Global electric vehicle supremacy will arrive by 2033 - five years earlier than previously expected - as tougher regulations on emissions, rising interest among consumers and ongoing infrastructure buildout drive demand.
A new study released by consultant Ernst & Young said that EV sales are set to outpace combustion engines in 12 years in Europe, China and the U.S., the world’s three biggest auto markets.
By 2045, non-EV sales were seen plummeting to less than 1% of the global car market, EY forecast, using an AI-powered prediction tool.
The study comes as carmakers including Ford (F) - Get Report, General Motors (GM) - Get Report, Volkwagen (VW) as well as Fisker (FSR) - Get Report, NIO (NIO) - Get Report and others move to catch up to mass-production electric vehicle pioneer Tesla (TSLA) - Get Report.
The U.S. lags the world’s other leading markets because fuel-economy regulations were eased during President Donald Trump’s administration, according to the study.
Since taking office in January, President Joe Biden has rejoined the Paris Climate Accord and proposed spending $174 billion to accelerate the shift to EVs, including installing a half-million charging stations across the country.
“The regulatory environment from the Biden administration we view as a big contributor, because he has ambitious targets,” Randy Miller, EY’s global advanced manufacturing and mobility leader, told Bloomberg. “That impact in the Americas will have a supercharging effect.”
That will help speed up mass-adaptation of electric vehicles in the U.S., which is already being displayed in consumer demand for the likes of Tesla’s hot-selling Model 3 to new electric models coming from legacy automakers, such as GM’s battery-powered Hummer truck and Silverado pickup, and Ford’s F-150 Lightning pickup.
Japan automaker Honda on Wednesday joined the growing list of car companies going all-electric, stating it will look to completely phase out sales of gasoline-powered cars by 2040.