According to consultancy AlixPartners, sales of electric vehicles might reach 33 percent globally by 2028 and 54 percent by 2035 as demand increases in most key regions.
Less than 8% of worldwide sales last year and just under 10% in the first quarter of 2022 were made up of electric vehicles.
According to the company’s annual Global Automotive Outlook briefing, automakers and suppliers now anticipate spending at least $526 billion on EVs and batteries between 2022 and 2026 to meet that demand. That is more than twice the $234 billion expected for EV investments over the next five years, from 2020 to 2024.
According to Mark Wakefield, co-leader of the firm’s automotive group, these greater investments “have now made EV growth unavoidable.”
Wakefield said that the move from internal combustion engine (ICE) cars to electric vehicles (EVs) is still posing economic and supply chain issues for the industry.
According to him, the transformation would necessitate “drastic adjustments to operating models—not just plants and personnel, but the whole manner of functioning.”
He stated that certain corporations will profit from dividing their ICE and EV operations.
As of May 2022, the price of raw materials for EVs was $8,255 per car compared to $3,662 for ICEs.
Elmar Kades, co-leader of the automotive group, estimates that the ICE-to-EV transition would cost automakers and suppliers a total of $70 billion by 2030, including bankruptcies and restructuring.
According to AlixPartners, supply shortages will likely persist through 2024, and overall global vehicle sales will decline to 79 million units this year before increasing to 95 million in 2024.
Total vehicle sales in the US are anticipated to increase to 16 million in 2023, reach a high of 17.5 million in 2024, and then begin to drop in 2025–2026.