Electric cars may outsell petrol-fuelled vehicles sooner than expected in 2033, EY’s AI prediction tool says
- EV sales may outpace fossil fuel-burners in 12 years in Europe, China and the US, EY says using an AI-assisted prediction tool
- By 2045, non-EV sales are seen plummeting to less than 1 per cent of the global car market
Consultant Ernst & Young now sees EV sales outpacing fossil fuel-burners in 12 years in Europe, China and the US – the world’s largest auto markets. And by 2045, non-EV sales are seen plummeting to less than 1 per cent of the global car market, EY forecast using an AI-powered prediction tool.
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“The regulatory environment from the Biden administration we view as a big contributor, because he has ambitious targets,” Randy Miller, EY’s global advanced manufacturing and mobility leader, said in an interview. “That impact in the Americas will have a supercharging effect.”
“Many more models that are much more appealing are coming out,” Miller said. “You factor that with the incentives, and those are the raw ingredients that are driving this more optimistic view.”
“The view from the millennials that we’re seeing is clearly more inclination to want to buy EVs,” Miller said.
Additionally, the combination of government purchase incentives for EVs and proposed bans on internal combustion engines in cities and states are accelerating the adoption of battery-powered vehicles.
Europe is forecast to lead in EV sales volumes until 2031, when China will become the world’s top market for electric vehicles.
Vehicles powered by petrol and diesel are still predicted to make up around two-thirds of all light vehicle registrations in 2025, but that will mark a 12 percentage-point decrease from five years earlier. By 2030, EY predicts that non-EV cars will account for less than half of overall light vehicle registrations.