Global EV Sales Rose 160% In First Half, Overcoming Component Shortages And Covid –…

Global sales of electric vehicles increased by 160% in the first half of 2021 from a year earlier to 2.6 million units, according to research firm Canalys, the latest sign of transformation afoot in the global auto business.

EV sales growth topped that of the total global car market, which was up 26%, Canalys said. Auto demand returned as Covid-19 restrictions eased in many markets and makers overcame component shortages, it said. Overall car sales are still below pre-pandemic levels, Canalys noted. 

China remained the world’s top EV market with 1.1 million vehicles sold in the first half, accounting for 12% of sales. In the U.S., where EVs have been less popular, only 250,000 units were sold, accounting for 3% of sales.    “Only 6% of cars sold in 2020 in mainland China were EVs – it will be more than double that for full-year 2021,” said Chris Jones, Chief Analyst and VP, Automotive and Emobility at Canalys.

Tesla’s success in China has led Chinese carmakers to expand their EV offerings. EVs from brands such as Aion, BYD, Li Xiang, NIO and Xpeng are selling well, but Hongguang Mini EV from Wuling is the best-selling model, Canalys said. Success by newcomers has minted new China billionaires, adding to the country’s standing as home to the world’s second-largest number of the world’s richest entrepreneurs after the United States.

Norway remains the global leader for EV adoption at over 80% of new car sales, Canalys said. “Companies are expanding their EV line-ups, offering consumers greater choice. The European Union has set emissions targets for carmakers. Individual European countries offer consumer incentives and have set targets to ban the sale of combustion engine vehicles,” said Sandy Fitzpatrick, VP, Automotive and Emobility at Canalys. “The challenge for the carmakers is keeping up with EV demand during the component shortage crisis.”

“When governments commit to supporting the EV market with incentives, targets, penalties and investment, consumer adoption will increase – but it will not happen overnight, especially in the diverse U.S. market,” said Fitzpatrick, “One of the reasons for the slow uptake of EVs in the U.S. is limited vehicle choice. But carmakers are set to launch the first EVs in the hugely popular pick-up truck segment in the U.S. soon. If they’re successful, the perception of EVs should quickly change.”

See related post:

No Frog In A Well: Alibaba-Backed XPeng Founder Talks About Entrepreneurism

@rflannerychina