EV is a broad term for vehicles that do not solely operate on gas or diesel. Within the electric vehicle subgroup there are sub-categories of EVs that utilize different innovative technologies such as: (i) battery EVs which are powered solely by electric battery, with no gas engine parts; (ii) plug-in hybrid EVs which are similar to a hybrid vehicle, but with a larger battery and electric motor and a gas tank and (iii) hybrid EVs which are low emission vehicles that use an electric motor to assist gas-powered engines.

As people continue to take action to reduce greenhouse gas emissions and create a more sustainable environment, it is expected that the EV industry will continue to be a growing segment of this clean energy and technology movement. Between 2019 and 2027, the size of the global EV market is expected to increase almost fivefold to reach an estimated global market size of some $803 billion USD by 2027. This translates to a notable compound annual growth rate ("CAGR") of more than 20 percent between 2019 and 2027. The eight million EVs on the road internationally in 2019 are expected to increase to 50 million by 2025 and almost 140 million vehicles by 2030. EV sales are expected to reach almost 14 million vehicles in 2025 and 25 million vehicles in 2030. In fact, many countries around the world are actively encouraging buyers to consider EV's as an alternative to internal combustion engine ("ICE") vehicles, as outlined in figure 1

The popularity of the electric vehicle has been met with difficulties due to limited charging infrastructure. The convenience and availability of public electric vehicle charging stations may prove to be an obstacle for mass adoption of EVs. Consumers are generally concerned that their EVs may run out of charge while they are on the road. Despite this fear, the distance travelled by most urban commuters is much lower than the typical range of an EV. Data from Statistics Canada's National Household Survey in 2011 reported the average Canadian and American takes about 25 minutes to commute to work, which is well with the anticipated TUGA vehicles range of 160km.

Most EV drivers charge their electric cars at public charging stations. The stations may be free, pay-as-you-go or subscription based. Some automakers, such as Hyundai, Nissan and Tesla may provide a complimentary public charger. The industry is moving toward a fee structure based on kWh used, rather than by the time it takes to charge the car. Level 1 charging is the slowest method and will add about 3.5-6.5 miles of driving range per hour of charging time. Level 2 charging is faster but requires installing a charging station, known as electric vehicle supply equipment ("EVSE"). Charging station installation requires a 240-volt or 208-volt electrical circuit. It uses the same standard connector as Level 1 charging, meaning any electric car can plug in at any Level 2 charger. DC ("Direct Current") Fast Charging provides the fastest available charging, but requires a 480-volt connection. Drivers in California may expect to pay 30 cents per kWh to charge on Level 2 and 40 cents per kWh for DC fast charging.

At the end of 2019, there were about 7.3 million chargers worldwide, 2.1 million more than in 2018. About 6.5 million of the chargers were private, light-duty vehicle slow chargers. Private home and workplace charging with level 1 and level 2 slow chargers continue to be the preferred mode of charging for the general public. In 2020, General Motors and EVgo, the largest company to provide public fast charging network for EVs, announced that they plan to add more than 2,700 new fast chargers over the next five years to cities and suburbs, as a catalyst to help accelerate widespread electric vehicle adoption. The level 2 charging stations will be located at high frequency places where customers visit regularly, such as grocery stores, retail outlets, entertainment centers and other hightraffic locations.

The electric vehicle market is expected to reach 233.9 million units by 2027. The growth in the EV market can be attributed to numerous factors such as government policies and regulations that support the adoption and manufacture of EVs, environmental concerns regarding automotive emissions, increased literature on EVs, decreasing prices of batteries, fluctuating fuel costs and the adoption of EVs by traditional automotive manufacturers. The growing deployment of charging stations and increasing adoption of shared mobility is expected to support the growth of this market.

The Asia-Pacific region will likely hold the largest market share due to the increasing demand for EVs, rising number of electric mobility start-ups and growing government initiatives to develop charging infrastructure and adopt incentive programs to promote the use of EVs. There has been a decrease in sales in the second half of 2019 in the two largest markets, China and USA, but the global EVs sales still grew, largely in part due to Europe, which saw 44% growth. The European market is expected to register the highest CAGR by value during the forecast period of 2020 to 2027. The anticipated rapid growth is due to the stringent emission regulations set by the European Union, as well as, the countries' focus on reducing the number of conventional cars on the roads and investment in building extensive charging infrastructure networks across Europe. In 2019, Europe secured €60 billion in investments to produce EVs and batteries. In 2020, electric cars in Norway reached a record high sales shares of 75%, up about one-third from 2019. In addition, sales shares of electric cars exceeded 50% in Iceland, 30% in Sweden and reached 25% in the Netherlands.

According to the Global Electric Vehicles Outlook 2020, the sales of electric cars reached 2.1 million globally in 2019, surpassing a record year of 2018.

The private sector and car manufacturers continue to respond positively to the ongoing changes in the market. Passenger vehicles account for the largest share of the overall EVs market; however it is expected that light commercial vehicles segment will grow as well as fleet operators (such as Uber and Lyft) increasingly adopt the use of EVs to reduce fleet emissions. DHL, an international courier, package delivery and express mail service company, has made a pledge to reach 70% clean operations of last-mile pick-ups and deliveries by 2025, and DB Schenker, a leader in supply chain management and logistics solutions, handling everything from logistics to customized shipping solutions, wants to make its transport activities in European cities emission-free by 2030. The world's major players in the global auto industry have announced plans to exclusively sell electric cars in the near future. For instance, Jaguar plans to sell only electric cars by 2025 whereas General Motors plans to make only EVs by 2035.

Another interesting electric vehicle trend in 2020 relates to the sharing economy. Shared electric scooters, electricassist bicycles, and electric mopeds now available in over 600 cities across more than 50 countries worldwide. An estimated 350 million electric two/three-wheelers make up 25% of all two/three-wheelers in circulation worldwide.

California remains the top market in the U.S. with 47% of the nation's total all-electric vehicle registrations. The cumulative number of plug-ins sold in California increased to about 800,000. For comparison, the total number in the U.S. is almost 1.8 million. Electric vehicle drivers can use more than 70,000 charging points in California, which means one charging point per over 11 EVs. Adjusted for state population sizes, California still led in 2018 with over 650 all-electric registrations per 100,000 residents, followed by Hawaii at 464, Washington state at 378, and Oregon at 297 registrations per 100,000.35 Another 11 states plus Washington, DC recorded over 100 allelectric vehicle registrations per 100,000, while 35 states had fewer than 100 all-electric cars per 100,000 residents in 2018.

The overall light-vehicle sales in California amounted to 1,639,166 units. In total, approximately 132,772 PEVs were sold in California in 2020.

California had 11.96 PEV registrations per 1,000 people in 2018, followed by Hawaii, Washington, and Oregon, which each had more than five PEV registrations per 1,000 people. Sixteen states had PEV registrations greater than two per 1,000 people, while 13 states had less than one per 1,000. Overall, the average PEV registrations per 1,000 people in the US in 2018 was 3.08.

The PEV market in North America is expected to continue to grow in 2021, and Guidehouse Insights expects around 500,000 PEV sales. More states and provinces are likely to commit to banning the sale of light duty internal combustion engine vehicles and pass zero-emissions vehicle mandates. Hawaii and Washington are both considering internal combustion engine bans, while New Mexico and Minnesota are discussing zero emission vehicle ("ZEV") mandates. New Jersey and Quebec announced a gradual phase out of gasoline-powered cars by 2035.

British Columbia is quickly becoming a leader in the ZEV industry. In 2020, BC had the highest uptake of ZEVs in North America with new ZEV sales averaging 9.4%. In total there were 54,469 light-duty EV sales in 2020, more than double the number that were registered in 2018. More British Columbians are choosing ZEVs and we are investing in supporting the increasing demand for ZEVs in BC and North America. In Washington state, Governor Jay Inslee adopted a zero emissions vehicle mandate in March 2020, making Washington the twelfth state to adopt the California mandate. In addition, California Governor Gavin Newsom signed an executive order in September 2020 banning the sale of new combustion-powered passenger vehicles in the state by 2035.

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