https://www.theguardian.com/environment/2019/dec/25/2020-set-to-be-year-of-
the-electric-car-say-industry-analysts

https://v.gd/vfyhSV

2020 set to be year of the electric car, say industry analysts

Mini, Vauxhall Corsa and Fiat 500 will join rapidly expanding European EV 
market

Jasper Jolly

Wed 25 Dec 2019 04.00 EST

Europe´s carmakers are gearing up to make 2020 the year of the electric car, 
according to automotive analysts, with a wave of new models launching as the 
world´s biggest manufacturers scramble to lower the carbon dioxide emissions 
of their products.

Previous electric models have mostly been targeted at niche markets, but 
2020 will see the launch of flagship electric models with familiar names, 
such as the Mini, the Vauxhall Corsa and the Fiat 500.

The number of electric vehicle (EV) models available to European buyers will 
jump from fewer than 100 to 175 by the end of 2020, according to data firm 
IHS Markit. By 2025 there will be more than 330, based on an analysis of 
company announcements.

The new supply will cater to a rapidly expanding market as demand for petrol-
powered vehicles gradually recedes. UK EV sales will rise from 3.4% of all 
vehicles sold in 2019 to 5.5% in 2020 - or from 80,000 this year to 131,000 
in 2020 - according to forecasts from Bloomberg New Energy Finance. By 2026 
electric vehicle sales will account for a fifth of sales in the UK, the 
forecasts show. Similar predictions from LMC Automotive suggest 540,000 
electric cars will be sold across the EU in 2020, up from 319,000 over the 
course of 2019.

New European Union rules come into force on 1 January that will heavily 
penalise carmakers if average carbon dioxide emissions from the cars they 
sell rise above 95g per kilometre. If carmakers exceed that limit, they will 
have to pay a fine of EUR95 (£79) for every gram over the target, multiplied 
by the total number of cars they sell.

The excess emissions bill would have been £28.6bn on 2018 sales figures, 
according to analysis by the automotive consultancy Jato Dynamics, 
illustrating the extent of the change required by carmakers over a short 
period of time. Jato analyst Felipe Muñoz said there will still be large 
fines, as companies keep selling profitable internal combustion engine cars 
and struggle to bring down EV prices to parity with their fossil-fuel peers.

"It is very difficult for carmakers to change manufacturing infrastructure 
in such a short period of time," Muñoz said.

However, some analysts take a more sceptical view of the industry that 
spawned the Dieselgate scandal, in which Volkswagen and Daimler were shown 
to have deliberately cheated emissions regulations. Carmakers successfully 
lobbied for a rule that means cars emitting less than 50g of carbon dioxide 
per kilometre are eligible for so-called super-credits, a controversial 
policy which means that every electric vehicle sold counts as two cars. That 
makes it easier for carmakers to meet their targets, even if average 
emissions from their cars are actually higher than the rules stipulate.

"A lot of action has been postponed until [the carmakers] need to," said 
Julia Poliscanova, the clean vehicles director at the campaign group 
Transport & Environment. "What they´re planning to produce is more or less 
what they need to hit their CO2 targets."

Multiple new electric car models will go on sale just in time to qualify for 
EU regulations. In November the first of Volkswagen´s ID.3 cars rolled off a 
new electric production line in Zwickau, eastern Germany, that will be able 
to produce 330,000 vehicles a year by 2021. The first of BMW´s Mini Electric 
models, made in Oxford, will arrive in showrooms in March. Vauxhall, owned 
by France´s PSA Group, will start production of its Corsa-e in January, with 
sales to begin in March.

Sales of pure electric vehicles will still be dwarfed by those of cars with 
conventional fossil-fuel engines, as well as hybrids that use both battery 
and internal combustion power. However, the electric vehicle surge is likely 
to contribute to significant price reductions, as carmakers compete for 
buyers beyond the early adopters willing to pay a premium.

Consultants at Deloitte estimate the market will reach a tipping point in 
2022, when the cost of ownership of an electric car is on par with its 
internal combustion engine counterparts. Separate research by the 
International Council on Clean Transportation suggested this was already the 
case in February in five European countries, including the UK.

In the UK, some drivers anxious about the short range of electric vehicles 
on a single charge will be put off from buying them until the development of 
charging infrastructure spreads across the country. However, scandals such 
as Dieselgate have made investors "acutely aware" of the need to increase 
electric sales and comply with emissions regulations, according to Arlene 
Ewing, a director at wealth manager Brewin Dolphin.

"Brand is all to a carmaker and failure to meet the deadline may adversely 
affect their brand, reputation and, ultimately, sales," she said. "We have 
seen this before. Consumers tend to be brand loyal."

Rising demand from consumers has also filtered through to used electric 
cars: listings website CarGurus found that second-hand prices of some models 
had risen during 2019. Tom Leathes, the chief executive of rival car sales 
platform Motorway, said the market was growing "extremely fast", despite the 
complications of selling cars that include separately leased batteries.

"We expect this segment to grow year on year for at least another 10 years 
as electric´s share of the new car market continues to grow exponentially," 
Leathes said.

Five electric cars to watch out for in 2020 [UK-centric]

Volkswagen ID.3
Price: under £26,000, range: 205 miles, due in early 2020

The "third-generation" mass-market vehicle from the world´s largest carmaker 
will be swiftly followed by the ID.4 SUV, on the same electric vehicles 
platform, and production will be carbon neutral, VW claims.

Vauxhall Corsa-e
Price: £26,490, range: 209 miles, due in April 2020

Along with the Mini, the Corsa is one of the first of the UK´s perennial 
bestsellers to get an electric makeover. It shares its core parts with 
Peugeot´s e-208, another of the PSA Group´s key superminis.

Tesla Model Y
Price: about £30,300, range: 230 miles, production to start in summer 2020

The latest model from the company that kicked off the electric car race will 
be the Model Y, a compact SUV that can fit seven people. The Model Y will 
eventually be built on the same site as a recently announced Tesla battery 
plant in Berlin.

Ford Mustang Mach-E
Price: about £35,000, range: 370 miles, expected late 2020

The Mustang Mach-E is aimed at the booming family-friendly SUV market. The 
car will be the first all-electric vehicle from the US carmaker, which has 
been slow to develop new sources of power.

Fiat 500 Electric
Price: about £28,000, range: tba, due in late 2020

Fiat Chrysler Automobiles has been an emissions laggard because of its gas-
guzzling Jeep. The company´s first fully electric car, the redesigned 500 
Electric, will be made in its Mirafiori factory near Turin, with a right-
hand drive version launched late in the year.


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