A new report from analytics firm Frost & Sullivan seems optimistic about the electric vehicle (EV) industry, but there is still some doubt about how strong it will recover from the COVID-19 pandemic.
Throughout the year, the firm expects the EV market to grow 8.6 percent, which is a little less than the initially expected nine percent growth rate. However, the smaller increase should still account for roughly 2.5 million sales if you include both hybrids and EVs, reads the report.
“EV sales will be driven by the implementation of stringent emission norms across countries and global policies favouring the adoption of battery electric vehicles (BEVs),” writes Prajyot Sathe, automotive and transportation industry manager at Frost & Sullivan.
The firm suggests that automakers introduce new EV models to increase market penetration. Beyond just new cars, the firm is also anticipating a boom in battery recyclers and dismantlers as the first big wave of EV batteries begin to deteriorate.
The report also looks at charging as a new trend that companies can capitalize on to make more money to supplement their car sales. This is something that both Tesla and Volkswagen are doing as they compete for EV dominance.
Source: Frost & Sullivan