Sales for electric vehicles are set to increase at Tesla and Panasonic this year, marking a major expansion in the nascent electric car industry, as demand for the vehicles surges.
Sales for the Tesla Model S and Model X will reach 2.1 million units in 2020, a 10 per cent increase from 2016, and a record for electric cars, according to industry analysts.
In contrast, Tesla has sold fewer than 400,000 of its electric vehicles so far this year.
Sales of Panasonic’s new Panasonic electric vehicle, which is expected to go on sale later this year and has a range of 250 kilometres, are also expected to reach 2 million units.
The growth for Tesla is expected partly to be driven by the launch of its new Model 3 sedan.
Tesla’s Model 3 has been plagued with delays and glitches.
The car has been delayed in some markets because of the Model 3’s high cost of production, including a $2,000 fee to get a new battery.
The Model 3 is also a key component of the automaker’s electric vehicles strategy, and the automakers plans to ramp up sales of electric vehicles in the next few years.
“This is the second year in a row we are seeing an increase in the number of Model 3s sold,” said Robert Noyce, an analyst with Autotrader.
“I don’t think this is the beginning of the end for electric vehicle sales.”
The Tesla Model 3, which will be sold by the end of 2020, is expected in Canada as early as 2021, Noyces said.
Tesla said it has reached a milestone of selling more than 5 million Model 3 sedans in the U.S. over the last two years.
Tesla has said that it expects to have about 2 million Model S vehicles on the road by 2021, a goal that analysts have said is likely unrealistic.
The auto giant has not announced how many Model 3 vehicles it will make in Canada.
The Tesla Roadster, a luxury electric car that can go from zero to 60 in about six minutes, has become a benchmark model for the Model S. The company has been selling the Roadster in China and the U, but those models have not yet been widely available.
“The Roadster has been a real game changer for the electric vehicle segment,” said Josh Riddle, senior analyst at GTM Research.
“It’s a model that has helped propel Tesla’s EV program forward.”
A Tesla Model X crossover car is shown at a show in Toronto, Ont., Canada, on Oct. 29, 2021.
The automaker is expected at least to sell about 50,000 Model X cars in 2021, Riddle said.
In addition to selling the Tesla Roadsters, Tesla plans to sell the Model X, a smaller SUV that has the same range and can go further than the Roadsters.
“We are going to see more Model Xs sold in the coming years,” NoyCE said.
“That is just a natural progression of what we are trying to do.”
Tesla is also expected this year to introduce a smaller electric sedan, called the Roadrunner.
The Roadrunner will be the company’s first all-electric car.
The electric sedan will have a range up to 90 kilometres on a single charge, compared to the Roadrunners 120 kilometres.
The price of the Tesla’s Roadrunner is expected near $30,000, compared with about $40,000 for the Roadline and Roadster.
Tesla is aiming to sell up to 5,000 vehicles a year, up from the current 3,000 per year.