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2020 to be a Crucial Year for EVs: Models to Watch Out for

Although electric vehicles (EVs) have been touted as the next big thing in the auto industry for nearly a decade now, they still account for a small share in global vehicle sales. Despite significant year-over-year rise of around 63%, EVs were merely 2.2% of the global vehicle market in 2018. While EV sales are indeed witnessing growth — especially in key markets like China, Europe and the United States — it seems that automakers are not taking the EV revolution as seriously as they should have.

In fact, for years, it seemed that Tesla TSLA was the only automaker that was playing at the forefront of the EV phenomenon, taking the concept of green vehicles seriously from a real-world functionality standpoint. However, things are likely to change as various big and small carmakers are gearing up to make 2020 the year of EVs, with a wave of new model launches. Stricter emissions and fuel-economy targets are boosting the environmentally-friendly EV market. The EV momentum is expected to reach a new level in 2020 with various attractive, long-range and reasonable vehicles coming up this year.

Future is Green, Competition Heating Up

Sales of EVs had topped 1 million globally in 2017, followed by 2 million in 2018. Global electric vehicle sales rose to an all-time high of 1.2-million units between January and October 2019. It accounted for 7% of total auto sales globally.

According to a Deloitte report, EV sales are expected to cross 4 million by 2020 and may touch 21 million in 2030. Currently, EVs and hybrids make up around 2% of the total automotive market, according to both Deloitte and IHS Markit report. Deloitte expects growth in EV sales to lead to 10% market share gain by 2020.

Notably, China is the key market for EVs with 45% share, followed by Europe’s 24% and the United States’ 22%. The number of EV models available to European buyers will jump from fewer than 100 to 175 by the end of 2020, according to data firm IHS Markit. In the United States, automakers are planning to have a little more than 100 EVs for sale by the end of 2020.

Owners are enjoying the advantages of today’s EVs. These are cost effective and reliable, and have a much stronger battery and availability of sufficient charging facility. The fear of running out of charge before either reaching destination or a charging point is slowly diminishing. With most of the EVs boasting a range of more than 250 miles on a single charge and the charging infrastructure growing rapidly, the range anxiety is almost gone.

As citizens are getting deeply concerned about rising fuel prices and growing climate crisis, EVs seem to be the best solution in hand. Automakers, thus, are working to tap the growing EV market. In the recent past, various major automakers including General Motors GM, Ford F, Volkswagen VWAGY, Daimler AG DDAIF, BMW AG BAMXF, Toyota and Hyundai have come up with EV plans. If the plans materialize, the sector will be able to manufacture and sell about 25 million units (of more than 400 models) by 2025, or account for 20% of all global cars sold, per Frost & Sullivan.

Customers to Get Spoilt for Choices

Options for a new EV in 2020 are likely to get diverse than ever, with stalwarts in the automobile space along with several smaller private players launching multiple EVs and hybrids this year. So it’s not just the EV pioneer Tesla, which is expected to have another big year, with the roll out of Model Y deliveries. Other automakers appear to be finally understanding the immense popularity of EVs and learning from Tesla’s success.

Several new EVs including Tesla Model Y, Ford Mustang Mach E, Fiat 500e, Nissan Leaf Plus 2020, Mercedes EQC, Volvo's XC40 Recharge and Polestar 2, Volkswagen's ID4 Crozz and Audi's e-tron Sportback will hit the roads this year. Audi e-tron, a midsize electric SUV, with a starting price of around $75,000 and an estimated range of 204 miles, will be packed with many superior technology and luxury features.

In December 2019, General Motors had announced that most of its Cadillac brand vehicles will be electrified by the end of 2020. BMW’s Mini Cooper EV, which will be the first widely available all-electric version of the car, is also likely to go on sale in the United States in March 2020, with a base price of $29,900. China’s EV startup, Byton is set to launch M-Byte in its home market this year. With a starting price of $45,000, this all-electric SUV will offer 250miles of range.

Fiat Chrysler’s first fully-electric car, the redesigned 500 Electric, will be launched in late 2020. Vauxhall Corsa-e, with a range of 209 miles, is due to launch in April 2020. Seoul-based Kia Motors also made a splash in the EV market, with its Niro model set to attract budget-conscious buyers. With a starting price of $39,545, it is an all-electric compact with much room and has 239 miles of range.

The electrification trend won’t be limited to cars. Electric trucks, buses and bikes will also be trending in 2020. American startup Rivian is set to come up with its electric pickup by late 2020. With off the charts specs, Rivian made headlines when it unveiled the R1Ttruck at the 2018 L.A. auto show.

A Sneak Peek Into Five Major Upcoming EV Models in 2020

Tesla Model Y: The much-awaited Model Y, which is expected to be out for delivery soon, piqued the curiosity of EV enthusiasts since it was first unveiled in March 2019.  A week back, Tesla Model Y received its CARB certification, signaling that the EV pioneer might release the Model Y ahead of its summer launch window.Essentially a smaller, compact and more reasonable version of Model X, namely Model Y will have a range of more than 300 miles per charge and seating capacity of 7 adults. Model Y would be offered in three variants. The Rear-Wheel Drive Long Range version will retail at $48,000. The Dual Motor All-Wheel Drive Long Range and the Performance version will be sold at $52,000 and $61,000, respectively. Tesla currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Volkswagen ID.3: The all-electric Volkswagen ID.3 is expected to be availablefor sale by the summer of 2020. The German auto giant is currently manufacturing the first batch of ID.3, which will be tested by its employees. ID.3 will be a five-seater in two battery versions— 45kWh and 58 kWh— whereas the 77kWh battery pack version will be a four seater. The 77 kWh-pack, which can travel about 340 miles on a single charge, cannot be combined with a panoramic roof. While Volkswagen ID.3 will likely resemble Golf model from the outside, it will be far roomier on the inside. High-tech touches would include augmented reality heads up display, voice activated controls, LED matrix headlights and keyless entry. ID.3 will be one of the most significant models for the company, after the Beetle and Golf. Rumor mills peg the starting price of ID.3 at around $33,000.

Ford Mustang Mach-E: The first deliveries of Mustang Mach Eare not expected to start until late 2020, with prices starting at $43,895.The Mach-E’s most direct competitor is Tesla’sModel Y, with the two vehicles sharing some similar features, like a large touch screen inside the cabin.Mustang Mach-E will be supported by permanent magnet motors, available with either rear-wheel or all-wheel drive in standard and extended-range battery variants. With a range of more than 300 miles per charge, the model will offer wireless home charging and over-the-air software updates.It features the all-new infotainment system, with the latest connected vehicle technology.

BMW iX3: The electric crossover BMW iX3, which was unveiled in concept form in 2018, is anticipated to hit the roads sometime during this spring. Equipped with 74-kilowatt-hour lithium-ion battery pack, it will offer more than 220 miles of range on a single charge. The iX3 model will benefit from the fifth-generation electric drive system, with electric motor, power electronics and transmission made into one drive component. The electric motor will deliver 286 horsepower and 295 pound-feet of instant torque. The model will be manufactured in China by the country’s state-owned carmaker, Brilliance, for global distribution. 

Volkswagen Porsche Taycan: Porsche’s first all-electric car will be offered in two variants, Turbo and Turbo S, which will be followed by 4S. Pre orders for Taycan 4S has already began and the car is expected to be available for sale in the United States by spring 2020. The Taycan 4S with the Performance Battery will retail at $103,800, whereas the Performance Battery Plus model will start at $110,380. The Porsche Taycan, with around 256 miles of range, is aimed squarely at Tesla’s Model S. Considering its starting price, it is certainly not a car for masses but is bringing a lot of buzz to the EV market and is expected to steal some thunder from Model S.

Last Words

The lineup of EV models for 2020 seems super amazing and promises an unprecedented level of impressive designs, range, and affordable prices. Superior performance and cost effectiveness of EVs are likely open up the market in a big way to once-skeptical consumers. With abundant options available, 2020 is expected to be the big breakthrough year for EVs. In fact, 2020 could be the decade wherein EV market share may grow exponentially, with prices for green vehicles reaching parity with their fossil fuel-powered counterparts.

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