The most promising growth market we see will be for EVs. Aided by government incentives, the enforcement of stricter emissions targets and the launch of new EV models. The Economist expects global EV sales to increase by 37% in 2021, to 3.4m units, although they will account for just 4% of global car sales. (ii)
In China, EV subsidies are slowly being cut, particularly for more expensive cars, while delays to emission standards will reduce the pressure on automakers. US might see plans to restore full tax credits and provide an additional rebate on EV purchases come to fruition after the election of President Biden.
Sales of diesel vehicles will slump further, with governments desperate for revenue likely to raise fuel and emissions taxes further.(iii)