Electric vehicle sales could almost double in 2021

PA

Electric vehicle sales could top 200,000 in 2021, almost doubling last year’s figures, according to new forecasts.

EV leasing site DriveElectric says it expects the ‘significant increase’ on 2020’s figure of 108,205 – itself more than 10 per cent higher than initially predicted.

The forecasted uptick in sales will be driven by many factors, with the government’s announcement that petrol and diesel vehicles will be banned from sale from 2030 being one of the key reasons.

DriveElectric also points to financial incentives for buying EVs such as low benefit-in-kind company car tax, established manufacturers bringing a wide range of models to market, and increasing public awareness of climate change and local air pollution.

The site predicts the likes of Volkswagen Group, Mercedes-Benz, Hyundai and Kia are well-placed to do well in this new market, with EV-specific platforms being developed. Meanwhile, Tesla’s popularity could continue to surge to rival the likes of BMW in the UK if it can ramp up production successfully, something it has historically struggled with.

On the other hand, it points to Nissan as underperforming despite gaining a lead on its rivals with the Leaf, while Jaguar Land Rover could struggle on account of only having expensive models during tough economic times.

Projections suggest electric vehicles could tip over 50 per cent of UK sales around 2025 as the 2030 ban gets closer and more models are available at more affordable prices. Last year, more than half of all car sales in Norway were EVs for the first time. The country has long been seen as an EV pioneer, offering massive incentives to buy a zero-emissions vehicle.

Mike Potter, managing director of DriveElectric, said: “It is interesting to see that battery electric vehicle registrations in 2020 exceeded our forecast despite the Covid-19 pandemic.

“In 2021 there will be even more EV models on sale, so motorists looking to save money on running costs and to banish tailpipe emissions will have even more choice.”

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