The impact of COVID‐19 on the market prospects of electric passenger cars

Abstract

The outbreak of COVID‐19 pandemic has caused changes worldwide in a dimension that has not been seen since the Second World War. This pandemic and the measures taken to moderate the negative consequences have affected almost all aspects of our life. Transport has been one of the most affected sectors. In general, the global car market is very sensitive to macroeconomic conditions. This applies especially to electric vehicles, which are still very dependent on financial support measures. A combination of travel restrictions, unemployment, and low oil prices could have significant impact on electric vehicles. This paper provides an overview of the development of electric vehicles and corresponding policies covering the period before and during the COVID crisis. Policy framework and the future development of the annual gross domestic product per capita have a significant impact on diffusion of battery electric vehicles. However, since the crisis is still ongoing, the full impact of the COVID crisis on mobility is still to be seen but the findings so far show rather favorable signs for electric mobility. This article is categorized under: Cities and Transportation > Electric Mobility

The Growing Preference for Electric Vehicles from a Political and Economic Point of View

“…As Ajanovic indicated, car sales of the conventional ICE vehicles were about 17% lower than in 2019, but the sale of EVs was about 45% higher than in previous year. Furthermore, she pointed out that in Europe, electric car sales in 2020 increased by about 130% [11].…”

“…The increase in electric vehicle purchases could be explained for a variety of reasons during the time of COVID 19. As of pre COVID 19 situations, governments, like the aforementioned ones, are in favor of supporting the research of electric vehicles as a way to cut down on carbon and greenhouse emission, and all the funding the government provided contributed to lower battery cost over the years [11]. The lower battery cost meant it was lower to produce an electric vehicle, further meaning that it would be cheaper for consumers to be able to afford one.…”

“…As Ajanovic stated, politicians in countries have recognized EVs as a good technological alternative to gasoline powered cars in reducing global warming [18]. The consumer sector and demand for electric vehicles also has a promising future, as shown in the trend of buying electric vehicles during COVID-19 consumers remained optimistic about electric cars, even in the midst of an economic crisis [11]. This further shows that consumers believe electric vehicles are the better alternative for gasoline-powered cars, as gasoline-powered cars cost more and more to maintain.…”

Factor Influencing Consumer’s Adoption of Electric Car in Malaysia

“…Over 3.2 million electric vehicles were registered worldwide in the first half of the year. The number of electric vehicle registrations in Europe has significantly increased, mostly as a result of stimulus plans launched by European governments and financial incentives such as tax reductions [3]. The surge in EV sales has consequently led to a notable increase in the production of lithium-ion batteries for EVs.…”

Research on the Influence of COVID-19 on Overall Sales of Cars and Cars in Different Categories in China

“…Other studies have found that people are shifting from using public transportations to private transportations in the US due to COVID [8], this might be similar in China in short term but in long run, people will gradually go back to their routine and use public transportations more. Previous study has found that electric cars was negatively impacted by COVID in short-term [9], but in this study COVID is not considered as an individual category, due to limited data.…”