Global electric vehicle sales are on the rise, including major purchases as the industry evolves

TThe electric vehicle (EV) space is constantly evolving, propelled by developments, innovations and policy shifts around the world. This update brought to you by Ideal Power offers a roundup of some of the most eye-catching headlines regarding electric vehicles and the market opportunities associated with them.

This month, we see massive growth in the EV space, both internationally and here in the United States. Additionally, a major deal is planned to expand an EV subscription service that gives its members access to a fleet of models from various manufacturers. .

Electric vehicle sales in China expected to top 6 million in 2022

China is the biggest market for electric vehicles and new estimates suggest it is growing faster than expected. According to projections by the China Passenger Car Association, sales of electric vehicles are expected to more than double this year to exceed 6 million, a revised projection from the 5.5 million sales previously forecast.

Not only is the Chinese electric vehicle market currently the largest in the world, but it is also the fastest growing, far outpacing the US and European markets. This year, the US market is expected to reach 1.2 million new EVs sold, while the EU is expected to reach 3.2 million new EVs sold. In 2021, the estimated value of China’s electric vehicle market was $124.2 billion and is expected to reach $799 billion by 2027.

China’s groundbreaking strides in new electric vehicle sales may not be over yet, either. The China Passenger Car Association added that it may revise this projection to increase it further in the fourth quarter, saying the estimate of 6 million electric vehicle sales was still “relatively conservative”.

California Electric Vehicle Sales Accelerate in H1 2022

California continues to lead the United States in electric vehicle sales and adoption, and the pace is accelerating. The California New Car Dealers Association found that electric vehicle sales accelerated in the first half of 2022, eclipsing the pace of hybrid sales for the first time since electric vehicles arrived in the state. New electric vehicle registrations in California approached 130,000 in the first six months of the year, accounting for more than 15% of all new registrations. Hybrids, by comparison, accounted for around 100,000 new registrations or 11.7%.

Although electric vehicles remain a minority among vehicles on the road, the acceleration of new sales is strengthening the industry in California. Tesla led the way in all new vehicle sales – including internal combustion engine (ICE) vehicles – claiming the top two spots in the state with its Model Y and Model 3. Tesla has sold more than 80 000 electric vehicles in California through the first half of 2022, representing approximately 61% of total electric vehicle sales.

Subscription service EV Autonomy places $1.2 billion order

Autonomy, a subscription service that lets members borrow electric vehicles, placed a major order totaling $1.2 billion with more than a dozen automakers. The order of more than 23,000 vehicles includes purchases from Tesla, GM, Hyundai, Ford, Volkswagen at the top of the list. Other notable manufacturers include electric vehicle startups like Rivian, as well as traditional manufacturers like Stellantis, Mercedes-Benz and Kia. The electric vehicles purchased under the agreement would be delivered in phases starting in the third quarter of 2022 and continuing through the fourth quarter of 2023.

The purchase comes after Autonomy launched with a Tesla-only fleet, previously accepting around 200 deliveries a week from the electric vehicle giant. Under the new purchase agreement, Tesla would continue to be the largest contributor of electric vehicles to the subscription service, delivering 8,300 units through 2023, although the deal also significantly diversifies its fleet. Other major contributors would be GM with 3,400 units, Volkswagen with 2,200, Ford with 1,800, Hyundai with 1,640, Kia with 1,500 and Rivian with 1,000.

“Tesla was definitely the right launch partner for Autonomy given its dominance in the electric vehicle market today,” Autonomy CEO Scott Painter told Electreck in an interview. “With every automaker going electric and so many exciting new products coming to market over the next 6-18 months, we have placed our fleet order and are excited to expand our range of subscriptions. and to make it easier for consumers to go electric.”

Once deliveries of the order are complete, Autonomy will maintain 46 electric vehicle models in its fleet, all of which will be available to subscribers by 2024.

Sales Growth in Major Markets Highlights Strength of EV Space

China is leading the way internationally in terms of electric vehicle sales and California is the cherished market here at home — each is emblematic of the strong growth potential of the wider industry. The establishment of subscription services like Autonomy, and the major boost their deal is giving to EV sales in an already record year, speaks volumes about the future of this industry, even in a declining economy. As Congress evaluates tax credits for electric vehicles in the Cut Inflation Act, additional opportunities may be on the way to increase spending on electric vehicles now and in the future.

For investors, the market opportunity in electric vehicles remains immense. With more sales than ever forecast for 2022 and a growing market expected to reach $1 trillion in value by 2026 (up from $260 billion in 2020), electric vehicles are here to stay, especially as technological innovation strengthens industry value propositions. As consumer spending increases, manufacturers target lower prices, and the federal government seriously considers expanding the electric vehicle charging network, we could finally see electric vehicles gearing up to go mainstream.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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