Electric vehicles could take 33% of global sales by 2028-AlixPartners
Reuters
Published Jun 22, 2022 10:10AM ET
Updated Jun 22, 2022 03:51PM ET
By Paul Lienert
DETROIT (Reuters) - Electric vehicle sales could reach 33% globally by 2028 and 54% by 2035, as demand accelerates in most major markets, consultant AlixPartners said on Wednesday.
EVs accounted for less than 8% of global sales last year, and just under 10% in the first quarter of 2022.
To support that demand, automakers and suppliers now expect to invest at least $526 billion on EVs and batteries from 2022-2026, the firm said at its annual Global Automotive Outlook briefing. That is more than double the five-year EV investment forecast of $234 billion from 2020-2024.
Those higher investments "have now made EV growth inevitable," according to Mark Wakefield, co-leader of the firm's automotive practice.
The industry still faces economic and supply chain challenges during the transition from internal combustion engine (ICE (NYSE:ICE)) vehicles to EVs, Wakefield added.
The transition will require "drastic changes to operating models -- not just plants and people, but the whole way of working," he said.
Some companies will benefit from separating their ICE and EV businesses, he added.
Raw materials for EVs also cost more than twice those for ICEs: $8,255 per vehicle vs $3,662 per vehicle, as of May 2022.
The ICE-to-EV transition will cost automakers and suppliers a cumulative $70 billion by 2030, according to Elmar Kades, co-leader of the automotive practice, including bankruptcies and restructuring.
AlixPartners sees supply constraints continuing into 2024, and expects total global vehicle sales to dip to 79 million units this year, before climbing to 95 million in 2024.
In the United States, total vehicle sales are expected to rise to 16 million in 2023 and peak at 17.5 million in 2024 before starting to decline in 2025-2026.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.