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The electric vehicle industry ramps up in 2021 despite a sales slump in 2020

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Although the electric vehicle industry faced a sales slump in 2020, the EV market has been in the front of a lot of business initiatives so far in 2021. Increased  public awareness of climate change combined with regulatory efforts to reduce fossil fuel consumption  has created an enticing market for EVs to truly thrive in the upcoming years; Deloitte actually expects  EVs to account for 32% of new car sales by 2030

Overall electric vehicle sales declined by 25% in the first quarter of 2020 with U.S. sales declining by 33%. In March 2020, the U.S. government revised fuel-economy standards to a 2026 target of 40 miles per gallon, from 54 mpg. According to McKinsey’s Electric Vehicle Index,  the current low oil prices have been contributing to the EV slowdown since it is significantly lowering the total cost of ownership for vehicles powered by internal combustion engines. Other reasons why consumers have been shying away from investing in EVs include the  lack of charging infrastructure outside of major cities, and the unknown costs associated with EV upkeep. 

Eight months after those new standards were set, President Biden proposed new policies, intending to accelerate the adoption and production of electric vehicles. Zero Emission Transport Association (ZETA) was launched in November 2020  to advocate national policies that would enable 100% electric vehicle sales throughout the light-, medium- and heavy-duty sectors by 2030. The association pledged to deploy more EV chargers, electrify the federal vehicle fleet and send strong market signals to demand emissions reductions, ultimately positioning the U.S. to lead the clean transportation race. 

Car manufacturers have been quick to produce more electric vehicles and boost sales of existing models — about  450 new EV models will be launched through 2022. Here a few developments and partnerships from manufactures and other industry leaders that have been recently making headlines: 

While large carriers often  offer auto insurance for specific electric and hybrid vehicle models, a handful have started working directly with car manufacturers to offer a simplified insurance-purchasing experience: 


In April 2021, President Biden proposed a call fo  $100B in EV rebates  as well as a proposal for a  $7,000 tax credit  for EV buyers, to further entice consumers and dealers to seriously consider EVs. Neither proposal has been decided on, but the conversation alone could drastically alter EV adoption in the U.S.

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