The Future Of Electric Vehicles

The collective global effort towards a carbon free future has certainly fuelled demand for electric vehicles around the world. Global electric vehicle sales increased by 65 per cent in 2018 from a year earlier. It is believed that electric vehicle sales will account for 10 per cent of the total sales of passenger vehicles globally by 2025. The percentage will rise further to 28 per cent by 2030 and 58 per cent by 2040 according to Bloomberg New Energy Finance. With guidance from your economics tutor Singapore in your economics tuition Singapore, discuss the importance to reduce carbon dioxide emission.

Electric Vehicle Sales

From 2019 to 2027, the size of the global electric vehicle sales is expected to grow at an average rate of 20 per cent per year to eventually reach US$803 billion in 2027, almost five times that of 2019. China is currently the world’s largest market for electric vehicles. Despite the Covid-19 pandemic which had dampened the sales of most consumer goods, sales volume of electric vehicles in China reached 125,000 in September 2020, almost doubling that of the previous year. Electric vehicle sales in the United States increased by 80 per cent in 2018 from the year before. However, the pace of growth slowed down in 2019 due to the lack of government support from the then Trump administration. You may consult your economics tutor Singapore in your economics tuition Singapore class about the government support measures before and during Trump’s term. In contrast, the Chinese government has pledged government subsidies for electric vehicle manufacturers till 2022. In addition, it has also announced a US$1.4 billion investment in building charging stations across the country.

In Europe, sales of electric vehicles have increased significantly as well. Overall sales of electric vehicles increased by a sterling 44 per cent in 2019, prior to the Covid-19 pandemic. Germany and the Netherland had seen the most significant growth in demand for electric vehicles, followed by France and Norway. Same as China and the United States, the demand for electric vehicles in Europe is dependent to a large extent on the government policies in favour of electric vehicles. For example, the introduction of the new emission standard in the European Union, which sets the carbon dioxide emission limit at 95 gram per kilometre, has further boosted the demand for electric vehicles in the European Union. For more such examples, you may sign up for economics tuition Singapore with a reputable economics tutor Singapore. Mr Edmund Quek is widely regarded as the best economics tutor Singapore. His economics tuition Singapore centre is conveniently located within five minutes’ walk from the Bishan MRT Station.

Chinese Companies Plunge Into Electric Vehicle Business

The ballooning demand for electric vehicles has contributed to outstanding performance of electric vehicle manufacturers around the world, most notably, Tesla, a global frontrunner in this industry. To learn more about Tesla and its founder Elon Musk, you may attend Mr Edmund Quek’s economics tuition Singapore. The economics tutor Singapore is renowned for incorporating real world events into his economics tuition Singapore. Mainly due to its sky-rocketing stock price, its founder Elon Musk surpassed Amazon’s Jeff Bezos earlier this year to become the world’s richest man.

Indeed, with increasing environmental awareness of consumers and steadfast government support around the world, the prospect of electric vehicle market is very promising. This has attracted smartphone giants such as Huawei, OPPO and Xiaomi to hop on the bandwagon. In consultation with your economics tutor Singapore in your economics tuition Singapore class, discuss its possible implications on the electric vehicles market in China. On 30 March 2021, Xiaomi’s founder Lei Jun announced his plan to venture into electric car business. A subsidiary dedicated to the smart electric vehicle business will be set up and a total of US$10 billion will be injected over the next 10 years. Another smartphone giant Huawei also confirmed its interest in snatching a share of the booming electric vehicle business. Huawei will invest US$1 billion in developing systems for electric vehicles using artificial intelligence in collaboration with carmakers in China. OPPO is the latest smartphone giant, rumoured to be moving into electric car-making. Though it has yet to be confirmed by OPPO’s founder Chen Mingyong, the market shall not be surprised by OPPO’s diversification into electric car-making given its recent interest in investing in self-driving tech firm Zongmu Technology.

Linda Geng

Click to Read Next Post

economics tuition, back to homepage

Economics Tuition Singapore @ Economics Cafe
Principal Economics Tutor: Mr. Edmund Quek