China, Sweden, and Germany lead in EV readiness

New data from EY Global finds China, Sweden, and Germany as leaders in electric vehicle readiness.

The EY Electric Vehicle Country Readiness Index found China to top three out of four categories in 10 leading automotive markets while Sweden leads in the category of consumer demand.

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2020 saw a 39 per cent increase in BEV and PHEV sales, marking a global transition towards such products.

EY Global’s report expects EV sales to overtake the sales of all powertrains in China, Europe and the US by 2033, five years sooner than previously expected.

“China, Sweden and Germany currently lead the rankings due to key EV market strengths such as original equipment manufacturer (OEM) presence, policy support and battery supply,” the report says.

“The UK ranks fourth overall but features ahead of Sweden and Germany at third position in both the regulatory and demand readiness categories. The US lags major European markets in terms of EV demand, in part due to a lack of nationwide internal combustion engine (ICE) phase-out targets and continued poor consumer perception toward EVs.”

Acceleration

Fleet demand is being accelerated by government fleet electrification plans in leading markets, with five of the top ten markets adopting ICE phase-out goals.

Non-monetary incentives are also being implemented in such markets, including low-emission zones, reserved parking spaces and EV-only lanes.

“It is encouraging to see many governments implementing much-needed regulation, challenging OEMs and industry to meet goals but also providing incentives for consumers to help them on the journey to electrification,” Randy Miller, EY Global Advanced Manufacturing & Mobility Leader said.

“However, we still need more collaboration and competition. The transition to EVs is too complex and challenging for one company or one industry alone to overcome. Industry players across the mobility, power and utilities, private equity and energy industries, as well as government, must come together to create an ecosystem that is efficient, interconnected and profitable.”

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