The future of the automotive market: the data speaks for itself
Tesla’s dominance of the automotive market, despite all those who said it would lose its position when the traditional brands started to manufacture electric vehicles, leaves no doubt that the ongoing technological transition will soon see internal combustion vehicles as relics of a bygone age.
In China, the world’s largest market, EVs already make up 30% of sales, and the price of internal combustion vehicles there is plummeting. Chinese car companies are rapidly shifting to the production of EVs, led by companies such as BYD in response to new emissions rules that come into force in July. As a result, many of the vehicles that dealers have in their already high post-Covid inventory will soon be worthless, and despite increasingly aggressive rebates people are not buying.
Globally, the factors influencing the transition to EVs are obvious: emissions standards, which are due to come into force for new vehicle sales and that will eventually be applied to vehicles in circulation through road testing. At the same time, carmakers are now focusing on producing cheaper EVs: Tesla is readying to attack the only segment it has not yet conquered, Volkswagen has high hopes for the ID.2, and several Chinese brands are set to enter North America and Europe. As lithium becomes cheaper and more abundant, and engines and…
