Electric car sales jump by 63% in third quarter
As green energy and climate change become greater priorities, sales of electric vehicles have jumped by 63% in the third quarter of 2017 against the same period a year ago. During the three months ending in September, 287,000 electric and hybrid vehicles were sold globally, a 23% rise from the second quarter of the year. Bloomberg New Energy Finance (BNEF) now expects total sales of electric vehicles to reach 1 million by the end of the year.
The trend towards electric vehicles is driven by greater awareness of environmental risks and a preference for sustainability amongst the millennial generation, but over the course of 2017, governments have provided an immediate boost. A number of governments around the world have set targets to get diesel vehicles off the roads, and in the third quarter, China has been particularly proactive.
During the quarter, more than half of global electric vehicle sales were made in China, as the government made efforts to curb pollution in cities. This represents a doubling in Chinese appetites for electric vehicles. Aleksandra O’Donovan, advanced transport analyst at BNEF, said: “The Chinese government is very focused on pushing up EV sales. One reason for that is the local pollution levels in the cities, and a second is for China to build domestic heroes to compete internationally in this market.”
The trend towards electrification is picking up pace. Established carmakers from Jaguar to Volvo have announced plans to bring electric models to market. UK, French and Netherland governments have set dates from which all car sales will be for emission free models. China (which is the world’s largest car market) is considering a similar policy, as is California.
During the third quarter, Europe was the second biggest buyer of electrified vehicles (24% of the global total) followed by North America.
Dominion holds a number of companies in its Global Trends Managed Fund that are heavily involved in the trends towards electrification and automated driving.
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