When the COVID-19 pandemic drastically restricted mobility worldwide last year, few industry analysts predicted strong growth for electric vehicles. Yet it turned out to be a banner year. Even while overall car sales fell 15%, automakers sold 3 million electric vehicles in 2020, a 40+% increase over the previous year.1
A combination of trends converged to drive this dramatic growth: lower-cost batteries that can hold a charge longer, more charging stations, supportive government policies, and improvements in autonomous driving technology. Traditional auto manufacturers were also determined to expand their electric vehicle fleets to compete with industry leader Tesla.
With an industry projected compound annual growth rate of over 20% from 2019 to 2027, Jennison Associates’ Global Equity team believes the electric vehicle boom is just beginning and will evolve into an engine for larger disruptions in the transportation industry.2
1 Source: Statista as of January 2021.
2 Source: Statista as of March 2021.