There has been a drop in car sales amounting to a maximum of 88% by the Society of Motor Manufacturers and Traders (SMMT) in the previous months due to the coronavirus pandemic. JATO Dynamics, which is SMMT’s counterpart in Europe, are also witnesses of the drop.
Though the car sales show a drop from the previous year, EV sales are conveying a rise amounting to 20% in the UK for SMMT and 15% in Europe by JATO. These values are the exact opposite that the market shows. Additionally, the two firms show a market growth rate for the Evs despite the collapse of the market.
Tesla TESLA Model 3 is the leading EV in sales thrashing conventional cars and hybrids in the UK. It is the first brand to beat all car types in Europe in terms of sales. This model is also thrashing the renown Renault Zoe, Ford Focus, VW Golf, and Renault Clio. All this is attributable to their pliant direct sales model that has overcome the lockdown impediments. Additionally, this EV model was long-awaited by consumers and EV fans.
Model 3 takes advantage to capture executives who occasionally travel for meetings and events. The car accounts for that executive comfort that the midsized business owners desire as they stroll from one activity to another. The model covers approximately 12000 miles that an average executive is likely to make yearlong. This mileage is also cost-effective compared to conventional cars, given the only requirement for the vehicles is charging and not fuel.
The premium European brands with immediate effect are redesigning their SUVs to Evs to curtail their 40% yearly sales and enjoy what the Evs have been experiencing. However, the SUVs are more expensive than their equivalent fossil-fuel cars. For instance, as Audi E-Tron prices at £60000, the equivalent Q7 is at £54000. But the Model 3 is now going for £40000 conveniently saving the executive £15000 for using a Mercedes C220d SE for three years.
The astonishing market performance of Evs despite the coronavirus pandemic is an indicator of the hunger for these cars and therefore attracting government incentives. Consequently, the UK government is investing in charging stations and the Battery Industrialisation Centre to recuperate from the pandemic. On the other hand, the EU is dissipating Euros into EV manufacturing and emission-free trains. The EV sales during the epidemic are a sign of hope that the automobile industry can survive challenging times and recuperate with positive margins.
Finally, the EVs are the next right asset for the car manufacturers to venture in. If they can hybridize the current vehicles and make new EVs, they are sure to recover their profits.