Electric cars are gradually becoming competitive in some countries on the basis of the total cost of ownership (which includes fuel expenses as well as purchase costs), even if the recent plunge in oil prices has eroded that somewhat. But analysts cautioned “the high upfront investment for consumers – electric car prices are still higher than those of conventional cars,” meaning the electric car market still relies on government support.
New e-car models, financial incentives
Concerning buyers of electric cars are increasingly spoiled for choice. Around 100 new electric car models will become available over the course of 2020; hence, IEA analysts say it is “quite possible that global electric car sales in 2020 will continue their upward trend.”
The Paris-base agency estimates global electric car sales to slightly exceed 2019’s total to reach more than 2.3 million and achieve a record share of the overall car market of more than 3%. This brings up the total number of electric cars on the road worldwide to a new record of about 10 million, around 1% of the global car stock.
Today, electric cars in many markets are subject to a host of incentives and regulatory efforts. Most global electric car sales involve a financial incentive from governments that often takes the form of direct purchase subsidies or tax reductions.
Concerns that the coronvirus crisis might prompt national government to relax fuel efficiency standards have not happened so far. China announced it would extend the purchase subsidies that it had originally planned to discontinue this year until 2022 – albeit at a slightly reduced rate. In addition, the typical electric car buyer in many countries still tends to be wealthier than the average consumer and might be less affected by the economic downturn.