Two-thirds of cars could be electric by 2030Published: Thursday, October 13, 2016
Falling costs and rising environmental regulation could mean that a majority of cars will be electric in 2030. A report from McKinsey & Co. and Bloomberg New Energy Finance concludes that in the next 14 years, more than half of all cars could be powered by electricity. This can be largely attributed to lower costs. Governments trying to meet environmental targets are introducing subsidies and tax breaks that help boost margins. Moreover, technology costs are also plunging — the price of lithium-ion battery packs, for instance, fell by nearly two-thirds in 2015. "In densely populated, high-income cities like London and Singapore ... electric vehicles could represent as much as 60 percent of all vehicles on the road by 2030, the result of low-emission zones, consumer interest and favorable economics," the report states. The growth of electric vehicles could create broader challenges for the automotive sector, according to the report. It emphasizes the automotive sector's need to adapt to new market conditions, stating that the industry might need to "consider moving from using a pure product-ownership model toward providing a range of transportation services" (Nina Chestney, Reuters <http://www.reuters.com/article/us-electric-vehicles-idUSKCN12B2AR>, Oct. 11). *— KB* _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
