Recent global economic changes have had a large impact on electric vehicles (EV’s) Market growth. Global Market for EV’s is growing at a rapid rate due to several factors including governmental incentives, changes in fuel prices, and increased demand from consumers. However, there are some areas that are seeing a slower adoption rate and this may lead to limited market size and revenues in the coming years. While these factors affect overall growth, there are certain trends that are expected to accelerate the rate of growth.
The largest impact on the global EV Market can be seen from the increase in manufacturing facility capacity by major EV companies such as Honda, GM, Mercedes Benz, and VW. Over the past two years, global production of EVs has increased by over 30% due to government incentives and expanding markets such as the US, UK, and China. In addition to this, substantial investment has been made in the advanced technology development of battery power packs and other components necessary for high performance and extended-range electric vehicles (EV’s). These factors have resulted in significant growth in worldwide EV’s Market size.
Although future growth is projected to be stronger and more substantial, there are some countries that exhibit a decreasing trend in their overall EV sales. There are several reasons behind this including lack of available funding, unfavorable tax policies, and oversupply in certain regions. In Europe for example, there has been a noticeable decrease in European car sales due to the rise in fuel prices. Other countries facing a diminishing sales growth rate include Japan, Australia, and some developing countries like India. The significant decrease in EV bus sales in these countries will likely be balanced out by an increase in demand and an appreciation of the benefits of electric vehicles.