Electric Vehicles To Account For Half Of Global Car Sales By 2035 Amid Net-zero Push

Electric vehicles will make up about half of the new car sales worldwide by 2035 as the push for net-zero carbon emissions accelerates, according to new report.

ISLAMABAD, (UrduPoint / Pakistan Point News - 13th Feb, 2023 ) :Electric vehicles will make up about half of the new car sales worldwide by 2035 as the push for net-zero carbon emissions accelerates, according to new report.

EV sales will soar to about 73 million units in 2040, up from around 2 million in 2020 with the percentage of EVs in worldwide car sales projected to rise to 61 per cent from 2 per cent during the period, the US-based Goldman Sachs Research said in a report.

"We expect the automobile industry to undergo a major transformation between 2020 and 2030, driven by the increasing adoption of vehicle electrification and autonomous driving," Goldman Sachs equity research strategist Kota Yuzawa wrote in the report.

"There will be no let-up in the EV industry's expansion as environmental rules tighten and electrification technologies become more sophisticated." Governments across the world are pivoting towards electrification and clean energy projects to cut emissions as they adopt net zero targets in the coming decades, the National reported .

Goldman Sachs forecasts sales of EVs to grow by 32 per cent annually this decade. The global car industry's operating profits are expected to rise to $418 billion in 2030, up from $315 billion in 2020, while the pool of profits for EVs is forecast to increase to $110 billion from $1 billion.

The report said the market for EV batteries, which account for as much as 40 per cent of the car's cost, is becoming concentrated.

The top five battery makers had more than 80 per cent of the global market share in 2020, while the top five automakers had about 40 per cent of the worldwide market, according to Goldman Sachs.

"Pricing power has shifted to the battery makers, giving them an edge in generating higher earnings," the report said. "In an attempt to rebalance their pricing power with battery makers, finished-vehicle assemblers are rushing to develop vertically integrated production and joint-venture plants."