The European electrified vehicle market looks set to reach its tipping point later in 2020, resulting in an accelerating rate of sales.
As the COVID-19 crisis created havoc in automobile sales throughout the world, the electric vehicle segments held up comparatively well in the second quarter of 2020. It now appears that e-mobility will be one of the few winners to emerge from this crisis.
This is particularly true of Europe, where EV sales remained virtually unchanged from the equivalent quarter of last year. As a result, the fleets of European car manufacturers look increasingly well placed to comply with the average CO2 fleet emission target of 95 g/km.
With factories having been shut for an extensive period due to lockdown measures, there will be some delay before European production can satisfy the existing order backlog – while waiting for new demand. At that point, probably later in 2020, EV sales in Europe are likely to reach their tipping point, accelerating more rapidly due to increasing product availability and the beneficial impact of recently implemented government incentives. Regional differences in EV market performance are becoming ever more salient. Regulation, mobility habits, and product offerings are following entirely different paths in each region.
PwC Autofacts® and Strategy& have analyzed e-mobility sales worldwide in the second quarter of 2020.