The Strategist

Wood Mackenzie expects sharp drop in electric vehicles sales

04/13/2020 - 06:14

Electric vehicle sales in the world could fall by 43% to 1.3 million units by the end of 2020, according to a new study by Wood Mackenzie.

Albert Lugosi
Albert Lugosi
In 2019, electric vehicle sales approached 2.2 million units.

One of the factors that will lead to a drop in sales this year is the coronavirus pandemic. The market is also affected by the potential delay in updating fleets due to falling oil prices and the wait-and-see attitude of consumers to buying new cars.

Analysts at Wood Mackenzie note that demand in China will recover to 2019 levels by November 2020, while in Europe it will happen by December. Annual US demand is expected to lag behind the 2019 figure by 30% by the end of this year.

“At the end of January, sales of all cars in China fell by 21% compared to 2019. By February they fell by 80%. Electric car sales suffered more, in January the figure fell by 54%, and in February, as expected, collapsed by 90 %. Electric vehicles accounted for about 5% of sales of all cars in China over the past two years, "the study said.

“At the same time, sales of electric cars in Europe jumped 121% in January, despite a 7% decrease in the overall market. The upward trend continued in February, but the pace was slower than a month earlier,” analysts write.

At the same time, indicators for January and February do not reflect the consequences of coronavirus for two regions.