European market continues to lead the way in EV growth

Record sales figures through the first five months of 2020 has electric vehicle (EV) manufacturers confident that demand for EVs will continue to grow as the global markets look to recover from the COVID-19 pandemic.

Earlier this month, Hyundai Motor Group announced that global EV sales had increased by nearly 58 per cent so far in 2020, with 40,182 units sold.

This increase was led by a push into the European market, with the all new Hyundai Kona Electric and Ioniq models proving to be popular.

Automotive Analyst at GlobalData, David Leggett, believes the increase in EV popularity witnessed across the European market will only continue to improve, with many manufacturers taking note of the upturn in sales and investing more resources in electric technology accordingly.

“Before this crisis, we knew that tighter CO2 emissions rules in Europe as well as new model offerings – such as Volkswagen’s ID.3 – would help lift numbers this year,” said Leggett.

Leggett also pointed out the incentives on offer for purchasing EVs in European countries in particular as a reason for the growing sales.

“In addition, we are now seeing crisis support programmes from national governments that will help to lift electric car sales still further.

“In France, for example, new incentives mean that a Renault Zoe electric car listed with a price tag of €32,000 could be available at just €20,000.

“That kind of purchase price reduction is sure to stimulate demand just as more supply from a range of brands comes on stream.

The efficiency and cleanliness of EVs compared to fossil fuel burning vehicles is also expected to remain a key influencing factor for EV buyers, according to Leggett.

“Electric cars could also benefit from a wider perception that they are ‘cleaner’ than conventional engine cars, as they can have their batteries charged at home, with no need to visit a gas station or handle a pump.”

Source: GlobalData | Electric cars shaping up as growth pole as recovery builds, says GlobalData

10 June 2020

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