At Least Two-Thirds of Global Car Sales Will Be Electric by 2040

By Bloomberg
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Date Published: August 18, 2021

(Bloomberg Markets) —

Electric vehicle adoption is accelerating thanks to improvements in battery density and cost, more charging points, and government policies that make driving dirty cars more difficult. Still, if any country is going to meet its net-zero emissions targets in the next 30 years, more needs to be done to clean up road transportation. Here’s BloombergNEF’s view on where the EV industry is headed now.

Picking Up Speed

Passenger EV sales are projected to increase sharply, rising from 3 million in 2020 to 66 million in 2040, according to BloombergNEF’s Economic Transition Scenario. Globally, EVs will represent more than two-thirds of passenger vehicle sales in 2040. Europe and China are leading the transition.

Stepping Off the Gas

Sales of internal combustion engine (ICE) vehicles have already peaked.

The Price Nears Right

In Europe, battery EVs are approaching price parity with ICE vehicles.

Cheaper Charge

Battery prices fell with manufacturing and tech upgrades and higher demand.

It’s Not Just Cars

Buses and two- and three-wheelers will maintain the top EV adoption rates.

The Race to Build More Batteries

As a world leader in manufacturing lithium-ion batteries, China is benefiting from the rising demand for EV battery packs. The European Union is trying to catch up, setting an ambitious goal of supplying enough batteries to meet its own demand by 2025.

Spoiled for Choice

There are more than 500 EV models on the market worldwide.

Going Farther

On average, electric vehicles introduced in 2020 could travel 359 kilometers (223 miles) before needing a charge, up from 166km in 2012.

Power Points

In China and Europe, charging spots more than doubled in two years.

Less Oil in, Less Pollution Out

Alternative drivetrains, fuel economy, and shared mobility will impact oil demand; however, nations still won’t reach net-zero by 2050 without doing more.