Electric Vehicle sales in Asia are plummeting.

Makoto Uchida, the CEO of Nissan Motors, was hoping for the financial recovery of his company after uneventful three months of the novel coronavirus pandemic. The firm is famous as a frontier in the EV market with its Nissan Leaf. Makoto says that it will require more financial restructuring before they can realize profits.

Uchida reports that they will be unveiling new electric cars with a driving assistance technology with the hope that the market positively responds to it, especially China. He said that Nissan is a step ahead to transition consumers into EV technology. Shortly, Volkswagen’s response came in detailing its plan to take over 50% of the China market in their collaboration with JAC Motors, thereby raising its market share to 75%. On the other hand, Tesla, May’s best-seller in Evs, has announced their contract with a Chinese bank to take up a loan for scaling up the Gigafactory Shanghai production firm.

However, these plans are out of context considering the current short-term sales figures. China, for instance, is posting low sales figures throughout the automobile market despite the annual growth propelled by government incentives. Consumers are not confident with the vehicles, especially with the meddling of the government. The customers are curious to understand how there’s no expansion in other markets. The situation is contrary to Europe, where consumers are flooding the market with demands for Evs to solve the long-term environmental pollution problem.

Experts idealize that the government involvement in the automobile industry is confusing consumers and therefore deterring them from buying. This theory is perfect considering the subsequent fall in targets of the carmakers. Additionally, consumers are stranded with the massive influx of a variety of vehicles and, therefore, unable to choose the car worth their money value.

China’s sales plunged with an expectation of government subsidies cut. However, the industry still generates over 6 billion yuan from state-owned firms while calling for the layoff of more than 2000 workers. After witnessing the downturn in sales, Beijing says that the subsidies are going to have a two-year extension. However, experts speculate that this consumer luring technique leaves them in dismay whether to venture the EV purchase or not.

Meanwhile, Europe is experiencing a definite surge in electric car sales for the first three months of 2020.  After that, there is a drop amidst the COVID-19 pandemic. The EU further promotes EV transition with stringent policies on emissions and gives incentives for electric vehicle manufacturers. This move accounts for EV growth in the region.

EV manufacturers in Asian countries are struggling because of the stringent regulations on using Lithium-ion batteries rather than conventional lead-acid batteries. Additionally, lowering costs for EV cars is an early move that is detrimental for carmakers given their potential for massive purchase.

Finally, another factor burdening the market is the few batteries charging stations. This factor renders the market impenetrable unless the firms install charging stations countrywide.