The Covid-19 pandemic’s acute disruptions have largely ended, and the automotive sector has moved into a post-pandemic normalization. Early assessments by the Congressional Research Service underscored the severity of the shock; since then, WHO declared in May 2023 that COVID-19 is no longer a public health emergency, and world motor-vehicle production rebounded above 93 million units in 2023 with further normalization in 2024.
The CounterPoint Research official website now reflects a market that has shifted from supply-constrained conditions to more balanced demand and inventory. Globally, electric-vehicle sales surpassed about 14 million in 2023 (roughly an 18% share of new cars) and grew further in 2024 to around one in five, with China leading volumes and Europe and the U.S. showing mixed but continued growth.
Another ongoing question that the automotive industry faces is how lasting the pandemic-era shift toward cleaner technology will be. Now, buyers weigh efficiency, charging access and total cost of ownership alongside performance; this has resulted in continued interest in vehicles that produce little to no tailpipe emissions, even as adoption varies by region, segment and price point.
What Has Resulted by People Driving Less Due to COVID-19
Stay-at-home orders in 2020 temporarily reduced traffic worldwide, and many countries recorded sharp, short-lived drops in carbon dioxide emissions. In fact, in terms of impacts on the environment, NASA has stated that one of the positive effects was “seeing better air quality with less traffic.” A Nature Climate Change research shows that daily global CO2 emissions decreased by about 17% at the peak in April 2020 compared with mean 2019 levels. Since then, driving activity has largely rebounded to, or slightly above, 2019 levels in many countries, though remote work and efficiency gains have tempered fuel use and per-mile emissions.
The International Energy Agency (IEA) says that electric car sales have become a structural growth engine rather than a temporary outlier. It reports that the number of electric cars sold worldwide exceeded about 14 million in 2023 (roughly an 18% market share) and continued to grow in 2024, with early-2024 sales around 25% higher than a year earlier. IEA’s report on how electric cars remain a bright spot now shows EVs accounting for roughly one in five of total global car sales.
It’s Getting Easier to go Green
An acceleration of green technology has been seen throughout the decade, especially in how the electric market has grown in demand and production. This results in significant price drops, making green tech more affordable. A BloombergNEF’s annual long-term forecast indicates that global average lithium-ion battery pack prices fell to a record low in 2024, supported by lower raw-material costs, rising LFP share and manufacturing scale.
BloombergNEF reports that pack prices hit a record low in 2024; continued manufacturing improvements, chemistry shifts such as LFP, and scaling production are expected to keep costs trending down and support stronger demand
The development of electric charging infrastructure makes green technology more accessible. Just a few years back, the lack of charging stations was a deterrent for consumers looking into purchasing an electric car. With charging stations emerging worldwide and people wanting to get into a more eco-friendly lifestyle, electric cars are more relevant than ever. The electric vehicle industry is so prominent that countries are creating policies to incentivize citizens that buy electric vehicles. In recent years, the global stock of publicly accessible charge points surpassed 5 million, the U.S. public network grew past 200,000 ports, and the European Union accelerated high-power corridor coverage with stronger standards on uptime and payments. Organizations like the Environmental Defense Fund continue to highlight state and national commitments to zero-emission trucks and buses to help mitigate the negative impact carbon dioxide and greenhouse gases have on our health and the planet.
Start-Ups On The Rise
An automobile forecast conducted by J.D. Powerin the early pandemic years chronicled sharp short-term declines, but today forecasts emphasize normalized supply and steady demand. BloombergNEF’s latest outlook points to continued global growth in EV share through the 2020s and 2030s across personal vehicles, buses, commercial vehicles and two-wheelers, supported by falling battery costs and expanding charging. This implies a progressively larger EV share of the global fleet over the next two decades.
More manufacturers are showing interest in electric vehicles (EV) and the attention that this sector has been getting sets a precedent for other companies. Established players and newcomers alike are broadening EV lineups and competing on price, software and charging performance. Earlier entrants such as Byton, Bytonand Lucid illustrate both the challenges and opportunities of scaling new brands, and a new wave of tech-affiliated entrants and cross-border partnerships has intensified competition across global markets.
Will Auto Insurance for EVs be Impacted?
A Bankrate.com article states that typically, electric cars have higher insurance rates than their conventional counterparts. Recent U.S. data indicate average EV premiums are about 20%–30% higher than for comparable gasoline vehicles, largely due to higher repair costs, battery risk management and ADAS calibrations, though differences vary by model and insurer.
Bankrate’s research team and other national quoting datasets show broad auto-insurance inflation since 2020, with EVs still carrying an average premium uplift. Thecost of insurance varies widely by state, model and coverage, and the average Electric Car Insurance quotes remain higher than for many internal-combustion counterparts. Big brand insurance companies like Allstate, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm and USAA provide policies for EV, and even Tesla offers car insurance to Tesla vehicle owners. An important step in the process of shopping for car insurance is to compare multiple quotes and consider available telematics or repair-network options to ensure you are getting the best possible rate.
Post-Pandemic Public Policy Will Influence EVs Landscape
What the future holds for electric vehicles is shaped increasingly by policy. What is certain is that the expansion of EVs in the United States relies heavily on government regulations and incentives to encourage consumers to invest in electric cars. Anarticle from CleanTechnica describes how EU regulatory efforts have driven steady EV uptake; today, the EU has adopted a 2035 target for zero tailpipe-emission new cars, and the EU’s BEV share sat in the mid-teens in 2023 with monthly variability in 2024 as incentives and affordability evolved.
The change to more environmentally friendly practices is accelerating in the U.S.; the House Democrats released a net-zero plan, including 100% EV sales by 2035 was an early signal, and since then the federal government has implemented point-of-sale clean-vehicle tax credits, finalized stronger tailpipe standards for model years 2027–2032, and funded a national fast-charging network along highways. A Pew Research Center study demonstrated that two-thirds of Americans think the government should do more on climate. Even though there is still a long way to go, there are various support measures in the works like building charging stations and public co-funding corporate fleets for bulk procurement of electric cars, buses and trucks. These could support the continued growth in electric vehicle sales while impacting economic activity by employing millions across an entire greener supply chain.
Bottom Line
One thing we know for sure, the pandemic’s acute effects have faded and the automotive industry has largely normalized. But electric vehicles remain well placed to shape the future market, with improving costs, broader model availability and expanding charging. We are in the midst of an automotive transition toward greater sustainability. If you are currently shopping for a new car, an EV—or a hybrid—might be what you are looking for.
