Could COVID-19 positively impact future EV sales?

Covid-19 may have decimated many industries, but research by Cornwall Insight shows that the battery electric vehicle market may be one bright spot. 

Research into the Society of Motor Manufacturers & Traders (SMMT) vehicle registration data by Cornwall Insight shows Battery Electric Vehicles (BEVs) in 2020 have already grown 76.1% on the whole of 2019.

SMMT recorded the lowest September car sales this century at 328,041 vehicles, down 4.4% on September 2019. Despite this, BEV September registrations reached 21,903 vehicles, almost double the previous record of 11,694 vehicles in March 2020.

Katie Hickford, an analyst at Cornwall Insight, said, “During COVID-19 lockdown there has been a backlog of already ordered vehicles that will have contributed to this increase. It is also likely that EV sales have been bolstered over the summer months by pent-up demand.

“However, this is not the only factor allowing us to see such a growth in BEV sales, with the Benefit in Kind company car tax change, making BEVs more financially attractive.

“The market has also seen new EV models become available this year, including the Tesla Model 3, the Vauxhall Corsa-e and VW’s ID.3, improving customer choice. Cost parity with internal combustion engine (ICE) vehicles has also continued to improve, led by falling lithium-ion battery prices.

“Some initial research from AA found that EVs may be a popular choice with those wanting to maintain the improvements in air quality brought about by lockdown. It is possible that COVID-19 could positively increase consumer demand impacting EV sales.”