But there’s still a huge amount of work to do for EVs to fulfill their potential, and governments can help. Here’s where they can start:
Beyond China, the EU and the US, EV growth has been much slower. Carmakers need to strengthen supply chains and scale up production quickly, and governments need to support this by providing manufacturing incentives and removing red tape.
Offer tax credits for consumers
Expanding EV sales in economies beyond China, Europe and the United States will require more than carmakers’ efforts to broaden their electric offerings outside the major markets. Governments will need to push through policy reforms and provide financial support to help make EVs the most affordable option. They will also need to build out charging infrastructure to ensure there are enough chargers for a growing population of EVs.
Countries across the globe are competing hard to try to be the leaders in this new emerging energy economy. And this competition is necessary — it’s what’s driven the huge cost declines in solar, wind and EV batteries in recent years.
Today’s energy crisis is creating extraordinary difficulties, especially for the coming winter. But it has also opened the door wider for the new global energy economy to replace more of the old one. The stunning growth of EVs is just beginning, and with government support and continued technological advances, it can take hold much more quickly.