Electrification of the automotive industry is a future in which perhaps every advanced economy is following in the footsteps of. This is one of the most effective ways to reduce the negative impact of human activity on the environment as much as possible, which is currently considered one of the biggest global issues.
Several well-known carmakers have committed to a full or at least partial transition to electric cars by a certain year, mostly by 2030.
Now the financial and consulting company AlixPartners is coming up with a new forecast regarding the future of the car market. He states that by 2028, the sale of electric cars can reach up to a third of the total sales of new vehicles. By 2035, it should be more than half, more precisely 54%. Demand for electric vehicles is expected to increase in the future.
In other words, according to AlixPartners, one in three new cars sold by 2028 will be electric. For comparison, in 2021, electric cars gained a share of only 8% worldwide. There was no improvement in the first quarter of the current fiscal year. The share reached less than 10%. The information was provided by the server Teslarati.
Huge investments are necessary
According to the annual report Global Automotive Outlook it is possible, but not easy, to fulfill the prediction. Carmakers and their suppliers would have to invest about $ 527 billion in electric cars and batteries by 2026. That’s more than double the 5-year plan for 2020-2024, the agency writes. Reuters.
The electromobility sector has recently seen an increase in investment inflows, which means that its growth is necessary. Companies invest huge amounts of capital in electromobility projects, without a guarantee of innovation or success. Growth is needed to cover huge expenditures. These have in some cases reached up to $ 35 billion.
A complete change in production policy
The process of switching from incinerators (ICE) to electric vehicles (EVs) will also require drastic model changes within plants, employees and the entire workflow. Some companies could benefit from splitting their operations into ICE and EV production, as Ford, for example, did earlier this year.
These two divisions require different amounts of raw materials with different prices. In May of this year, the price of raw materials for burners was around $ 3,662 per vehicle. In the case of electric cars, it was up to $ 8,255 per vehicle.