Electric wave: EVs to dominate sales 5 years sooner than expected says EY

Electric vehicle (EV) sales in the US, China and Europe will outstrip all other engines five years sooner than previously expected, said consultancy firm EY in a new study.

Accordingly, EY deployed its 'Mobility Lens Forecaster', an artificial intelligence (AI) powered forecast modelling tool that provides an outlook for the supply and demand of mobility products and services through 2050 to derive these results.

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The latest predictions show that by 2028 EV sales in Europe will surpass those of other powertrains, a trend that will be repeated in China by 2033 and in the US by 2036.

Besides, the analysis shows that by 2045, non-EV sales will shrink to less than 1 per cent of overall sales.

In terms of EV sales volumes, Europe is expected to lead the way until 2031, with China taking the lead from 2032 to 2050.

According to Randall Miller, EY Global Advanced Manufacturing and Mobility Leader: "A mix of changing consumer attitudes, ambitious climate-focused regulations and technology evolution is about to change the landscape of vehicle buying forever. 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."

"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, which will be here much sooner than expected."

As per the report, with the global auto industry continuing to recover from the issues it faced due to the Covid-19 pandemic, it will be met by a new group of car buyers.

Many people who had rejected ownership in lieu of ridesharing and public transport have reassessed in the shadow of the Covid-19 pandemic, added EY analysis.