Electric vehicle (EV) sales are likely to make up 33 percent of total car sales by 2028 and 54 percent by 2035, consultant AlixPartners revealed in their report. Last year, global EV sales amounted to 8 percent of total car sales, and just under 10 percent in Q1 CY2022.
The report highlights that the rising demand for electric cars binds carmakers and suppliers to invest at least $526 billion in EVs, batteries, and charging infrastructure in the next 4 years.
Co-leader of AlixPartners automotive practice, Mark Wakefield told Reuters that the increase in investment will further flare up the demand for EVs. However, the industry has multiple challenges in the way of expediting EV normalization, he added.
One of the most prudent concerns is production cost. Raw materials for EVs cost more than double the amount needed to produce Internal Combustion Engine (ICE) cars. Reuters highlighted that, as of May 2022, an EV costs $8,255 to make, while an ICE car only costs $3,662.
AlixPartners sees a rising trend in the demand for EVs due to rising costs of fuel across the globe, coming to a conclusion that automakers will have no choice but to invest more resources in EV development to keep up the supply.