The decline in EV sales is a result of of global factors including the ongoing US-China trade wars, Brexit and the revamped US–Mexico–Canada Agreement (USMCA), according to research Frost & Sullivan.
The US, which is the second largest EV market in the world, is expected reduce sales and production of new EVs by 1.1% to 17.1 million units compared to 2018.
The decrease in EV sales and production is due to the rise in shared mobility and innovative mobility streams.
Vehicle subscription services will become more popular, with 0.5 million vehicles likely to be signed on in 2019.
However, China’s new EV sales are expected to grow, as well as of Brazil and Russia’s by 8% and 55, respectively.
Electric vehicles will enjoy higher growth opportunities in emerging markets.
For greater growth opportunities, OEMs and established market players need to:
- Integrate digital technologies; There is significant revenue potential in leveraging digital devices for online car sales, in-car purchases, and mobility solutions.
- Offer alternative forms of vehicle ownership, including subscriptions and fleet services.
- Develop connected, electrified, autonomous, and modular vehicles, as they are expected to be in demand among Gen Z customers.
- Invest in regional capacity and expertise.
- Focus on unique business models such as subscriptions, new financing methods, and Mobility-as-a-Service (MaaS).
Viroop Narla, Team Leader, Business Strategy, Mobility, said: “Electric mobility options will continue to rise in popularity, especially electric ride-sharing and micro-mobility solutions, in developed markets.
“As the number of mobility services surge in 2019, OEMs and other industry participants will look to harness the data for more optimized sales and after-sales solutions.
“Electric vehicle growth will increase further owing to model launches and stringent government regulations. Approximately 6.7 million xEVsare likely to be sold in 2019, bolstered by strong sales in China. Africa, the Middle East, Latin America, and South Asia will be the next biggest markets for xEVs due to a strong encouragement by local governments in the form of incentives and subsidies for both automakers and car buyers.”
For further information on this analysis, please visit: http://frost.ly/3el