Two-thirds of cars could be electric by 2030Published: Thursday, October
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
11). *— KB*
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