With the shelter-in-place measures in action due to the coronavirus pandemic, most business activities are being rescheduled or canceled. However, Europe is not relenting with its focus on transitioning to clean transportation. The EVs and hybrid car sales as still booming while the other markets are in recess.
The member countries of the European Union are going forward with the transition from ICE cars to electric vehicles. The automakers in these countries have to rethink and start developing EV models of their current ICE cars to attain the set climate change regulations.
On the other hand, the government facilitates this switch by giving subsidies to automakers who manufacture these EVs, thereby making them cheap. Recent reports indicate a rise in the sales of electric cars and hybrids with a subsequent drop in gasoline-powered vehicles’ sales. Nonetheless, this transition is taking longer than expected in the US due to unpredictable regulations.
Despite the closure of exhibition rooms in March and April, the market share for Evs and hybrid cars escalated in the European markets. For instance, Germany, Sweden, and France witnessed an increase of 5%, 15% and 6.5% respectively, in the total sales.
One of the customers in this pandemic period bought a Hyundai Kona Elektro. He narrates that his son is excited to take rides with this new model, thereby abandoning the Mercedes E-Class wagon. The car has a 64-kilowatt-hour battery with a mileage range of 300 miles.
EV buyers are pulled by the incentives on these cars, thereby abandoning the ICE substitutes. For example, an electric vehicle with a face value of $45500 will now value $35400 on the deduction of the incentive.
Currently, there are over 50 models of Evs and hybrids from which the customers can select. Juergen Sangl, an auto dealer, explains that the demand for EVs is escalating at a supersonic rate. Sangl has been dealing with electrics since 2016 after realizing the statistics are shifting to this side of the auto world.
Apart from these government initiatives, customers are excited to purchase EVs as soon as they realize their ranges will be above 200 miles in a single charge. The automakers in the EU have a massive task of enduring that all their models minimize emissions. Therefore, Transport and Environment group estimate that the automakers must ensure EV sales rise by 5 percent to meet this target.
Finally, the US is one of the countries drawing back the world’s efforts to transition to clean transportation. Nonetheless, some companies are thinking ahead with their tools working on the development of EVs for the global market. For instance, the chief executive of General Motors reveals that they have twenty new EVs that will be gracing the market soon.