Pandemic could impact electric vehicle growth

According to Bloomberg’s New Finance Report, global sales of electric vehicles will fall by 20 per cent in 2020 to 1.7 million as the COVID-19 pandemic halts consumer spending.

Electric vehicle sales will account for 58 per cent of new passenger car sales globally by 2040 and 31 per cent of the whole car fleet, according to Bloomberg’s research It will also make up 67 per cent of all municipal buses on the road by that year.

However, long-term electrification of transport is projected to accelerate in the coming years, while internal combustion engines set to drop by 23 per cent.

Colin McKerracher, head of advanced transport for BNEF, said: “The COVID-19 pandemic is set to cause a major downturn in global auto sales in 2020. It is raising difficult questions about automakers’ priorities and their ability to fund the transition. The long-term trajectory has not changed, but the market will be bumpy for the next three years.”