By 2025, one out of every six new cars on the road will be electric
A decade ago, the jokes were that electric cars didn’t accelerate fast enough, and usually ran out of energy before they got where they were going. This year, we’ve seen how wrong those jokes were: the trend towards electrification doesn’t show any signs of running out of energy – and it’s moving faster than we previously thought.
As perceptions about cars and carmakers move dramatically, it’s become clear that we’re closer to an electrified world than we might have thought. New research from a UBS Global Autos Survey, released on Tuesday, suggests that by the middle of next decade, global sales of electric cars will hit 16.5 million. That’s a 16% increase from the previous estimates. Researchers, led by Patrick Hummel, said that electric vehicles will make up 16% of all car sales that year – up from a previous forecast of 14%.
Hummel sees this shift playing out in Europe and China particularly. He said: “The shift to electric cars will come faster and in a more pronounced way, fueled by the diesel demise in Europe, battery technology advancements and regulation in China and Europe.”
While traditional carmakers face stiff tests in the coming years, an industry has grown up beneath them to facilitate the cars of the future. Delphi Automotive is at its core: the company has positioned itself, through judicious acquisitions, inward investment, and a forthcoming spinoff, directly at the heart of the trends towards self-driving and electrification. If the latest research is anything to go by, it looks the race towards this future has already begun.
Dominion holds Delphi Automotive in its Global Trends Managed Fund.
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