What is Driving Electric Car Sales in 2020?

Global interest in green economics and climate change has risen to an all-time high as wildfires and natural disasters affect most of the world. This, plus increased profitability and a higher level of social consciousness, has boosted the electric vehicle sector in 2020. 

Electric cars are more popular than ever, and they’re also more accessible and affordable. Families, commuters, and long-distance drivers are building an interest in this tech-heavy automotive sphere.

Learn how the state of the market has impacted this growing industry, and what is motivating consumers to buy electric cars in 2020.

Electric Car Boom

Just a few years ago, electric cars were few and far between on the market. Now, charging stations are provided by most major retailers and commercial shopping centers. E-cars are more accessible and cost effective than ever, and experts expect more than 18 million electric cars to hit the road over the next 5 years in the U.S. alone. 

In a time when convenience is key, electric vehicles provide an unprecedented level of control and mobility. Instead of gassing up miles from home, you can plug your e-car in to charge – just like you would your laptop or smartphone.

Additionally, electric cars can be much cheaper to own over time. Gas-fueled vehicles can cost up to $3,000 for the average commuter. Electric cars, by comparison, cost about $400 a year to charge. 

As an industry, the electric car sector is expected to grow by more than $5 million in the next few years. But, experts predict its global reach to grow exponentially over the next decade. By 2030, there will be an estimated 120 million electric vehicles on the road.

There are more incentives than ever before to opt for an electric vehicle. From 0% financing options to hefty tax breaks, American consumers can reduce their household budgets significantly over time by choosing this option for their next car.

Electric Car Sales in 2020

Performance of Electric vs. Hybrid Cars

Hybrids have also been gaining traction in recent years as more and more manufacturers offer more affordable models. But, consumers can get electric versions of their favorite mass market models at a lower cost in 2020. 

Hybrid vehicles are widely available and more efficient than standard gas-fueled cars, but electric vehicles are becoming easier to acquire, customize, and maintain. Plus, increased consumer demand has led car brands to provide a variety of options that are appropriate for a wide range of lifestyles. 

In general, both car types are equally good options for roadtrippers, commuters, and casual drivers. But, electric-powered vehicles provide drivers with a way to separate from fossil fuels completely by eliminating:

  • Trips to the gas station
  • Oil changes
  • Fuel waste

For those looking for a greener clean-fuel option at a time when climate concern is higher than ever, electric vehicles are the ideal solution.

Electric Car Sales in 2020

Augmentative Reality and Virtual Reality in Electric Car Production

Semi-autonomous driving capabilities are a growing trend within the electric car industry, as pioneered by Tesla among other high-end manufacturers. This function has been largely catalyzed using augmented reality and virtual reality tech.

Enhanced-street view and IoT connectivity improves the car’s ability to communicate with other cars in real time, notifying the vehicle about:

  • Collisions
  • Roadwork and construction
  • Pedestrian activity
  • Natural events and obstructions

With more electric vehicles hitting the highways, this integration has the potential to make the roads safer across the country for many different demographics. 

Electric vehicles used to be a commodity that was only available to a niche audience. Now, the use of AR/VR mobile connectivity and online buying options opens up the market to just about everyone.

Increased Affordability of Electric Vehicles

An A-to-B comparison between a base model combustion vehicle and an electric car of the same class shows that e-vehicles are still a bit more pricey overall. But, industry experts expect that gap to close by 2022.

The cost of building and maintaining an electric powertrain system is dropping steadily, which is making it easier for the average buyer to gain entry into this market.

Electricity is also a highly regulated commodity that rarely fluctuates in price. Fossil fuels, on the other hand, are incredibly volatile and their value varies greatly depending on external factors like:

  • Changes in supply and demand
  • State of the economy
  • Market traders
  • Future supply of finite resources

Many lenders offer discounts and incentives for borrowers to finance an electric vehicle. This, plus available tax credits and decrease fuel costs, make electric vehicles a more cost-effective option for those focusing on long-term goals.

Electric Car Sales in 2020

Interest in Green Living on the Rise

Even before the Coronavirus pandemic shook up the global economy, people across multiple age groups and income levels were leaving their overcrowded metropolitan areas in favor of more space, and less of a household footprint.

Green living is another trend that has taken off in 2020, and the demand for an electric vehicle follows closely behind.

Minimalism and simplified living surged in popularity this year, especially during the COVID-19 lockdown. Downsizing in different forms, from closet space to household budgets, is another factor that has driven the demand for electric cars.

As natural disasters around the world bring attention to the global climate crisis, this demand is only expected to rise in the near future.

Global Market Trends Motivate American Buyers

Automotive brands in China and across Europe have been utilizing electric-powered technology to meet emission restrictions and a growing demand for green solutions. This is, in part, contributing to the growing electric vehicle sector in the United States. 

Tesla has completely changed the consumer vehicle market, and now competition between other manufacturers is driving prices down for buyers around the world.

In 2021, global electric vehicle purchases are expected to skyrocket and this sector might soon overtake the gas-powered portion of the market. 

The increased availability of charging stations, parking charge ports, and fueling options for e-car drivers has made it easier for more people to include an electric vehicle into their lifestyle plan. This transportation option is no longer limited to those who live in metropolitan high rises or commercial housing structures.

Driving an electric vehicle is an easy way to solve a variety of different issues, from green living to cost efficiency to technological interconnectivity. Tech-savvy and cost-conscious drivers can agree that electric cars are the future of consumer transportation.