle sales by 2025, rising to 58 percent by 2040. Moreover, OEMs are optimistic on the global market outlook for EVs. General Motors chairwoman and CEO Mary Barra is confident that the company's $2 billion investment in six domestic assembly plants for EVs will "underscore the success of our vehicles today, and our vision of an all-electric future". General Motors recently unveiled their new line of all-electric supertrucks, the Hummer EV, further signaling the company's optimism regarding the EV market.