Consulting firm AlixPartners said on Wednesday that electric vehicles will account for 33% of global sales by 2028 and 54% by 2035. Last year, electric vehicles accounted for less than 8% of global car sales, and in the first quarter of 2022, they accounted for just under 10%. Reuters reported that AlixPartners said at its annual Global Automotive Outlook that in order to support growth demand, automakers and suppliers expect to invest at least $526 billion in electric vehicles and batteries from 2022 to 2026. This is more than double the $234 billion forecast for electric vehicle investment from 2020 to 2024. Mark Wakefield, co-head of AlixPartners' automotive business, said these higher investments "now make the growth of electric vehicles inevitable." Mark Wakefield added that the automotive industry still faces economic and supply chain challenges in the transition from internal combustion engine vehicles to electric vehicles. Its transformation requires "significant changes to the operating model, not only factories and employees, but the whole way of working." Some companies will benefit from divesting ICE and EV businesses. As of May 2022, raw material prices for electric vehicles are reportedly more than twice those for internal combustion engines. Elmar Kades, co-head of the automotive industry, said the transition from internal combustion engines to electric vehicles will cost automakers and suppliers a cumulative $70 billion by 2030. AlixPartners also expects supply constraints to continue until 2024, and predicts that total global auto sales will fall to 79 million this year and climb to 95 million in 2024. Ziji Micro Network |
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