Global | The shift to driving on electricity is speeding up

2021 looks to be the year hybrid and electric vehicles, or xEVs, break into the
mainstream. We project global xEV sales as a share of total new light-vehicle
sales will reach 16% in 2021, up from 11% in 2020 – xEVs’ largest annual gain in market share ever. By 2030, we see that share reaching 44%.

What you will learn:

  • Our new automotive forecasts by fuel type show global xEV
    sales as a share of total sales reaching 16% in 2021, up from 11% in 2020 – xEVs’ largest annual gain in market share ever. Generous incentives and stringent emission regulations mean Europe is set to lead the shift to electrification.
  • We estimate that falling battery costs will enable battery electric vehicles to reach cost parity with traditional petrol and diesel vehicles from the mid-2020s and will become cheaper to produce than traditional vehicles from the late2020s, prompting an acceleration in global electric vehicle sales growth.
  • The shift to xEVs will also continue to change traditional automotive supply chains. For instance, electric vehicles have less mechanical complexity and require fewer moving and wearing parts relative to traditional petrol or diesel vehicles.
 

Topics: Manufacturing, Electric cars, Global, Europe, Industry, Climate Change

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