Between 2020 to 2021, the world electric automobile (EV) market has more than doubled, soaring from 3 million by 2020, to 6.6 million by 2021, according to International Energy Agency (IEA). The market accounts for 9% of automobile transactions, and EVs have been growing rapidly in importance. But are car manufacturers able to keep up with the pace?
The Push for Electric Cars
Government agencies across the globe have set high-level goals for the future of cars by using electric vehicle charging equipment. Although Europe and China remain at the top of overall EV adoption, however, it is the U.S. continues to push. The IEA estimates that there are around 16 million EVs on American roads today.
As with all businesses, automotive manufacturers also make predictions regarding the number of vehicles they’ll need each year to meet the public’s demand. Tyson Jominy, VP of data and analytics at J.D. Power Tyson Jominy, J.D.Power’s vice president of data and analytics E&E News that they have required to “blow up” their forecasts… since the rate of adoption is getting faster.”
The U.S. has seen new production sites for electric vehicles all over the country, particularly within Tennessee and Kentucky, Kentucky, in which Ford Motor Co. and SK Innovation are stationed – an indication that these companies are betting on the future of EVs.
When there was speculation regarding how the United States could meet President Biden’s demand for 50% of all car sales to go electric in 2030, these companies and others, including General Motors Co., see the plan becoming a reality.
Alongside the billions of dollars spent worldwide for direct purchase incentives and EV tax credits, IEA states Americans will need more choices than small cars. Manufacturers are ready to respond.
What will trigger the Switch to Electric Vehicles?
SUVs make up around 60% of total sales of vehicles, with larger pickups and EV trucks also getting momentum in the electric vehicle space with Ford’s F-150 Lightning, the Chevy Silverado, and Dodge Run, according to E&E. Corporate Electric Vehicle Alliance Members are planning to buy over 375,000 brand new electric vehicles until 2026. More than 95% of respondents to the survey stated that if they could find a vehicle that had the specifications and capacity they needed, they’d consider switching.
Even though cities like Colorado Springs are seeing a slowdown in the speed at which car manufacturers can respond to consumer demand and shortly for EV purchases, it appears that it will only continue to grow.