- EY has predicted that EVs will surpass fossil fuel cars sooner than expected.
- Europe will lead the switch with EV surpassing fossil fuel vehicles sales by 2036.
Ernst & Young has predicted that EV sales in the US, China, and Europe will surpass fossil-powered vehicles five years sooner than previously expected. According to EY’s latest forecast, fossil fuel-powered vehicles will represent just 1 per cent of global vehicle sales by 2045. EY predicts that Europe will see the most growth as EV sales will surpass fossil fuel vehicles by 2028, while the US will see the most EV sales by 2036.
Randall Miller, EY Global Advanced Manufacturing & Mobility Leader, notes that the EV drive will be led by “a mix of changing consumer attitudes, ambitious climate-focused regulations and technology evolution.” “While the automotive industry has begun to more fully embrace the move toward electrification, the impact of this seismic shift is arriving sooner than many expected,” Miller adds
It’s not only the auto industry that will have to adapt. “This new outlook also has implications for governments and energy industries in terms of infrastructure and electricity generation and storage, and forward-looking organizations are already using this data to help ensure a smooth transition to this new EV-dominated market,” Miller added.
Contrary to popular belief, the oil industry is not oblivious to what’s going on — oil giants are responding to the news in ways both positive (investing in EV charging companies) and negative (hyping hydrogen in hopes of derailing or delaying the transition to batteries).
With many countries adopting net-zero emission targets, automakers are switching to electric vehicles production earlier than anticipated. In addition, governments are implementing policies aimed at encouraging consumers to switch to electric vehicles, attract new EV factories and battery plants.