The past few years have seen the United States make commendable steps towards achieving its carbon emission goals. More people than ever are purchasing zero-emission electric vehicles (“EVs”), and several American automakers have unveiled several electric vehicle models, with some of them planning on going fully electric within the next few decades. In addition, the largest EV maker in the game is based in the U.S. However, America’s nascent EV sector pales in comparison to China, which is the world’s largest electric vehicle market, and recent research shows that the Chinese EV sector is growing at a faster rate than America’s.
A recent Pew Research Center study published at the end of May found that only 7% of American adults own a battery electric vehicle (“BEV”) or a hybrid, with 53% of adults who considered themselves knowledgeable about electric vehicles saying they would consider buying an EV as their next vehicle when the time comes. EV registrations are on the rise, with nearly 1.8 million electric vehicles being registered in the country as of last year. According to the International Energy Agency, that is more than three times the EVs registered by Americans in 2016. However, most of America’s electric vehicles are concentrated in major metropolitan areas.
On the global scale, EVs in the U.S. represent just 17% of the registered vehicles with China holding the top spot with more than 4.5 million EVs, or 44%, followed by Europe, which has 3.2 million EVs, or 30%. So, while the American EV sector has indeed seen admirable growth in the past few years, China is miles ahead. From 2016 to 2020, electric vehicle sales in the U.S. grew by 17% while China saw a 36% increase in sales within the same period. Interestingly, Europe, which has been fiercely competing with China in terms of market share, saw a 60% annual growth rate from 2019 to 2020.
The past few years have seen a decline in EV sales in the U.S. Plug-in hybrid sales dropped by half from 2018 to 64,300 in 2020, while EV sales have reduced by 3.2% from 2018 to 231,000 BEVs in 2019. Largely due to the coronavirus pandemic, EV sales dropped to 296,000 units in 2020.
On the other hand, 1.3 million electric vehicles were sold in China in 2020, representing 41% of all EVs sold on the globe, with forecasters predicting that 1.9 million electric vehicles are expected be bought in China this year. Compared to the U.S. where EVs have made up a mere 2% of all vehicles sold within the last three years, EV sales in China made up 6.3% of all car sales in 2020.
Still, the electric vehicle industry in America is poised to grow over the coming years, with some experts predicting that it will reach 6.9 million EV units by 2025 up from 1.4 million in 2020. If President Joe Biden’s new infrastructure plan is successful, it will invest billions of dollars in subsidizing electric vehicles and developing a countrywide network of public charging stations, giving the American EV industry a massive boost.
One way of viewing the currently limited number of electric vehicles on American roads is that massive opportunities exist for sector players, such as Net Element (NASDAQ: NETE), that step up to meet the electric mobility needs of motorists.
NOTE TO INVESTORS: The latest news and updates relating to Net Element (NASDAQ: NETE) are available in the company’s newsroom at http://ibn.fm/NETE
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