50% of Passenger Vehicles Will be Electric by 2040

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50% of Passenger Vehicles Will be Electric by 2040

On a global scale, passenger electric vehicles shot up from 450,000 to 2.1 million in 2019. According to A BloombergNEF report, there was a brief slump in 2020, sending the figure down to 1.7 million.

Total Electric Vehicle Sales Worldwide

Hybrid Car Sales Account for 16% of Toyota 2020 Sales, Up by 23% YoY Brandspurng2
Source: BloombergNef

By 2025, however, it is estimated that sales will reach 8.5 million as new markets open up and battery prices drop. The figure is projected to rise to 26 million by 2030, more than doubling to 54 million by 2040.

Demand for raw materials for electric car batteries set to rise further Brandspurng
Photo by Andrew Roberts on Unsplash

According to the report, by 2040, 50% of passenger vehicles will be powered by electricity. As of 2020, the global penetration rate stands at 2.7%. It is set to increase to 10% by 2025, further to 28% by 2030 and reach 58% by 2040.

The penetration rate in markets like China and Europe is much higher than the global average. However, it is dragged down by emerging markets where adoption is still limited.

China will continue accounting for the lion’s share of global EV sales, reaching 54% in 2025. But as adoption becomes more widespread, the share will drop to 49% in 2030 and further down to 33% by 2040.

Despite the impressive growth in electric vehicle sales, there is a risk that the market could become crowded. BloombergNEF estimates that there could be up to 500 models of EVs available globally by 2022.

During the year 2020, Toyota Motor North America (TMNA) posted sales of 2.11 million vehicles. Compared to its 2019 performance, it marked a decline of 11.3% in sales volume.

For the 21st consecutive year, it was the top manufacturer globally when it comes to alternative vehicle sales. These include all-electric, fuel cell and hybrid vehicles

According to the research data analyzed and published by Sijoitusrahastot, in the hybrid vehicle segment, Toyota sold a total of 337,036 cars during the year, an increase of 22.7% year-over-year (YoY). Compared to the total sales volume, hybrid sales accounted for a 16% share.

Toyota Hybrid Car Sales in the US in 2020

Hybrid Car Sales Account for 16% of Toyota 2020 Sales, Up by 23% YoY Brandspurng
Source: Toyota

Hybrid Car Sales Account for 16% of Toyota 2020 Sales, Up by 23% YoY

With the inclusion of the new Venza, Mirai and Sienna models, the company now has a total of 14 alternative vehicles on its lineup.

Though hybrids have been around for about two decades, they are experiencing a gradual resurgence. Toyota is not the only automaker keen on capitalizing on the trend.

Volkswagen reported having sold a total of 190,500 hybrid plug-ins in 2020, marking a 175% increase over 2019.

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BMW hybrid sales totaled 148,000 during the year, marking an increase of nearly 40% compared to the previous year. Comparatively, its fully electric vehicle sales soared by 13% and overall vehicle sales plummeted by 8%.

Its lineup of alternative energy vehicles stood at 13 models by the end of 2020. The automaker plans to increase the number to 25 by 2023.

Daimler’s Mercedes Benz sold a combined total of 160,000 hybrids and fully electric vehicles. Compared to the previous year, this was a 228.8% increase. Its share of the vehicles rose from 2% in 2019 to 7.4% in 2020 and is set to grow to 13% in 2021.

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Electric Vehicles Accounted for 54.3% of Norway Auto Sales in 2020

Alternative energy vehicle sales thrived in key markets during the year. In China, the top electric vehicle (EV) market globally, EV sales reached an estimated 1.3 million, up by 8% year-over-year (YoY) according to SP Global.

These included 1.1 million full EVs as well as 251,000 plug-in hybrids. In the month of December 2020 alone, sales of these new energy vehicles soared by 50% to 248,000 units.

SP Global projects that in 2021, EV sales could soar by up to 40% to reach 1.8 million units. In contrast, total vehicle sales could rise by 4% to 26 million units during the year. Growth in China’s electric vehicle sales is expected to remain stable in the coming years, to reach 6 million by 2025.

On the other hand, in Europe, EV sales surged to 500,000 in the first ten months of 2020, compared to 354,000 in the whole of 2019. Sales of plug-in cars, including hybrids, crossed the 1 million thresholds during the year.

The upsurge comes amid tightening regulations on vehicle emissions. By 2030, new cars that run solely on diesel or petrol will be banned in the region.

These regulations drove remarkable growth in Norway, where EVs accounted for 54.3% of all new cars sold during 2020. To highlight the massive growth, their share of the country’s auto market was 42.4% in 2019 and only 1% 10 years ago.

Total Electric Vehicle (EV) Sales in Norway in 2020

Hybrid Car Sales Account for 16% of Toyota 2020 Sales, Up by 23% YoY Brandspurng1
Source: The Guardian

It is now the first country in the world where sales of new energy vehicles have surpassed those of hybrid, petrol and diesel-powered engines. In December 2020, these vehicles captured a 66.7% share of the country’s overall auto market.

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