More and more people are shopping online due to COVID-19. This shift to online shopping is driving demand for home delivery.
As the coronavirus continues to affect the market, growth is likely to continue to grow, increasing the demand for light commercial vehicles (LCVs).
The European Automobile Manufacturers Association recently reported that the new LCV market in Europe contracted by 36.4% in the first five months of 2020.
Others believe that the pandemic will cause a more profound shift toward home delivery which will continue into the long-term. The drop in pollution levels due to travel restrictions provides demonstrable evidence to policymakers of the benefits of non-combustion engine vehicles, bringing more exposure to electric vehicle OEMs.
Håkan Samuelsson, Volvo CEO, believes that COVID-19 will accelerate the move to electric vehicles, as well as increasing government support.
A key driver is falling battery prices, bringing an advantage for light commercial vehicles (versus cars).
One concern that may be affecting LCV purchases is: range anxiety. Evidence suggests that the daily range requirements can already be met with current eLCV technologies.
An IDTechEx market forecast report, “Electric Light Commercial Vehicles 2020-2030“, provides a 10-year outlook for the developing eLCV market in China, Europe, the US, and the rest of the world. The report has background detail on players, technologies, and TCO considerations and will help companies make informed strategic business decisions.