The challenges EV start-ups are facing

While the demand for electric vehicles is forecast to grow strongly and barriers to entry are lower, EV start-ups are set to face several hurdles in terms of production ramp-up, financial backing and talent retention

Sales of plug-in electric vehicles (PEV) totaled to more than 2 million units in 2018, a 63% increase from the previous year, according to the IEA’s Global EV Outlook 2019. PEVs accounted for 2% of global light-vehicle sales in 2018, which is a quantum jump from 0.3% in 2015. If recent announcements by OEMs on electrification are any indication, PEVs will continue to record strong growth over the next decade. IHS Markit forecasts production of battery electric vehicle (BEV) to be over 15 million units by 2031, accounting for around 12% of total light vehicle production in that year.