Electric Vehicle Tipping Point, has it been reached?, Electric Vehicle News Bitesize
Electric Vehicle Tipping Point, has it been reached?, Electric Vehicle News Bitesize

Electric Vehicle Tipping Point, has it been reached? Subscribe to Electric Vehicle News Bitesize Podcast for FREE!

Electric vehicles have reached an important crossroads in advanced economies, a new study shows. For the first time, more people want electric cars than combustion engine cars.

After decades of hype, perceptions about electric vehicles are finally starting to change. While consumer and corporate lobby groups have long been hostile to the idea, a growing body of research shows that drivers no longer distinguish them as “different”.

Now, a study backs up those claims with sales data. On the basis of the study, where 40% of UK sales in 2021 are related to electric or hybrid vehicles, this is expected to rise to 49% by the end of the year. With sales of new combustion engine cars set to take effect later in the century, UK consumers may end up investing more in electric cars than other cars.

The survey of 13,000 people in 18 countries shows that while this represents progress in the UK’s Electric Vehicle sector, it is still below the global average. EY found that by the end of 2022, around 52% of new car sales globally are expected to be electric or hybrid vehicles, with 20% of these going to be “full electric” electric vehicles, compared with 19% in the UK.

Randy Miller, EY Global Advanced Manufacturing & Mobility Leader said, “These findings truly mark a tipping point in the global car-buying market. For the first time since EY teams have been collecting this data, more than 50% of consumers across the globe indicate that they want an Electric Vehicle. The speed of this change has also been eye-opening, with a rise of 22 percentage points in just two years.”

Electric Vehicle Tipping Point.

Consumers in Italy, Spain and Norway in Europe and China, South Korea and Singapore in Asia-Pacific are expected to have the greatest demand for electric vehicles. In contrast, however, market sentiment in North America is expected to lag significantly behind the rest of the world, with below-average Electric Vehicle purchase intentions in the U.S., Canada and Mexico. The U.S. in particular is a stumbling block for the industry, with less than a third of consumers showing interest in electric vehicles of any kind.

Part of the reason may be due to access to infrastructure. With the U.S. political system stalled and the U.S. struggling to update one of its critical infrastructures, consumers will find it much harder to use charging stations, even if consumers there are more comfortable with Electric Vehicles — given cost and range concerns. The UK, by contrast, has gone to great lengths to design and launch Electric Vehicle charging stations – both to ensure they have the infrastructure needed to make a viable purchase, and to implicitly promote “futuristic” technology to consumers.

Despite these challenges, demand for electric vehicles around the world may now be growing faster, Miller claims. For example, they will continue to play a role in making internal combustion engines more expensive as global oil prices rise. And then, of course, there’s the environmental issue, which remains at the top of the motivating factor.

Concluding, Miller noted, “Consumers are becoming increasingly socially and environmentally conscious, and they’re willing to pay a premium to meet their environmental standards. It is now up to the industry to meet this demand. If manufacturers are not aware of this trend already, they’re behind the curve and they need to catch up fast.”  

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Electric Vehicle Tipping Point, has it been reached?, Electric Vehicle News Bitesize
Subscribe to Electric Vehicle News Bitesize Podcast for FREE!