Gap in electric vehicle sector still large

Data from the International Energy Agency (IEA) shows that global sales of electric cars rose 75 percent in the first quarter of 2022, bringing the global fleet to 18.5 million. China dominated, selling 3.3 million cars last year, while Europe sold 2.3 million and the U.S. sold just 0.6 million. According to Ben Laidler, global markets strategist at eToro, the constraints are charging infrastructure, trucks, and the rising price of battery materials. It is believed that with current policies, the number of electric vehicles will increase tenfold (to as many as 200 million) by 2030, an increase of up to 30 percent per year. Long term, this is a big increase especially given the recent weakness in the sector's shares.

"Currently, electric vehicles account for about 10 percent of car sales, but their share of the global installed base is less than 2 percent, with decades of strong growth ahead. The direction is being set by Norway, where 86 percent of new cars are electric cars. In contrast, the United States, although it has tightened fuel standards and financed chargers, is lagging behind – by 2030, market penetration will be just 20 percent, although Ford and GM are aiming for 100 percent electric vehicle sales. In Europe, market penetration is expected to be 35 percent, and in China, 45 percent (control of ¾ of global battery production contributes to this result)," Ben Laidler assessed.

(WBJ)