Electric Vehicle Sales Expanding

California has followed the lead of the EU by implementing new restrictions prohibiting the sale of new gasoline-powered vehicles and trucks for the next 13 years

Electric Vehicle Sales Expanding
Photo by CHUTTERSNAP / Unsplash

With rising concern about climate change, the market for electric vehicles (EV) is expanding at a strong clip around the globe.

According to EV-Volumes statistics, 778,092 new passenger plug-in EVs were registered in July 2022, a +61%yoy increase.

More than 4.9 million new passenger plug-in EVs have been registered globally so far this year, compared to 6.5 million in the whole calendar year of 2021.

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EVs already account for roughly 12% of global automobile production and are projected to expand as policymakers begin to focus on sustainable energy alternatives.

EU -US and Electric Vehicle

As part of efforts to clean up road transport, legislators in the European Parliament agreed earlier this year to mandate that all new car and van sales should be zero-emission by 2035.

California has followed the lead of the EU by implementing new restrictions prohibiting the sale of new gasoline-powered vehicles and trucks for the next 13 years, a step aimed at tackling climate change that might hasten the country's transition to EVs.

As EVs have become a more recent compelling element driving the expanding demand for smart LEDs in automotive, we believe the spread of this technology will drive the margin expansion and quick growth of our local player, DOGT, in the next years.

Maintain POSITIVE

MIDF says it maintains its positive stance on the EV sector.

"While we recognize that the technology sector continues to be weighed down by rate rise pressures and other macroeconomic difficulties, we remain POSITIVE on the sector given that demand for EV, AI, and 5G related products remain intact and are critical enablers to ignite the digital economy worldwide.

"Artificial intelligence (AI), automotive electronics, augmented and virtual reality (AR/VR), and other developing technologies rely significantly on the semiconductor sector for computational power.

"As a result, we reiterate our positive view on this industry, which is poised for exponential development as a result of its adoption and integration," it says.