As mobility continues to undergo its transformation, electrification and even hydrogen-powered vehicles continue to gain interest. Electric vehicles are clearly continuing their trajectory towards a critical tipping point in the market and some of the attention is now shifting towards non-road transportation – such as aviation and marine. With the continued drop in battery prices and increasing performance, will the future energy for the rest of mobility follow the same path toward electrification blazed by electric vehicles?
Well, we aren’t answering that question, yet. Today, the focus is on electric vehicles and how they are no longer a niche segment of the automotive industry, approaching two million in annual sales. Under increasing pressure to reduce emissions, automakers are now committing billions towards securing raw materials and battery supplies, designing platforms, and building manufacturing capacity for electrified vehicles. In the past decade, sales of all types of electrified powertrains – hybrid vehicles, plug-in hybrids, battery electric vehicles – have grown steadily, with cumulative sales topping 14 million, 4 million, and 2 million, respectively. Check out our on demand webinar “The Mass Market EV” to see just how close we are.
Battery electric vehicles are expected to grow in popularity, but automakers are now facing a crucial hurdle, which is not only making more of them, but also making them profitable – not something commonly done today. With automakers, such as Volkswagen committing $30 billion by 2023 for electric vehicles, General Motors pledging $20 billion to its electrification program through 2025, and Hyundai investing $87 billion to bring 23 battery electric vehicle models to the market by 2025, there are major bets being placed on the future energy for mobility. While money is one thing, three key strategies are emerging – electrify high-priced brands first, balance platform flexibility against commitment, and increasing focus on battery supply chains.
As governments around the world roll back subsidies while tightening environmental regulations – it is a race against the clock for automakers to scale and profit from electric vehicles moving forward. But the reality is that electric vehicles remain less than 5% of overall sales, with consumers citing concerns around limited range, slow charging, and higher price tag.
Are these concerns unfounded?
How do electric vehicles compare when it comes to options, range, and price?
How will other technologies like fast charging change the outlook for electric vehicles?
Find all the key data tends and answers in our executive summary of the new report “The Electric Vehicle Inflection Tracker: 2020 Edition” and see why half the new cars sold in 2035 will be electric.