The circulation of electric vehicles is slowly increasing as the price of fuels touches its peak. Sales of electric vehicles are expected to continue to increase in the coming years. EVs currently make up only a small portion of global auto sales. However, it is expected to account for more than half of total vehicle sales by 2035. Consultancy firm AlixPartners has issued a statement confirming this.
It states that electric vehicle sales will increase by 33 percent worldwide by 2028. AlixPartners also predicts that international EV sales will increase by 54% by 2035. The report said that the main reason for this is the growing demand for electric vehicles in most major markets.
While this increase in demand is expected globally and the fact that EVs are environmentally friendly is a strong factor in their sales, more investment in this sector will inevitably increase sales of EVs, the report said.
Earlier last year, EVs accounted for less than 8 percent of global sales and less than 10 percent for the first quarter of 2022. As demand grows, automakers and suppliers are expected to invest at least $ 526 billion in EVs and batteries by 2022-2026. According to Mark Wakefield, one of the key players in AlixPartners, these high investments have now made EV growth inevitable.
Mark Wakefield says the automotive industry is still facing economic and supply chain challenges as the internal combustion engine (ICE) transitions from vehicles to EVs. At the same time, he said some companies would benefit by splitting their business into ICE and EV.
The cost of raw materials for EVs is 2 times higher than for ICEs. Elmer Gates, the co-chair of automotive practice, says the transition from ICE to EVs will cost automakers and suppliers a total of about $ 70 billion by 2030. In the meantime
AlixPartners, meanwhile, says supply restrictions could continue until 2024. As a result, global auto sales are expected to fall to 79 million units this year. It is worth noting that total auto sales in the United States are projected to grow to 16 million in the current year, to 17.5 million in 2024 but to decline in 2025-2026.