The electric car is about to go mainstream in Europe with 2020-2021 as a tipping point, due to Europe’s strict CO2 reduction (95 g/km) requirements for the car industry.

From 60 ‘electric models’ available at the end of 2018, Europe will have 176 models on the roads in 2020, 214 models in 2021 and 333 models expected by 2025, according to an analysis by Transport and Environment (T&E).

Monster fines

The European car industry is ramping up the development of the electric car, feeling pressured by the EU which is threatening monster fines if they fail to achieve the strict CO2 reduction (95 g/km) requirements by the end of 2020.

The report, released on Thursday, predicts the production of electric cars to multiply six-fold between 2019 and 2025, reaching more than 4 million EVs, being more than 20% of the EU car production volumes.

T&E expects there will be enough production capacity in Europe to have enough batteries to power this fleet of electric cars.

56 million electric vehicles to be sold per year by 2040

American news and analysis agency, Bloomberg, is projecting some numbers for the global market at the same time as T&E, giving an even higher estimation.

The agency predicts that some 56 million electric cars will be sold per year worldwide in 2040, surpassing conventional vehicles with an internal combustion engine.

In total, Bloomberg counts on a worldwide electric vehicle fleet of 550 million, while the oil industry and the OPEC are predicting it will only be 300 million.

A critical factor for the expansion of the electric car will be the drop in prices of batteries, decreasing with a factor six over nine years.

Consumers will be more and more aware of the cost-effectiveness of electric vehicles with far fewer parts and maintenance requirements, and governments will push them with subsidies.

Bloomberg expects car-sharing platforms to go massively for the electric car with 8 of 10 vehicles being an EV by 2040.