According to a new survey released by KPMG, auto executives expect EVs to make up 50% of new vehicle sales in the United States and China by 2030.
What is interesting is that these same executives believe that EVs hitting 50% could happen with or without government subsidies.
However, the executives do not expect sweeping changes quickly. They expect a majority of new car sales in the years to come will continue to be combustion vehicles.
The real tilting point for the move to EVs will be when automakers phase out combustion vehicles, rather than governments pushing consumers to buy EVs through rebates.
Earlier this month, a group of automakers and countries at the United Nations Climate Change Conference (COP26) committed to phasing out combustion engines by 2040.
However, the two largest automakers by sales, Volkswagen and Toyota, did not sign-on.
In addition, China, the United States and Germany, which happen to be three of the largest car-buying nations, also failed to sign the commitment.
Some of the more interesting survey results include:
- 77% of respondents believe that EV mass adoption is possible within ten years without government aids.
- 91% of respondents support government subsidies
- 53% of respondents are confident the industry can achieve profitable growth over the next five years.
- 75% of respondents expect their company to sell “non-core” assets in the coming years
Source: Reuters
