Sales of electric vehicles (EV) increased by 121% globally during 2021, with the leadership of China reaching 3 million units, while in Argentina the trend is still channeled through the hybrid car segment, of according to the Electric Vehicle Sales Review Full Year 2021 published by the international consulting firm PwC.
Chinese sales that represented a local increase of 172% compared to 2020reflected buyers’ response to incentives ahead of their expected reduction, while sales in major European markets also showed substantial growth, with segment patents rising 83% in Germany and 76% in the UK. The US market, meanwhile, is showing promising signs of growth fueled by some popular models, with sales there up 62% from a year earlier.
Although in global terms there was strong growth in the last quarter of 2021, it was not as high as the rest of the year and this slowdown can be attributed to the global shortage of semiconductor chips and concern about the Covid-19 pandemic, the report highlighted.
Regarding the local situation, Jorge Zabaleta, a partner at PwC Argentina, a leader in the automotive industry, clarified: “Although there are very few electric cars in Argentina, the market for hybrid cars -which combine a combustion engine with an electric one- is growing. Many models have entered the market driven by import benefits (reduced tariffs or no tariffs) in various jurisdictions.”
In recent years, a series of import regimes for hybrid, electric or fuel cell (hydrogen) vehicles have been established, for which the large automakers receive tariff benefits for the commercialization of these cars in Argentina. This government policy was recently renewed with effect until March 2023.
“There is no doubt that the electric car market will continue to grow globally in the coming years. What is under review is the pace of that growth because there are factors that stimulate it and others that act as a potential brake” says Zabaleta.
“Strong CO2 emission reduction targets, the need to meet capital markets demand for accelerated electrification, and the mandatory phase-out of internal combustion vehicles in certain territories, are encouraging manufacturers to produce more electric cars. Besides, consumers, increasingly aware of the environment, are launched into the market for a growing offer of new models”, reported the expert.
In Argentina, sales of hybrid and electric vehicles amounted to 5,871 in 2021, with an increase of 148% compared to the previous yearas reported this Sunday by the Association of Automotive Dealers of the Argentine Republic (Acara).
The growth of the commercialization of this class of automobiles was of such magnitude that in 2021 55% of all the operations carried out since they began in Argentina in 2010 were concentrated, the entity highlighted.