Climate Finance

Seven of every 10 new cars could be hybrid or electric by 2030

When it comes to the future of transportation, follow the car-parts maker.

Photo credit: Coda

Follow the money, right? When it comes to the future of transportation, follow the car-parts maker.

A year ago, Schaeffler, a German auto-parts maker, still expected a majority of new cars would be made with internal combustion engines in 2030. Now, CEO Klaus Rosenfeld expects 70 percent of new cars to be (at least partially) electric.

What changed? Recent announcements that Daimler, VW and BMW are accelerating investments in electric cars. Schaeffler plans to hire 1200 engineers to develop parts for electric cars.

The electric cars are arriving sooner that expected meme is taking hold. A report from Carbon Tracker projects electric vehicles could capture one-third of the transport market by 2035 (oil giant BP’s forecast for that year: six percent).

A separate report from the Boston Consulting Group says that by 2030, a quarter of miles driven in the US could be in electric cars (that are shared and self-driving, to boot). “The technology exists and our research shows that many consumers will embrace it,” said Brian Collie, who leads BCG’s automotive practice in North America. “Such an evolution in mobility is no longer a fantasy.”