The news: Global electric vehicle (EV) sales are expected to increase sharply from 3 million units in 2020 to 66 million in 2040, per Bloomberg. EVs would represent two-thirds of passenger vehicle sales by 2040, with Europe and China leading the charge.
EV adoption is expected to surge behind mounting government support and continued carmaker shift to EV and plug-in hybrid vehicles, as well as intensifying pressure to move away from fossil fuels.
EV adoption has spiked: Increased driving range, more body styles, and a wider price range are key factors sparking consumer interest.
In the US, total EV sales in 2021 are up by 119% over 2020.
The takeaway: Cheaper, longer-range EVs in a variety of body styles can propel widespread adoption—but the supporting EV charging infrastructure, as well as tax credits and incentives, may also weigh on consumer’s minds as they decide whether to go all-electric in the near future.
Government policies, particularly in the US, Europe, and China, and automaker commitments toward bringing EVs to the mainstream, are all positive signs—but the outlook is not all rosy—lithium shortages, battery scarcity, and the protracted chip shortage will continue to limit EV sales, at least in the short term.