The world's electric vehicle market is surging

   Weng Donghui

  The blowout of the electric vehicle market is closely related to the policy support and technological progress of various countries.

In response to climate change, major economies have set their own carbon neutrality goals. Many countries will promote the development of the electric vehicle industry and achieve green transformation as the focus of driving sustained economic recovery.

In the European Union, countries have introduced huge subsidies, and car batteries are regarded as the top priority; in the United States, not only technological innovation is still active, but the leading role of market innovation and new consumer concepts is also worthy of attention.

In the face of the turbulent world electric vehicle market, the real fierce competition has just begun.

  If you want to choose the hottest investment area today, it is none other than electric vehicles.

Some experts even assert that the inflection point of the global development of electric vehicles has come, and the world has begun to enter the era of electric vehicles.

  According to the latest statistics from the International Energy Agency, in the first quarter of this year, global sales of electric vehicles increased by 140% year-on-year.

Among them, sales in the Chinese market are about 500,000 vehicles, 450,000 in Europe, and sales in the United States have more than doubled.

As of the end of 2020, the global population of pure electric and hybrid vehicles is about 11 million, and about 5 million are driving on China's roads. There are about 1.77 million in the United States and about 570,000 in Germany.

PricewaterhouseCoopers predicts that by 2030, the number of new electric vehicle registrations in these three markets will exceed 17.4 million, and its share of total vehicle sales will increase from the current 4.6% to nearly 27%.

  The blowout in the electric vehicle market is closely related to the policy support and technological progress of various countries.

In response to climate change, major economies have set their own carbon neutral goals, and the development of new energy sources and the reduction of fossil fuel consumption have become key means.

Driven by multiple factors such as the development of a green economy and reduction of energy consumption, many countries regard the promotion of the development of the electric vehicle industry and the realization of green transformation as the focus of driving the sustained economic recovery.

  In 2020, the EU's electric vehicle market "surges by leaps and bounds" aroused great concern.

The sales of electric vehicles exceeded the 1 million mark, an increase of three times compared with 2019; the growth rate of the electric vehicle market in Germany is the highest in the world, as high as 264%.

Some agencies predict that by 2035, electric vehicle sales will account for 67.4% of the European auto market.

  One of the key supporting forces for the "rapid progress" of the EU's electric vehicle market is huge subsidies, and this strategy has even risen to the national level.

  For example, Germany has increased its subsidies for the purchase of new energy vehicles. Consumers who purchase pure electric vehicles and plug-in hybrid vehicles of less than 40,000 euros can enjoy government subsidies of 6,000 euros and 4,500 euros respectively. The subsidy amount is An increase of 50%; models with a price of more than 40,000 euros can receive 5,000 euros and 3750 euros per vehicle respectively.

  The French government has provided billions of euros in bailouts for the auto industry.

If car owners replace old cars with high carbon emissions with new or used cars that meet current carbon emission standards, they can get thousands of euros in subsidies.

  The British government will invest 2.8 billion pounds to build charging piles and expand battery production to promote electric vehicles on a large scale.

In order to meet the environmental protection goal of zero emissions, the UK will advance the ban on the sale of fuel cars and trucks to 2030.

  In addition, in order to ensure that Europe has an independent and complete industrial chain, European car companies have placed their bets on car batteries.

In 2019 alone, Europe's planned investment in automotive batteries is about 60 billion euros, covering the entire supply chain from materials, batteries, assembly and recycling.

As the Vice President of the European Commission Maros Sevkovic said: “We are creating a new industry in Europe, and we are creating a new ecosystem.” According to Bloomberg’s forecast, Europe will have a global share of electric vehicle battery production by 2030. China’s share will rise to 31%.

  Let's look at the United States again.

  First, an inflection point in the US electric vehicle market may appear.

  Green energy and electric vehicles are an important part of the US government’s climate change policy. The Biden administration has promised to invest billions of dollars in the field of electric vehicles.

Among many companies, Tesla has achieved impressive results; General Motors will establish a complete ecosystem and join forces with FedEx; Apple has also announced plans to build cars, and may seek cooperation with Hyundai and Kia. Waiting for auto companies to cooperate.

Almost all large companies are flocking to squeeze into the electric car industry.

The fiery investment market has also ignited Americans' enthusiasm for electric vehicles.

  Secondly, the leading role of American market innovation and new consumption concepts is worthy of attention.

  A typical case is Facedrive, a company listed in New York.

The company conquered American consumers with a simple but effective model.

When customers need a free ride, they can choose to call a traditional car or an electric car.

After the order is completed, Facedrive's platform algorithm will deduct part of the car fare and use it to plant new trees to offset the carbon footprint.

"You take a taxi, I plant trees"-this innovative consumption concept is deeply loved by young millennials.

It can be said that Facedrive has found a way to participate in the rapid development of the electric vehicle market in the future.

  There is also a subscription service that is more interesting.

It allows people to "enter" the virtual exhibition hall of electric vehicles and select the top models they like by paying a monthly subscription fee.

Numerous studies have shown that in the future, consumers will pay more attention to "access" rather than "owning" a private car, and customers will no longer need to spend tens of thousands of dollars on a car.

In a sense, the consumer concepts of the younger generation will ultimately determine what will happen and in what direction the auto industry will transform.

  Today, the world economy and society are undergoing profound changes, and people's lifestyles and consumption concepts are also undergoing the biggest changes in centuries.

Looking to the future, smart cities will accelerate the popularization of electric vehicles, and cross-industry and cross-sector integration, including driverless electric vehicles, will become a new growth point for electric vehicles.

In the face of the turbulent world electric vehicle market, the real fierce competition has just begun.

Weng Donghui