STY Magna Electric Vehicle Market Road

The Electric Vehicle Market and Why You Should Enter It Right Now!

E-mobility is in the process of becoming a dominant force in the vehicle market. Knowing about current trends and developments regarding electric vehicles (EVs) is paramount for every new player looking for success in the electric vehicle market.

The right timing for e-mobility has come – this is a statement that has become more and more true. The main reasons why electric vehicles have become an attractive and competitive option in the past few years are clear: battery electric vehicles (also known as BEVs) are increasingly becoming cost competitive within current emission standards.
graphic The Electric Vehicle Market, EV sales Share, cars MAGNA

Favorable financial circumstances have been a big stimulus to create awareness and demand for electric vehicles: the fact that more and more countries are providing tax incentives and grants, combined with rising fuel prices and a growing concern about air quality and resource depletion has made the EV market more attractive than ever.

The electric vehicle market booms. This is why many established manufacturers and large automotive brands are shifting their strategies towards electric drives for their own vehicles – especially in passenger cars.

Additionally, this offers the opportunity for numerous  new entrants to the automotive world. They often enter the EV market with innovations and niche ideas enriching product variety and providing a continuous motion towards newer and better e-mobility solutions. The electric vehilce market is a competitive environment for sure, but one with constantly growing numbers and ample opportunities for success.

It's this article's goal, to give an overview of the trends in the automotive industry, the growth of the electric vehicle market, EV statistics, and market share.

 

Graphic Global electric vehicle stock by region, 2010-2020 MAGNA

THE MARKET SHARE OF ELECTRIC VEHICLES IS EXPECTED TO RISE TO OVER 35 % by 2030

picture graphic Consumer and governement spending on electric cars MAGNA

First, there's one big question to ask: what percentage of cars are electric? According to the IEA's Global EV Data Explorer in 2020, global electric vehicle sales were reported at 5% – it's anticipated that this number will increase to over 35% in 2030. Global market shares are expected to increase rapidly, especially in Europe and China, but to a lesser degree in the US. A total of 12 million EVs were in use globally in 2020 with all numbers continuing to show exponential growth (Global EV Outlook 2021). 
In addition, there's a definitive increase in the amount of money being spent on electric cars, especially by consumers. The numbers from the Global EV Outlook 2021 show that in the last two years alone there's been an impressive increase: while in 2018 consumers spent around 70 billion USD on electric vehicles, this number has risen to 120 billion USD in 2020. 

China has established itself as the biggest market for e-mobility. However, it's more difficult for new entrants from abroad to gain a foothold in the strong centralized Chinese market.

Generally though, the EV markets in North America, Europe, and China currently show the most potential. Other regions, such as India and Africa, have not yet reached significant numbers to make investments advantageous and thus their development needs further monitoring in the 
upcoming years.

WHAT'S NEXT?

Knowing about the EV market in general is only the foundation for realizing an automotive vision. New entrants planning to enter and potentially establishing themselves within the EV market need to know exactly what the vision for the product is and what the market in which they wish to sell it looks like. It's recommended to conduct a large-scale market study containing an analysis of competitors, brand positioning, vehicle performance and pricing, and a forecast of sales volumes as a basis for any further development of the vehicle. The reason for this is to have a solid business model that incorporates organizational matters, the acquired knowledge and data, and the specifics of the vision for the planned vehicle. No matter which country the new automaker wants to focus on or what the vehicle specifics should look like, now is the time to start. Because even five years from now, the electric vehicle market will be on a completely different level of competition. The rapid growth of market participants and rising sales numbers speak volumes about the future of the electric drive.

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Picture of Wolfgang Wrann

Wolfgang Wrann

Wolfgang Wrann is Market Intelligence Specialist at Magna’s Complete Vehicles Group. He has been with Magna for more than 10 years and holds a degree in marketing.

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