World electric vehicle market in flux US electric vehicle market inflection point likely

The surge in the electric vehicle market is closely linked to policy support and technological advances in various countries. In response to climate change, major economies have set their own carbon-neutral targets, and many countries are promoting the development of the electric vehicle industry and green transformation as a focus for sustained economic recovery. In the European Union, countries have launched huge subsidies, and car batteries are regarded as a top priority; in the United States, not only technological innovation remains active, but also the leading role of market innovation and new consumer concepts is worthy of attention. In the United States, not only is technological innovation still active, but market innovation and new consumer ideas are also noteworthy. In the face of the surging world market for electric vehicles, the real competition is just beginning.

If we were to pick the hottest investment sector today, it would be electric vehicles. Some experts have even asserted that the inflection point for the global development of electric vehicles has arrived, and the world is beginning 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, the Chinese market sold about 500,000 units, Europe 450,000 units and the US sales more than doubled. By the end of 2020, the global fleet of pure electric and hybrid vehicles will be around 11 million, with around 5 million on China's roads, around 1.77 million in the US and around 570,000 in Germany. PwC forecasts that by 2030 there will be more than 17.4 million new electric vehicle registrations in these three markets, increasing the share of total vehicle sales from 4.6% today to nearly 27%.

The explosion in the electric vehicle market is linked to policy support and technological advances in various countries. To combat climate change, major economies have set their own carbon neutral targets, and the development of new energy sources and the reduction of fossil fuel consumption have become key tools. Driven by multiple factors such as developing a green economy and reducing energy consumption, many countries are promoting the development of the electric vehicle industry and achieving a green transformation as a focus point to drive sustained economic recovery.

The "surge" in the EU's electric vehicle market in 2020 is a cause for great concern. Electric vehicle sales will exceed the 1 million mark, a threefold increase compared to 2019; Germany's electric vehicle market will have the highest growth rate in the world, at 264%. Some institutions predict that by 2035, electric car sales will account for 67.4% of the European car market.

One of the key underpinnings of the EU's "surge" in the electric vehicle market is the huge subsidies, a strategy that has even risen to the national level.

For example, Germany has increased subsidies for the purchase of new energy vehicles, with consumers purchasing pure electric vehicles and plug-in hybrids under €40,000 receiving a government subsidy of €6,000 and €4,500 per vehicle respectively, an increase of 50%; models costing more than €40,000 will receive an incentive of €5,000 and €3,750 per vehicle respectively.

The French government has provided billions of euros in bailout money for the automotive industry. Car owners who replace older cars with high carbon emissions with new or used cars that meet current carbon emission standards can receive thousands of euros in subsidies.

The UK government will invest £2.8 billion to build charging pads and expand battery production to promote electric vehicles on a large scale. To meet the environmental goal of zero emissions, the UK will bring forward the ban on fuel cars and vans to 2030.

In addition, to ensure that Europe has an independent and complete industry chain, European car companies are placing their bets on car batteries. In 2019 alone, the scale of planned investment in automotive batteries in Europe is around €60 billion, covering the entire supply chain from materials, batteries, assembly and recycling. As European Commission Vice-President Marlos Sefcovic said, "We are creating a new industry in Europe, we are creating a whole new ecosystem." According to Bloomberg forecasts, Europe's share of global electric vehicle battery production will rise to 31% by 2030.

Let's look at the US.

Firstly, there could be an inflection point in the US electric vehicle market.

Green energy and electric vehicles are an important part of the US government's policy to combat climate change, and the Biden administration has promised to invest billions of dollars in electric vehicles. Among the many companies that have made impressive gains are Tesla; General Motors, which will build a complete ecosystem and join forces with FedEx; and Apple, which has unveiled plans to build a car and may look to partner with car companies such as Hyundai and Kia. Almost every major company has flocked to the electric car industry to squeeze in. The hot investment market has also ignited American enthusiasm for electric vehicles.

Secondly, the leading role of innovation and new consumer ideas in the US market is noteworthy.

A case in point is Facedrive, a New York-listed company. The company has conquered the American consumer with a simple but effective model. When customers need a ride, they can choose to hail a conventional car or an electric one. Once the order is complete, Facedrive's platform algorithm deducts a portion of the fare and uses it to plant new trees and offset the carbon footprint. "You take a taxi, I'll plant a tree" - an innovative consumer concept that is popular with young millennials. It is fair to say that Facedrive has found a way to participate in sharing the fruits of the rapid development of the future electric vehicle market.

There is another subscription service that is even more interesting. It allows people to "enter" a virtual showroom of electric cars and select the top models of their choice for a monthly subscription fee. Numerous studies have shown that in the future, consumers will place more importance on "access" to private cars than on "ownership" and that customers will no longer have to spend tens of thousands of dollars on cars. In a sense, the consumer attitudes of the younger generation will ultimately determine what happens in the automotive industry and in what direction it will transform.

Today, the world economy and society are undergoing profound changes, and people's lifestyles and consumer attitudes are undergoing the biggest transformation in centuries. Looking ahead, smart cities will accelerate the popularity 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 surging world electric vehicle market, the truly fierce competition has only just begun