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Global Adoption of Electric Vehicles Faster Than Expected: EY Report

Fasken
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Changing consumer preferences will hasten the already speedy rate of global EV adoption, according to a new report prepared by Ernst & Young Global Limited (EY).

The study predicts that electric vehicle (EV) sales will surpass those of gas engine vehicles by 2028 in Europe. In China, EV sales are expected to overtake gas engine vehicle sales by 2033, and in the United States by 2036. The report predicts that non-EV sales will shrink to less than 1% of overall vehicle sales globally by 2045.

The study notes that the automotive sector will be marketing to a new type of consumer post-pandemic. Many consumers who previously relied on ridesharing and public transportation are now contemplating car ownership. The report cites a previous EY survey in November 2020, which showed that almost 33% of non-owners planned to purchase a car in the next six months. Notably, 30% of both car owners and non-owners indicated that they preferred to purchase an alternative energy vehicle.

The global EV industry is also expected to benefit from strong policy intervention by governments to address climate change. EY cites as examples the Biden administration’s commitment to continue and enhance EV buying incentives, and fund the expansion of the charging infrastructure: incentives to purchase EV vehicles in France, Germany, Spain, Italy, and Austria; and the United Kingdom's commitment to ban the sale of internal combustion vehicles starting in 2030.

EY predicts that these factors point to EV adoption occurring more quickly than previously anticipated.

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