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Electric Cars Confirm their “Megatrend” Status

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Electric cars

The electric car industry seems to be one of the best sectors to invest in this year. With constant new technologies, 2019 has only confirmed EVs megatrend status.

With an increasing demand coming from China, this industry requires special materials and new technologies which help tech companies in this new industry.

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Some experts are even planning the creation of an index specific to the electric car, which, according to some, could launch very soon.

How have EVs become a megatrend?

According to a study published by French media BFM Business, the electric car has all the assets of a “megatrend” – a term invented by the eighties futurologist John Naisbitt.

According to a report published by the International Energy Agency in 2018, global electric car fleet surged by 50% in 2017 “especially thanks to China, which represents one in two electric cars sold. 580,000 units were sold there in 2017, which is 72% more than in 2016. On the other hand, 280,000 were sold in the United States”, says the report. 

Read on Alvexo: “Gold Prices Reached New Records In 2020”

220 million EVs sold by 2030

However, EVs are still currently a minority when it comes to purchases, even in the most eco-friendly countries. 

For example, only 39% of the car fleet in Norway is electric vehicles in 2017, 11.7% in Iceland and 6.3% in Sweden.

Since the industry is preparing itself for a post-oil era, it is nonetheless transitioning slowly to electric cars. As a result, the demand for electric cars is set to increase in the coming years.

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As a matter of fact, a study published by Digital Trends, “96% of EVS owners said they would buy or lease another car”

According to the report published by the International Energy Agency “the total number of electric vehicles in the world could reach 220 million by 2030”.

Will there be a dedicated EVs index?

This might be the biggest news in this report: companies that develop products dedicated to the electric car market are thinking about launching a dedicated index.

In other words, nearly 80 manufacturers of batteries and technology companies linked to electric vehicles could well regroup under a Xtrackers Future Mobility UCITS ETF index fund.

The goal of this project is to replicate Nasdaq’s Yewno Global Future Mobility Index.

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.