The COVID-19 pandemic has massively hampered the progress of the global electric vehicle (EV) industry. As a result, the industry fell by nearly 15% in 2020 in comparison to the sales recorded in 2019. Moreover, electric vehicle sales fell to 1.8 million units in 2020 from the 2.1 million units recorded in 2019, and the market recorded a decline of 43% in comparison to the forecast done for 2020 before the pandemic.
This is attributed to the sharp fall in vehicle manufacturing and sales, due to the imposition of lockdowns and restrictions on mobility in several countries. However, the impact of these lockdowns has been less severe on the electric vehicle industry, with the market recording a reduction in its gross value added (GVA) by 14–16% (automobile production) in 2020. China, which is the biggest EV market in the world, recorded a sharp decline in EV sales because of the pandemic.
In the country, the decline in EV sales was the largest in February, with car sales dropping to 16,000 units, and recording a fall of nearly 60% from the number recorded in February 2019. However, the sales picked up sharply during April and reached nearly 80% of the April 2019 number. Furthermore, the sales of plug-in cars were down by 32% in May 2020 in comparison to the previous year.
It is expected that the Chinese EV industry will see an overall fall of 14% in 2020. The COVID-19 impact on the EV industry in the U.S. has been quite severe. The lockdown measures have been hugely unsuccessful in controlling the spread of the virus, and thus, the demand for electric vehicles fell steeply in 2020. However, the industry is exhibiting strong growth in the European region, even during the pandemic.
In many European countries such as the U.K., Germany, Italy, and France, COVID-19 impact on the EV industry has been quite positive, with EV sales rising to more than 145 thousand units in the first four months of 2020, and recording an increment of around 90% from the number reported in 2019. In Norway, EV sales during the first four months of 2020 remained the same as in 2019, as per the observations of the market research company, P&S Intelligence.
In Germany, the government announced increment in electric vehicle purchase subsidies in February 2020. In Italy, the sales of electric cars grew considerably, on account of the system launched in the country in 2019. One major way in which the COVID-19 impact on the EV industry is visible is that it has made many EV market players and industry stakeholders re-examine their plans and strategies and prepare accordingly for the auto industry’s long- and medium-term growth.
Moreover, the sales of EV will shoot up in the post-COVID world, as people will prefer using personal vehicles over shared cabs or public transport. Many major players operating in the electric vehicle industry such as BYD Company Ltd., Tesla, Inc., General Motors Company, and Toyota Motor Corporation are increasingly focusing on taking measures such as conducting regular sanitization of the workstations and within the factor premises, ensuring the delivery of sanitized products, and maintaining social distancing with the dealerships.
