Electric vehicle sales have been rising for a few years now, and the steady incline in sales reported from 2020 shows no sign of slowing down any time soon.
RAW Charging has delved into EV sales data, their popularity boom, how this influx has come about and how this increase may affect the electric vehicle supply chain.
Electric vehicle sales are on the up.
Business is booming in the EV market, which means it’s the perfect time for business sectors to get ahead of the competition and ready their premises for the arrival of even more electric vehicles in the not-so-distant future.
Electric car sales sky-rocketed exponentially in 2020 by 186% before enjoying a record-breaking year of sales figures in 2021, impressive when you consider a post-Covid market that was down almost 30% compared to pre-pandemic statistics.
In total, a staggering 930,000 plug-in cars, 520,000 BEVs and 405,000 PHEVs are currently registered in the UK (figures from July 2022, data source: SMMT).
EV boom expected as petrol ban looms.
Industry experts predict that EV purchases will only continue to accelerate as we approach the proposed petrol and diesel ban in 2030 concerning new vehicle sales.
With this in mind, there’s arguably never been a better time to invest in an electric vehicle. By the end of 2022, experts expect EV car sales to eclipse those of popular petrol alternatives such as diesel and hybrid diesel vehicles.
Manufacturers move to capitalise on the meteoric EV rise.
With this increase in popularity comes much more choice. Gone are the days when the only widespread electric vehicles came from Nissan, Mitsubishi and Toyota, with their Leaf, Outlander and Prius models, respectively.
Electric vehicles are well and truly here in 2022, with significant luxury manufacturers such as BMW, Jaguar, Mercedes and Volvo (to name a few) offering plenty of EV options in their vast vehicle arsenal. Then, of course, there’s Tesla – a company with all its chips on electric vehicles, but it’s a smart bet. The Tesla Model 3 was the best-selling EV in 2019, the year of its introduction to the market.
It doesn’t stop there either; if you’re partial to a supercar, the glitterati of motorsport has stood up and taken notice of the EV boom. Though it’s unlikely that they’ll completely leave combustion engines in the rearview mirror, there’s an exciting amount of electric and hybrid supercars leaving the hallowed walls of the world’s motoring elite.
Tesla (mentioned above) offers the Roadster – a hypercar that will achieve 0-60mph in an eye-watering 1.9 seconds – while the likes of Lotus, Porsche, Pagani, Koenigsegg and even Lamborghini are all waiting in the wings with much-hyped designs.
With demand comes supply – are electric vehicle prices being pushed too high?
As with any product, the balance of supply and demand is delicate, even in healthier economic environments. However, as things stand, the economy’s current state and EV ownership increase has resulted in a price increase concerning both new and used electric vehicles.
There are multiple reasons for this, but one major factor is the market price of lithium – the main component in EV batteries. One megatonne of lithium carbonate is now priced at £58,800 compared to £27,619 last year, a staggering increase in cost. However, that’s not all; nickel and aluminium prices (two other primary raw materials used in manufacturing) have more than doubled.
Another factor is, of course, fuel prices. There’s widespread concern regarding the cost of living, with energy costs affecting how we heat and power our homes and fuel costs impacting how much we can afford to spend on filling our vehicles.
Naturally, this issue has increased EV sales, with many drivers looking to get a head start on rising fuel costs and invest in an energy-efficient vehicle that will save them money in the long run. Unfortunately, whether new or used, this spike has directly impacted the price of electric cars.
Rising costs and scarcity of such materials have resulted in a dramatically reduced EV supply. In turn, this means that customers are experiencing much longer lead times, while EV prices have increased to ensure that dealerships can survive the impact.
The future is uncertain, but it’s still electric.
Supply chains and price increases aside, there’s still no sign of EV sales slowing down, and as with any fluctuation in any market, prices will eventuallysteady and fall. However, one thing that seems less likely to slow down is our consumption of fossil fuels and energy and the effect this has on our planet.
More and more people and business sectors are becoming aware of this; for businesses, in particular, the EV boom is a fantastic opportunity to increase their ESG credentials. As such, the need for more electric vehicles, fleet purchasing and the subsequent need for more electric vehicle charging stations will only increase.
Electric vehicles are set to take over the market, but is your daily life or place of work prepared with future-proof, dependable EV charging solutions? RAW Charging will conduct a free survey of your location (or locations), assessing the feasibility of your site and providing an in-depth and honest consultation regarding any installation and equipment costs.