As demand accelerates in most major markets globally, electric vehicles sales could reach 33% of total sales by 2028 and 54% by 2035. Consultants have estimated that electric vehicles accounted for less than 8% of global sales last year and fewer than 10% in the first quarter of this year. Moreover, electric vehicle sales are projected to rise to $16 million in year 2023.
To support this demand, automobile manufacturers and suppliers now expects to invest $526 billion dollars on electric vehicles and batteries from 2022 to 2026. The firm announced at its annual global automotive outlook briefing, it is more than double of five year Electric Vehicle investment forecast of $234 billion dollars from 2020 to 2024. The auto industry still faces economic and supply chain challenges during transition from internal combustion engine vehicles (ICE) to Electric Vehicles. However, some companies will benefit from separating their Internal Combustion Engine and Electric Vehicles businesses.
Raw materials for Electric Vehicle also costs more than twice now than those for Internal Combustion Engines. It’s around $8255 per vehicle for Electric vehicles compared to $3600 per vehicle for ICE vehicles as of May this year. The Internal Combustion Engines to Electric Vehicles transition will cost automakers and suppliers a cumulative $70 billion dollars by 2030.