2022 was a big growth year for EVs and saw a considerable 14% of all new car sales belonging to the electric category, compared with 9% in 2021, and only 5% in 2020. Of all these sales, a giant 60% of them took place in China, who are electrifying their vehicles with gusto. European EV sales jumped by over 15% last year, and, in the U.S.A, they went up by a huge 55%.
The story isn’t just one of unimpeded growth, however, because 58% of those questioned in a recent survey said they believed EVs were too expensive. Take, for example, the Hyundai Kona, which was recently being sold at a 51% hike over the equivalent gasoline-drinking model, according to one reckoning. The price difference with regular cars can be prohibitive, particularly in emerging markets. Looking at three developing economies that are, in fact, outdoing the rest in terms of EV adoption – Thailand, India, and Indonesia – we see EVs only made up 3%, 1.5%, and 1.5%, respectively, of total car sales in 2022.
To get a picture of how fast EV adoption will spread in the next ten years is tricky, “given rapid changes in both government policies and the auto manufacturing industry”, says the U.S. Bureau of Labour Statistics. Nevertheless, we’d like to ask: Is the transition to EVs happening quickly enough to save our natural environment? If you have a hand in CFD stock trading with the big EV makers like Tesla, Volkswagen, or GM, take a minute to join us.
When Gasoline Prices Get You Thinking
In the middle of last year, when drivers in the U.S. had to pay as much as $4.20 per gallon of gasoline, Ali Chapman of GarGurus reported that “Gas prices have really pushed shoppers to consider EVs”. This was one of the factors behind last year’s enormous sales growth. Still, it’s an open question how much this dynamic will work to displace regular vehicles from the roads. During the financial crisis of 2008, gasoline prices spiked, and people did seem willing to open their minds to EVs out of necessity. However, when gasoline prices simmered down again, much of that willingness was forgotten as people returned to what was familiar.
Are EVs the Answer?
Even if EV adoption is set to grow exponentially, it’s not clear that this will save the planet. Due to the mining and mineral processing needed in EV production, “it’s not an environmental panacea by any stretch of the imagination”, explains author John Lorinc. Thousands of litres of water are used up in the production of a single electric vehicle. Their tires litter the roads with pollution. And, perhaps most glaringly, proud claims made by EV makers of “zero emission” vehicles ignore the fact that 63% of the electricity needed for those cars comes from coal in the U.S.A.
Down the Road
Nevertheless, it remains true in lots of people’s minds that buying an EV is a logical step in the right environmental direction. A poll, this year, concluded that the number one reason people think of buying an EV is environmental.
Government policy is likely to reinforce the trend. America’s Inflation Reduction Act, for instance, could deliver EVs a 50% market share by 2030. And, significantly, we’ve seen the shares of EV-associated companies outdoing those of traditional carmakers in the last four years. People haven’t lost confidence in the potential of these cars to take the places of regular vehicles on our roads.
On the iFOREX platform, you can engage in stock trading in CFD form with the shares of big EV makers like Volkswagen, Tesla, or Hyundai. It makes no difference whether prices are going up or down. If there is a bullish feeling in the air, there’s the option to make a “buy” deal; “sell” deals are for your more bearish moments.
