One-third of car sales might be electric by 2028, says analysts

Robert Besser
26 Jun 2022, 21:43 GMT+10

EV sales could reach 33 percent globally by 2028, and 54 percent by 2035, according to global consultant AlixPartners
In 2021, EVs accounted for less than 8 percent of global sales, and just under 10 percent in the first quarter of 2022
At its annual Global Automotive Outlook briefing, the firm said to support that demand, automakers and suppliers must now invest at least $526 billion in EVs and batteries

NEW YORK CITY, New York: Electric vehicle (EV) sales could reach 33 percent globally by 2028, and 54 percent by 2035, according to global consultant AlixPartners.

In 2021, EVs accounted for less than 8 percent of global sales, and just under 10 percent in the first quarter of 2022.

At its annual Global Automotive Outlook briefing, the firm said to support that demand, automakers and suppliers must now invest at least $526 billion in EVs and batteries between 2022 and 2026, more than double the five-year EV investment forecast of $234 billion from 2020-2024.

Mark Wakefield, co-leader of the firm's automotive practice, said those higher investments "have now made EV growth inevitable," adding that the industry still faces economic and supply chain challenges during the transition from internal combustion engine vehicles to EVs.

The transition will require "drastic changes to operating models, not just plants and people, but the whole way of working," he said, as reported by Reuters.

Raw materials for EVs also cost more than twice of those for conventional autos: $8,255 per vehicle vs $3,662 per vehicle, as of May 2022.

According to Elmer Kades, co-leader of automotive practices, the transition to electric vehicles will cost automakers and suppliers a cumulative $70 billion by 2030.

Total vehicle sales in the U.S. are expected to rise to 16 million in 2023 and peak at 17.5 million in 2024, before declining from 2025 to 2026.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Asia Pacific Star.

More Information

30 ℃

Mostly Cloudy in Seletar

Asia

Section

Chinese aeroplanes remain grounded at Kathmandu airport

KATHMANDU, Nepal - While the Ministry of Finance has begun repaying interest on the loans for the planes, a batch ...

'U.S. threatened to topple my government due to independent foreign policy': Imran

ISLAMABAD, Pakistan - According to information released on Friday, Pakistan Tehrik-e-Insaf, (PTI) has hired a lobbying firm with offices in ...

UK summons China envoy over 'aggressive' escalation of Taiwan conflict

LONDON, England: After a furious China extended its largest-ever military exercises to encircle Taiwan following U.S. House Speaker Nancy Pelosi's ...