SCC Global Electric Market Study

A SmallCapCanada Research Report

Global Electric Vehicle Market Study

Contents1. Introduction

2. Market OverviewDefinition and Scope of The EV MarketKey Segments of The EV Market

3. Evolution of The Global Electric Vehicles Marketa. A Brief History of The EV Marketb. Top Factors Influencing the Global EV Marketc. Top Investment Pockets in The Global EV Market

4. Factors Driving Growth in The Global EV Marketa. Barriers to the adoption of EVs are crumblingb. Government interventionc. Availability of new EV models

5. Major Restraints for The Global EV Marketa. High production costsb. Scarcity of charging infrastructure

6. Opportunities in The Global EV Marketa. Better technologyb. Proactive government initiatives

7. Market Share AnalysisElectric Vehicle Market (By Type of Powertrain)Electric Vehicle Market (By Vehicle Type)Electric Vehicle Market (By Region)

8. Company Profiles

9. SmallCapCanada’s Conclusion

10. Sources

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1. Introduction

2017 is a pivotal year in the global electric vehicles market when talking about the number of units sold.

In that year, electric vehicle (EV) carmakers sales numbers surpassed the one million units' threshold,

according to the Electric Vehicle Index by McKinsey. For the first time, the possibility of good returns

from the EV market became apparent.

Mobility is at the center of human life. For centuries, governments have invested heavily in

infrastructure to ensure better and more convenient movement of people. The motor vehicle

industry has played a significant role in enabling this trend. In recent decades, however, the

centrality of vehicles in human mobility has been sliding further and further into doubt.

Vehicles powered by internal combustion engines (ICEs) have received a sizeable amount

of blame for filling our skies with dirty air. Therefore, the push towards guaranteeing clean air

would naturally put the future of these vehicles in jeopardy.

3www.smallcapcanada.com

https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive and Assembly/Our Insights/The global electric vehicle market is amped up and on the rise/The-global-electric-vehicle-market-is-amped-up-and-on-the-rise-web-final.pdf

http://www.smallcapcanada.com/

While one type of engine is facing extinction because of the ongoing green revolution, another type is

re-emerging. EVs are making headlines every waking moment. The small milestone in 2017 is now a

frequent occurrence. For context, a total of of EVs rolled off showrooms in 2020. In the 3.24 million units

year before that, 2.26 million EVs were sold.

There is a strong wind in the global electric vehicles market's sails. WHY NOW?

Electric vehicles were in the late 1800s until Ford's Model T changed the market's massively popular

tastes. The desirability of ICE vehicles became a thing only after cheap oil started flowing from Texas.

Without it, even the better roads would not have pushed the market away from EVs. Therefore, one

could argue that the automotive market has run full circle.

EV sales have started surpassing gas-powered vehicles, at least in 2020. Unlike in the 1890s, in Norway

when EV car sales beat gas-powered vehicle sales 10-to-1, today's EV market has more strength. EV

sales should to accelerate as long as the zero-emissions policy continues.

Zero emissions policy is the biggest influence in the ascendance of the EV market today, but it is not the

only one. In this report, we highlight and provide an in-depth analysis of the top factors driving sales.

Also, we discuss the top investment pockets on whose back the EV market stands to dominate the

future automotive industry. Additionally, this report breaks down the EV market by type of vehicle, make,

and region. We conclude this report by profiling some of the major companies that are at the forefront of

the resurgence of the EV market.


https://www.ev-volumes.com/

https://www.energy.gov/articles/history-electric-car#:~:text=First%20Crude%20Electric%20Vehicle%20Is,an%20English%20inventor%20in%201884.

https://www.carscoops.com/2021/01/evs-outsell-gas-powered-cars-for-first-time-ever-in-norway-rising-to-a-record-54-market-share/


2. Market Overview

Another category of EVs is hybrid electric vehicles (HEVs). As the name suggests, HEVs

have two powertrains – an electric powertrain and an ICE powertrain. HEVs are the

precursors to the current EV market, and they were selling around 10 million units per year by

2016. Plug-in HEB (PHEV) is a rechargeable subtype of hybrid Evs.

An electric vehicle is either pure or hybrid. A pure EV obtains torque exclusively from motors,

such as a Battery Electric Vehicle (BEV), fuel cell vehicle, and solar panel vehicle.

Rechargeable EVs are a subset of BEVs called plug-in electric vehicles (PEVs).

The electric vehicle market entails the manufacture and sale of vehicles that rely on electricity for

propulsion. Instead of an international combustion engine (ICE), an EV obtains propulsion from a

series of motors powered by batteries.

Definition and Scope of The EV Market



The EV market currently can be divided into major segments.

The second area of segmentation is by regional market.

This report's key regional

markets include North

America, East Asia (mainly

South East Asia, including

China), and Europe. The

regions outside East Asia,

Europe, and North America

are moving slowly in the

uptake of the EV revolution.

Another area of segmentation is the type of vehicle.

Whether the vehicle

is a passenger car, a

commercial vehicle,

or a two-wheeler.

Key Segments of The EV Market

The first area of segmentation is the powertrain type.

For instance, plug-in

hybrid electric vehicles

(PHEVs) belong to

different segments,

such as BEVs.



3. Evolution of The Global Electric Vehicles Market

The decade in the 1920s is legendary in the Western world for many things. Western economies

registered massive rates of expansion during this period. This period is credited as the era of mass

consumerism. In her book titled The Roaring Twenties: Discover the Era of Prohibition, Flappers,

and Jazz, author Marcia Amidon Lusted describes a period where anything goes. The US

experienced a certain vibrancy in its economics, culture, literature, and music like no other.

This is also the period when EVs were at the pinnacle of their desirability. EVs were

convenient and a joy to drive. One needed not to crank an EV to start like one would a gas-

powered vehicle. Besides, few people used cars for long journeys. However, a combination

of factors condemned EVs from the roads and consumers' memories by the mid-1930s.

First, the vehicles could only travel a short distance. Second, the vehicles were unnavigable

on bad roads. Third, one unit of an EV was almost thrice as expensive as a Ford Model T.

a) A Brief History of The EV Market



Evs made a comeback into global discourse in the 70s when a crisis in the rela�onship between the West and the Middle East led to a bi�ng gas shortage. The US poli�cal leadership took no�ce of the vulnerabili�es of the automo�ve industry and enacted the Electric and Hybrid Vehicle Research, Development, and Demonstra�on Act of 1976.

The Act established the Electric and Hybrid Vehicle Research, Development, and Demonstra�on Project to pursue opportuni�es for hybrid vehicles. Around $60 million of funding was made available for the project. The legisla�on set in mo�on a scramble for alterna�ve fuels for engines by various automakers.

Two pieces of legisla�on returned serious a�en�on to EVs in the 90s. First, extensive revisions to the in 1990 introduced restric�ons around emissions. Second, the Clean Air Act Energy Policy Act of 1992 emphasized the issue of energy efficiency in the automo�ve industry. As such, the early 1990s mark the beginning of the shi� to EVs due to environmental concerns arising from emissions from ICE vehicles.

The current resurgence of the EV market builds on the momentum that cropped from the early 1990s. Various companies such as Toyota, General Motors, and Honda have a�empted to carve out an EV market for their products but could not create enough buzz to a�ract the mass market. Enter, Tesla.

So far, this account of the EV journey has been heavily concentrated on the US market. Nonetheless, the bias does not defeat the ul�mate purpose, which is that the EV market has experienced numerous starts and stops before reaching the current place. Tesla's success – and that of other EV startups in China and Europe – has powered the EV hype seen today.


https://www.congress.gov/bill/94th-congress/house-bill/8800


https://www.epa.gov/clean-air-act-overview/1990-clean-air-act-amendment-summary

https://www.congress.gov/bill/102nd-congress/house-bill/776


b) Top Factors Influencing the Global EV Market

Changing consumer prioritiesClimate change is now a widely discussed matter. Governments and consumers alike wish to play a part in righting the course of the earth in terms of climate. As such, more consumers than ever before are willing to pay extra cash to buy an EV.

Push towards zero emissionsThe push towards zero emissions is now a matter of national policy. 196

countries joined the in 2016 with a precise goal – “to Paris Agreementlimit global warming to well below 2 degrees Centigrade.” The

agreement advocates for “net-zero," which means “no addition of new emissions to the atmosphere.” To this end, governments across the

globe are disincentivizing automakers from manufacturing ICE vehicles.

Changing strategies by automakersAutomakers have adjusted. In the near future, there will likely be a much smaller market, if any, for ICE vehicles. As such, a strategy change for the original equipment manufacturers (OEMs) is necessary. This explains why veteran automakers from North America to Japan are experimenting with pure EV models.

Corporate companiesCorporations are some of the automakers' biggest customers. Lately,

businesses have shown a tendency to favor EVs for their fleet. The “net-zero" principle is also top of the agenda for many corporates. Businesses are positioning themselves as champions of a stable climate, and in the

process, they are facilitating a mainstream transition to EVs.


https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement


c) Top Investment Pockets in The Global EV Market

I nstalling charging stationsEV ownership in North America is increasing fast, but the rate of availability of charging stations is much lower. EVs are on Over 2 millionthe streets of North America against registered public charging 47,614stations. If this trend holds, there will not be enough charging stations to cater to demand. The new administration in the White House has made commitments to avail more charging infrastructure, but the threat of a crisis is real until then. Charging stations are now a huge piece of the pie of which everyone wants a piece.

Increasing EV sales are applying immense pressure on the battery manufacturers to increase their production capacity. Batteries store the energy that propels EVs, which makes them an anchor technology for the zero-emission movement. About 230 businesses manufacture batteries in the US alone, and their combined annual earnings stand at around $10 billion. For context, the global battery market is expected to touch a valuation before the end of this decade. $310 billion

Battery manufacturing

A typical gas station includes a convenience store to cater to drivers' other needs while fueling their cars. The problem with this model is

that refueling a vehicle takes a short time, usually under five minutes. With this little time on their hands, drivers tend to remain in their cars. EV charging is a different story. Some show that estimates

the average dwell time for EV drivers is about 50 minutes. In this light, a charging station-convenience store business model has

never been so appropriate.

Battery metals such as lithium and nickel are pricey commodities in the face of the increasing adoption of EVs. Today, many major and junior

miners are running mines that produce millions of tons of these metals, yet the supply falls short. According to a Roskill report, over the next

decade, battery metals will be viewed as the next gold.


Battery metals mining

Convenience stores to cater to drivers intheir dwell time

https://www.automotiveworld.com/articles/north-american-ev-market-poised-for-growth-despite-pandemic/

https://afdc.energy.gov/fuels/electricity_locations.html#/find/nearest?fuel=ELEC

https://www.bloomberg.com/news/articles/2020-12-02/joe-biden-plan-to-fight-climate-change-could-sell-25-million-electric-cars?sref=ZCCexVBt

https://www.chargepoint.com/files/casestudies/cs-retail.pdf

https://www.firstresearch.com/Industry-Research/Battery-Manufacturing.html



4. Factors Driving Growth in The Global EV Market

The impact of the

coronavirus pandemic on

the global economy in 2020

was devastating. Many

markets slumped by historic

margins. The global

automotive market, for

example, declined by . a fifth

Meanwhile, the global EV

market surged by the most

margin, . Over 3 million 43%

EV units were sold.

Figure 1: Global sales of electric cars accelerated in 2020 Source: The Guardian


https://www.theguardian.com/environment/2021/jan/19/global-sales-of-electric-cars-accelerate-fast-in-2020-despite-covid-pandemic




This scenario is eye-catching. However, you will begin to see a different picture after considering the

factors fueling the uptake of EVs. The factors include:

a) Barriers to the adoption of EVs are crumbling

s have come a long way since they

disappeared in the mid-1930s. Their return

– and a possible permanent stay – is

thanks to a systematic collapse of the

barriers that condemned them to

obsolescence in the first place.

The most significant barrier is consumer

attitude. In the 30s, consumers viewed

Ford's Model T as an efficient and reliable

automobile. After all, gas was cheap,

and carbon emissions were nowhere in

the public discourse.

Recent surveys show that consumers are

adopting a favorable attitude towards EVs.

The primary driver for the change of heart

is a concern for the climate. In a 2020

survey by , most Resources for the Future

American respondents said the adoption

of pure EVs is good for the environment.

Figure 2: How much Americans think driving an all-electric car helps the environment.

Source: Resources for the Future

As concerns about global

warming increase (and its

correlation to carbon

emissions), the uptake of

EVs is likely to match

its pace.

EV


https://www.rff.org/publications/reports/climateinsights2020-electric-vehicles/#:~:text=40%25%20of%20Americans%20said%20they,will%20consider%20buying%20an%20EV.



The government's hand in the ascendancy of the electric vehicles market is explicit. For example, the EU

Commission adopted in April 2019, aiming to reduce carbon emissions in the bloc. Regulation 2019/631

The law sets strict emission standards for all types of gas-powered vehicles, and its implementation

started in 2021.

Therefore, it is curious that Europe the Chinese EV market sales for 2020 for the first time. beat

Compared to 2019, Europe's uptake of EVs in 2020 was up 137%.

b) Government intervention

Figure 3: BEV + PHEV sales and % growth Source: EV Volumes


https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32019R0631




Figure 4: Timeline of strategic OEM targets for EVs Source: Deloitte

The EV market is attracting more traditional players as sales of ICE vehicles continue to slump. Deloitte's

analysis (in figure 4 below) shows that all major automakers have set EV goals in the decade between

2020 and 2030.

c) Availability of new EV models

Remarkably, the increased strategic OEM targets are doing something to the market – they are

expanding the choice range for consumers. Now, consumers do not have to be stuck with a choice

between two Tesla models. As such, the next stage for this scenario is making EVs more affordable.


https://www2.deloitte.com/uk/en/insights/focus/future-of-mobility/electric-vehicle-trends-2030.html



5. Major Restraints for The Global EV Market

The rosy numbers coming out of the global EV market are encouraging. However, the numbers can

barely mask the restraints that OEMs are facing. The restraints include:

a) High production costs

An August 2020 Financial Times established that the total cost of manufacturing EVs report

will fall by almost a fifth by 2030. Most of the difference should come from falling battery

prices. However, EVs will still cost 9% higher in production costs than ICE vehicles in 2030.

As per the FT report, this scenario will play out while the manufacturing cost of ICE vehicles

remains constant between 2020 and 2030.


https://www.ft.com/content/a7e58ce7-4fab-424a-b1fa-f833ce948cb7


The biggest headache for EV OEMs today is

how they can achieve price parity with ICE

vehicles as soon as possible. This need

becomes even more urgent when

consumers become highly sensitive to the

price of EVs. As long as the production cost

of EVs remains higher than for ICE vehicles,

many carmakers will continue to show

reluctance to join the EV market.

b) Scarcity of charging infrastructure

We mentioned earlier that there are about

40,000 registered public charging stations

in North America for over 2 million EVs. At

this rate, charging will become a huge

problem in the future.

Speaking about charging infrastructure,

there is the problem of compatibility. In

the US, Tesla prefers the Level 2 charging

connector, which performs slower than

Level 3 charging connectors preferred by

other OEMs. The adoption of EVs will be

suboptimal as long as the standard

battles draw out.

COST


https://www.theguardian.com/environment/2020/oct/21/electric-cars-as-cheap-to-manufacture-as-regular-models-by-2024



6. Opportunities in The Global EV Market

Electric vehicles have been around before. There have been great lessons learned at the end of every

super cycle. Nevertheless, issues such as the cost of manufacturing and the inability to match ICE

vehicles in off-road conditions remain constant across all periods.

Interestingly, herein lie the opportunities for stakeholders in the global EV market. They include:

Therefore, solving these key issues is vital for the survival of EVs this time round.



a) Better technology

b) Proactive government initiatives

Lithium-ion batteries are the most common today, which

leaves plenty of opportunities for improvement. Various

materials are being explored that will create longer-lasting

batteries. Researchers are also modifying the lithium-

based batteries to achieve higher energy efficiency, such

as the by researchers at lithium-sulfur battery project

Monash University.

Inferior battery technology remains the EV market's most

significant drawback. Although inferior is an unfair term to use,

it refers to the current battery technology that underperforms

the ICE. Currently, ICE vehicles are cheaper to manufacture,

and they cover a longer range than the average EV.

The Norwegian political leadership is targeting a complete

transition to EVs by 2025. According to the official

government strategy, all the cars sold after this period should

be either hydrogen-powered or electric. Favorable policies

aside, the Norwegian government has also extended wide-

ranging incentives to players in the EV sector. For example, EVs

incur only half of the toll amount on Norwegian roads since 2019,

EVs enjoyed free parking on municipal premises between 1999

and 2017, EVs can use bus lanes since 2005, and so on.

EV sales surpassed traditional auto sales in Norway in 2020 for the

first time. While this is a great achievement, it could not be possible

without proactive government initiatives. Norway's EV policy

started in the early 1990s with the waiver of purchase and import

taxes on EV-related merchandise.

Therefore, there is a huge opportunity for the EV market to expand massively across the globe if more governments can adopt such initiatives.


https://www.advancedsciencenews.com/the-worlds-most-efficient-lithium-sulfur-battery/#:~:text=Monash%20University%20researchers%20have%20developed,smartphone%20for%20five%20continuous%20days.

https://elbil.no/english/norwegian-ev-policy/


7. Market Share Analysis

Electric Vehicle Market (By Type of Powertrain)

The global EV market is still in its formative years, but so far, three types of EVs have emerged as top

performers.

Overview

Each EV type has seen different levels of adoption based on consumer preference. This is how they

share the global EV market sales:

BEVs HEBs PHEVs



i. Battery Electric Vehicle (BEV)

This type of EV is more commonplace than all the

others. Also, its sales rank higher by a considerable

margin. Out of the EVs sold in 2019, BEVs 2.1 million

were 1.68 million, 80% of the global EV sales.

Also, BEV sales have been growing at the fastest

rate. Most BEVs are light passenger cars, and this is

the section of the EV market whose demand for

EVs is highest.

BEVs turn their wheels using torque from a series of

motors. These motors acquire energy from batteries

mounted at the base of the vehicles' chassis.

Batteries do not produce emissions when giving off

energy.

Figure 5: Battery-electric vehicle sales worldwide from 2016 to 2019 Source: Statista


https://www.iea.org/reports/global-ev-outlook-2020

https://www.statista.com/statistics/1059214/global-battery-electric-vehicle-sales/




ii. Hybrid Electric Vehicles (HEVs)

The has sales data US Bureau of Transportation Statistics

for HEVs going as far back as 1999. For context, the

agency's data for PHEVs start from 2010 and 2011 for

BEVs. According to this data, HEVs sales in the US

accelerated rapidly from 1999 up to 2007, peaking at

351,100 units. The sales went sideways from 2008

onwards until they picked up pace after the Great

Recession and peaked at 495,500 in 2013. Since then,

HEV sales in the US have weakened as China and Europe

lead the pack.

HEVs are the oldest type of electric vehicle in the market

today. OEMs such as General Motors, Ford, and Toyota have

been experimenting with this type of vehicle since the 70s. A

hybrid EV is a safe bet for manufacturers who hope

consumers are willing to try out a piece of two worlds.

The trend in the HEV sales in the US reflects the global

scenario. More consumers are opting for pure electric

powertrain, especially in markets such as Europe and China.


https://www.bts.gov/content/gasoline-hybrid-and-electric-vehicle-sales#:~:text=Hybrids%20captured%203.2%25%20of%20the,light%20vehicle%20market%20in%202019.


iii. Plug-in Hybrid Electric Vehicles (PHEVs)

Unlike HEVs, PHEVs

sales are gaining traction.

However, PHEVs sales

still underperform BEV

sales. The rate at which

PHEV sales increased

between 2011 and 2013

was the highest in the

market (as figure 6 on the

right shows). However,

BEV sales picked up and

have been growing faster

ever since. Figure 6: BEV versus PHEV sales

Source: McKinsey Electric Vehicle Index

We must highlight that the worldwide EV market differs significantly in terms of powertrain preference. In

the US, for instance, the PHEV seems more favorable than BEVs and HEVs. Across the Pacific in China,

the BEV powertrain is dominant.

Nevertheless, BEVs remain the most favorable globally. In 2019, only new PHEVs were sold 568,000

against 1.68 million for BEVs. As such, the market share of PHEVs at about a quarter, leaving under 5% for

HEVs and other smaller EVs.

Figure 7: Plug-in hybrid electric vehicle sales worldwide from 2012 to 2019 Source: Statista




https://www.statista.com/statistics/442759/global-sales-of-plugin-hybrid-electric-vehicles-as-a-share-of-evs/#:~:text=About%20568%2C000%20new%20plug%2Din,plurality%20of%20sales%20in%202019.


Electric Vehicle Market (By Vehicle Type)

The primary point of differentiation in the EV market is based on powertrain, but it is not alone. Marketers

also categorize sales in terms of vehicle type. Different types of EVs are on the road in many countries.

They include:

Overview

This section iterates through each vehicle type and discusses its share of the market.

mostly sedans but SUVs are also coming up

such as trucks

Two-WheeledVehicles

Passenger Cars CommercialVehicles

Although their usage is concentrated in the

APAC region, electricity-powered two-wheeler

sales numbers outperform the rest of the EV

market. In 2016, for instance, 34.4 million units

of the two-wheelers were sold. In comparison,

only around 510,000 BEVs were sold in the

same year.

The two-wheeler class of EVs is big in East Asia.

These EVs are popular in the populous cities of

Mumbai, Beijing, and many other big cities in the

Asia Pacific (APAC). Unlike passenger cars,

electric motorbikes and scooters are cheap and

are easy to maintain. The charging duration for

an e-scooter is a fraction of the duration for

charging a Tesla car.

India is the biggest market for two-wheeled electricity-powered vehicles globally. It accounted for of 31%

the market in 2019, followed by China at 29%. Sales of these EVs in India are expected to reach 3.4 million

in 2025.

i. Two-Wheelers

Figure 8: Regional market share of e-motorcycles in 2019 (based on unit sales)

Source: IDTechEX


https://www.statista.com/statistics/445004/worldwide-sales-of-electricity-powered-two-wheelers/

https://www.idtechex.com/en/research-report/electric-two-wheelers-2021-2041/791


https://www.statista.com/statistics/1029829/india-two-wheeler-electric-vehicles-sales-number/



ii. Passenger cars

Passenger cars are the anchor of the global EV market. Of the 2.1 million EVs sold in 2019, were over 90%

passenger cars. Just four years ago, only 450,000 passenger EVs were sold. As of 2020, the 10 best-

selling EVs are passenger cars. Tesla sits atop the list with sold. 365,000 units

In the four-wheeled EV segment, passenger cars are king. Passenger cars are the primary target for the

EV market, especially noting that much of the carbon emissions from vehicles come from them.

Governments in Europe, Asia, and North America are pushing for fewer ICE passenger cars on their roads

to achieve net zero-emission goals.

Figure 9: Best-selling electric vehicle models worldwide in 2020 Source: Statista

According to a report, the number of passenger EVs will reduce in the future relative to BloombergNEF

two-wheelers and commercial EVs. As per the report, passenger car drivers are the early adopters of

EVs, which is why they dominate. However, BloombergNEF anticipates a massive acceleration in

adopting two-wheelers and commercial EVs such as municipal buses over the next decade.


https://www.ev-volumes.com/news/global-bev-phev-sales-for-2019/

https://www.statista.com/statistics/960121/sales-of-all-electric-vehicles-worldwide-by-model/


https://about.bnef.com/electric-vehicle-outlook/


iii. Commercial Electric Vehicles

Inefficient batteries are the biggest drawbacks for commercial EVs at the moment. By nature of their use,

commercial EVs travel over long distances; hence, the range is critical. Also, commercial vehicles carry

heavy loads – in the case of trucks and buses.

Nevertheless, commercial EV OEMs are registering substantial growth in sales. Demand from businesses

such as Amazon should persuade more commercial EV OEMs to invest in the sector. Analysts at

BloombergNEF think municipal buses will anchor growth in the heavy commercial EV segment. Various

cities across the globe are adopting these vehicles to transport city-dwellers.

BloombergNEF's shows that the number of EVs in the global municipal bus fleet exceeded data

passenger EVs in 2019. Interestingly, 98% of these buses were in China. EV bus sales are also ramping up

in Europe. In 2019, the number of electric buses on Western European roads. tripled

Electric Vehicle Market (By Region)

i. Global perspective

2019 was a pivotal year in the global EV market. It was during this period that EV sales started to show

the potential to challenge ICE vehicles. Also, the year saw automakers allocate to EV-$225 billion

focused investments. Legacy auto manufacturers such as General Motors accounted for the biggest

share of the funds. Therefore, one can argue that 2019 was the year EV became a thing.

Nevertheless, China remains undisputed concerning investment in EVs – of the global EV 28%

investment in 2019. North America lags far behind East Asia and Europe, with only a 7% share of the

worldwide EV investment.

Figure 10: Public electric vehicle investments announced by automakers 2019-2023

Source: Quartz

EV sales from a global

perspective appear

encouraging, but the picture

turns grim when evaluated on

a regional basis. Available

data depicts an unbalanced

market with the heaviest load

lying in East Asia and Europe.



https://www.sustainable-bus.com/electric-bus/electric-bus-public-transport-main-fleets-projects-around-world/

https://www.wsj.com/articles/gm-lg-to-spend-2-3-billion-on-venture-to-make-electric-car-batteries-11575554432

https://qz.com/1762465/2019-was-the-year-electric-cars-grew-up/



ii. Asia

iii. Europe

Asia has been the center stage for the global EV market for a while now, thanks to China. The Chinese

government started to taper subsidies for the EV market in early 2019, which hurt sales in the first half.

Regardless, the country registered a in new EV sales by the end of the year. Even with the modest 3%

sales growth, China's EV sales for 2019 accounted for 53% of the global EV sales. This value stood at 56%

in the previous year.

Japan has been home to an

ambitious EV project for decades.

Toyota is among the earliest

dreamers of a resurgence of the

EV market since the 70s. However,

the country continues to

disappoint in terms of sales. EV

sales in Japan declined 16% in

2019, which is the largest margin

among the top five EV markets in

the world.

Figure 11: BEV + PHEV sales and % growth Source: EV Volumes

Government incentives and changing perceptions are turning the tide in EV sales in Europe's favor.

Although China remains the dominant force in the market, the growth rate of EV sales points to a future

where Europe will be calling the shots.

Germany and Norway are the most critical EV markets, on whose back the region is threatening China's

dominance. In 2020, Norway registered more EV sales than sales of ICE vehicles, a first worldwide.

Germany, on the other hand, is accelerating in terms of OEM variants. Europe as a whole posted a 137%

increase in EV sales for the calendar year 2019.

The new EV sales in Europe jumped in 2019 44% compared to 2018.






iv. North America

Like China and Germany/Norway anchoring demand for EVs in their respective regions, the US is doing

as much work in North America. The country remains critical to the uptake of EVs and the development

of new models to satisfy global demand.

On the back of an impressive run in 2019, Europe has now dethroned North America as the second most

important market for EVs. Nevertheless, the US remains home to the market's most recognizable brands,

such as Tesla, two of whose models rank among the best five EV passenger cars worldwide for 2019.

Much of the action in the EV market revolves around Europe, Asia, and North

America. Among other reasons, EVs remain an early adopter market, which is

yet to arouse substantial interest from South America and Africa.

Nevertheless, one cannot write off regions such as the

Middle East and South America. For South America, several

countries are adopting electric buses at rates that rival North

America. Chile, for instance, is working on a strategy that, if

successful, will see its electric bus fleet come second only to

China. The Colombian city of Medellin is also pursuing the Chilean

strategy, having procured from China in 2019. 64 e-buses

It could be that electric vehicles' prohibitive costs for both the

supply and demand side are dampening action in these

regions. The overarching trend right now is that the EV market

is doing well in richer economies. In another sense, the EV

market in Europe, Asia, and North America thrives on

subsidies, which are not forthcoming in the other regions.

Therefore, it appears that EVs will populate the entire world in the coming decade, but a huge difference will be in the type of vehicles. E-buses are likely to become the dominant EV-type in regions such as South America, the Middle East, and Africa.


v. Other Regions



https://www.sustainable-bus.com/electric-bus/medellin-64-zero-emission-byd-buses-ordered/


8. Company Profiles

BMW

Sticking to its SUV tradition, BMW joined the EV fray with the massive 5-seater in BMW i3

2013. The BMW i3 is a continuation of the gas-powered SUV line that had been in

production long before that. Additionally, a sedan BMW i4 is on the way, and the company

expects to launch it three months earlier than planned.

BMW is a key member of the automakers who have vowed to electrify the European car market. The

German automaker specializes in the luxury end of the auto industry with a string of top-of-the-

range products in the market.


https://www.press.bmwgroup.com/global/article/detail/T0303913EN/six-years-of-bmw-i3:-electric-vehicle-pioneers-drive-over-200-000-km-in-their-bmw-i3?language=en#:~:text=Thanks%20to%20its%20role%20as,production%20until%20at%20least%202024.


Tesla

Volkswagen

Tesla is the poster child of the EV market.

The company has set the standard with its

innovative technology and car models that

have attracted throngs into the EV market.

Tesla's three flagship products, the Model 3,

Model S, and the Model X, rank favorably in

the global EV market.

The Elon Musk-led company started with a

particular focus on luxury sedans, but recent

developments show the company is willing

to push the envelope. A new model dubbed

Cybertruck targets the pickup truck market.

Tesla's entry into the pickup truck market

has forced legacy OEMs such as GM to also

venture into EVs.

Volkswagen is looking to put its recent

tribulations in the US auto market to rest by

churning EVs from its factory floor. The

German auto manufacturer already has a

popular product in the market, the

Volkswagen e-Golf.

The VW Group intends to churn out 3 million

BEVs annually by 2025, where Volkswagen is

intended to produce half of the units. Also, the

company has set an ambitious goal of

converting 25% of its annual sales into EVs by

the middle of this decade.



Nissan

Toyota

The Japan-based automaker is currently

the closest competitor to Tesla. Nissan has

the largest number of EVs in the market,

but its ambitions seem to be just getting

started. Its most popular product is Nissan

Leaf. Nissan Leaf beats many rivals on the

price front.

Nissan is part of the Renault-Nissan-

Mitsubishi alliance with ambitions to offer

eight pure EVs and 12 electrified models in

the global EV market – Europe is the

primary target market. By 2022, the alliance

expects 42% of its auto sales to Europe to

be EVs.

Toyota is another Japanese automaker

whose exploits in the global EV market

are legendary. The company is the first

automaker to mass-produce an EV in

global automotive history. In 2019,

Toyota that it would launch announced

six new EV models in the five years

between 2020 and 2025.


https://www.caranddriver.com/news/a27887943/toyota-ev-rollout-plans/


On October 1, 1908 Ford's Model T changed the game in the automobile market. Cheap domestic fuel

sources in the U.S. and low production costs on internal combustion engine (ICE) propelled automobiles

beat out the existing electric vehicle infrastructure. Today, and for the first time in over 100 years, the

automobile industry is beginning to see a global shift back to more environmentally responsible

transportation solutions.

An overpowering EV trend is producing innovative and affordable EV products with appealing

price points targeted at a growing consumer base in 3 of the world's top markets (North

America, Europe and Asia). For the first time in history automobile buyers are willing to pay a

premium for EV products over their traditional fossil fuel counterparts.

Massive market growth is resonating beyond the streets on which EVs drive and onto Wall

Street where their stocks are traded, heightening interest from investors and making EV

related brands among the most traded assets in the world's top financial marketplaces.


9. SmallCapCanada's Conclusion


The 2021 EV-mania overspill propels growth in related markets, making batteries more efficient,

implementing new regulation, and promoting a healthy cooperation between nature preservation

entities and regulatory bodies.

EV is viewed as a “win-win” market wherein everybody benefits - consumers, government, society,

nature, manufactures, and investors are all showing a strong desire to uphold the growing trend and

promote the importance of this disruptive technology. The new EV-era is young and has limited

infrastructure at its current stage, the continued support of these entities will prove imperative to global

adoption.

Continued collaboration between local and global regulators and organizations will be necessary to

solve these issues as a new infrastructure is put into place. SmallCapCanada believe the emerging

markets associated with the new “EV revolution” infrastructure will prove valuable areas of research and

focus in the near future. Stay tuned as the SmallCapCanada team dissects and analyzes the

fundamentals of these evolving industries and locates the top investment opportunities within.

SmallCapCanada believes this is a beginning of a global market disruption and not a short-lived trend.

The research and analysis shows a clear cooperative effort from a growing number of nations and

international organizations to entice a new error of electrically propelled automobiles, while consumers

in the world's wealthiest markets are already willing to spend more to buy them. There are clear

obstacles involved with widespread migration from ICE to EV: EV charging time vs. ICE refueling, long

range transport, cost of electricity, peak hour cost fluctuations and electrical storage are just a few as the

world begins its travel down this EV new road.

If you are not an SmallCapCanada member join today and you will receive all of our detailed market studies focusing on the fastest growing industries as well as detailed reports featuring emerging growth companies exhibiting favorable technical and fundamental signals.

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In addition to delivering comprehensive market studies and reports

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Sign up for free today at smallcapcanada.com




10. Sources





https://www.energy.gov/articles/history-electric-car#:~:text=First%20Crude%20Electric%20Vehicle%20Is,an%20English%20inventor%20in%201884.






https://www.mckinsey.com/~/media/McKinsey/Industries/Automotive%20and%20Assembly/Our%20Insights/The%20global%20electric%20vehicle%20market%20is%20amped%20up%20and%20on%20the%20rise/The-global-electric-vehicle-market-is-amped-up-and-on-the-rise-web-final.pdf

https://www.northernminer.com/analysis/battery-metals-are-critical-over-the-next-decade-roskill-says/1003828431/















https://www.energy.gov/articles/history-electric-car#:~:text=First%20Crude%20Electric%20Vehicle%20Is,an%20English%20inventor%20in%201884

https://www.energy.gov/articles/history-electric-car#:~:text=First%20Crude%20Electric%20Vehicle%20Is,an%20English%20inventor%20in%201884

















https://www.rff.org/publications/reports/climateinsights2020-electric-vehicles/#:~:text=40%25%20of%20Americans%20said%20they,will%20consider%20buying%20an%20EV

https://www.rff.org/publications/reports/climateinsights2020-electric-vehicles/#:~:text=40%25%20of%20Americans%20said%20they,will%20consider%20buying%20an%20EV











https://www.advancedsciencenews.com/the-worlds-most-efficient-lithium-sulfur-battery/#:~:text=Monash%20University%20researchers%20have%20developed,smartphone%20for%20five%20continuous%20days.


https://www.bts.gov/content/gasoline-hybrid-and-electric-vehicle-sales#:~:text=Hybrids%20captured%203.2%25%20of%20the,light%20vehicle%20market%20in%202019.

https://www.statista.com/statistics/442759/global-sales-of-plugin-hybrid-electric-vehicles-as-a-share-of-evs/#:~:text=About%20568%2C000%20new%20plug%2Din,plurality%20of%20sales%20in%202019.




https://www.press.bmwgroup.com/global/article/detail/T0303913EN/six-years-of-bmw-i3:-electric-vehicle-pioneers-drive-over-200-000-km-in-their-bmw-i3?language=en#:~:text=Thanks%20to%20its%20role%20as,production%20until%20at%20least%202024.








https://www.advancedsciencenews.com/the-worlds-most-efficient-lithium-sulfur-battery/#:~:text=Monash%20University%20researchers%20have%20developed,smartphone%20for%20five%20continuous%20days






https://www.bts.gov/content/gasoline-hybrid-and-electric-vehicle-sales#:~:text=Hybrids%20captured%203.2%25%20of%20the,light%20vehicle%20market%20in%202019

https://www.bts.gov/content/gasoline-hybrid-and-electric-vehicle-sales#:~:text=Hybrids%20captured%203.2%25%20of%20the,light%20vehicle%20market%20in%202019

https://www.statista.com/statistics/442759/global-sales-of-plugin-hybrid-electric-vehicles-as-a-share-of-evs/#:~:text=About%20568%2C000%20new%20plug%2Din,plurality%20of%20sales%20in%202019

https://www.statista.com/statistics/442759/global-sales-of-plugin-hybrid-electric-vehicles-as-a-share-of-evs/#:~:text=About%20568%2C000%20new%20plug%2Din,plurality%20of%20sales%20in%202019











https://www.press.bmwgroup.com/global/article/detail/T0303913EN/six-years-of-bmw-i3:-electric-vehicle-pioneers-drive-over-200-000-km-in-their-bmw-i3?language=en#:~:text=Thanks%20to%20its%20role%20as,production%20until%20at%20least%202024





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SCC Global Electric Market Study