The current health crisis will impact the mobility space — there will be winners and losers in the space. Changes in air quality and EV adoption incentives and are the top reasons that EVs will come out of this on top.
Shelter in place guidelines have reduced the number of miles traveled by private vehicles, as well as overall industrial activity. As a result, we have seen cleaner air, with seeing the biggest changes in the most polluted regions. For instance, smog has disappeared in many urban areas in China. To maintain clearer skies, governments need to accelerate the deployment of EVs.
As regions start to reopen, people will be shifting from public transportation to private vehicle transportation. As vehicle sales start to ramp back up to pre-crisis levels, incentives should focus on clean vehicles. Clean vehicles incentives and unchanging emissions regulations will accelerate the adoption of EVs and help OEMs and suppliers recover their investment (and continue expanding in the space).
The EV market will continue to grow — the EV market size is expected to reach $802B by 2027 (in 2019 the market size was $162B). For instance, Columbus, Ohio has exceeded its EV adoption goals by securing grant funding and creating business partnerships with OEMs and employers. EV sales increased from being 0.4% to 1.8% of all cars sold. Vehicle trade-in programs will also help by removing ICE vehicles and incentivizing EV adoption. To see this transition, programs need to be created and deployed globally.