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,The way forward: A delivery rider driving a Mahindra Treo Zor EV (second from left) waits at a pedestrian crossing in Uttar Pradesh. Experts says buses and two and three-wheelers will maintain the top EV adoption rates globally. — Bloomberg

NEW YORK: Electric vehicle (EV) adoption is accelerating thanks to improvements in battery density and cost, more charging points, and government policies that make driving dirty cars more difficult.

Still, if any country is going to meet its net-zero emissions targets in the next 30 years, more needs to be done to clean up road transportation.

Passenger EV sales are projected to increase sharply, rising from three million in 2020 to 66 million in 2040, according to BloombergNEF’s Economic Transition Scenario. Globally, EVs will represent more than two-thirds of passenger vehicle sales in 2040. Europe and China are leading the transition.

Sales of internal combustion engine (ICE) vehicles have already peaked. In Europe, battery EVs are approaching price parity with ICE vehicles.

Battery prices fell with manufacturing and tech upgrades and higher demand.

Buses and two and three-wheelers will maintain the top EV adoption rates.StarCarSifu

As a world leader in manufacturing lithium-ion batteries, China is benefiting from the rising demand for EV battery packs.

The European Union is trying to catch up, setting an ambitious goal of supplying enough batteries to meet its own demand by 2025.

There are more than 500 EV models on the market worldwide. On average, EVs introduced in 2020 could travel 359km before needing a charge, up from 166km in 2012. In China and Europe, charging spots more than doubled in two years.

Alternative drivetrains, fuel economy, and shared mobility will impact oil demand; however, nations still won’t reach net-zero by 2050 without doing more.

Some EV makers are going public using special-purpose acquisition companies. — Bloomberg