The comprehensive report asserts that by the year 2040, a massive 55 per cent of all global car sales will be for electric vehicles. Bloomberg claims that annual EVs sales will initially grow to 11 million in 2025 before topping 60 million vehicles in 2040. By this time, EVs will account for 33 per cent of all cars on the roads.
One of the key reasons for the jump in sales will be due to falling prices of electric vehicles. The upfront costs of EVs should become competitive on an unsubsidized basis starting in 2024 and by 2029, EVs should reach parity with gas and diesel alternatives without incentives.
Additionally, the number of EVs offered will swell significantly. There are currently 155 electric vehicles available for sale around the world but as automakers increase their investment in such vehicles, there are expected to be 289 models available by 2022.
Unsurprisingly, China is tipped to lead the transition to electric vehicles. By 2020, the country may account of 50 per cent of the global EV market. In 2025, EVs will account for 19 per cent of all new passenger vehicle sales in the country. By the same year, EVs will represent 14 per cent of sales in Europe and 11 per cent in the United States.
As EVs become more popular, sales of ICE vehicles will start declining in the mid-2020s.