The birth of a new era?
Earlier this year, we looked at the factors reshaping our automotive industry (Read blog). A key trend was a shift towards hybrid and electric power solutions. This month has seen a series of announcements that reveal just how fast the pace of change is accelerating, leaving the industry on the brink of a fundamental transformation.
Hard on the heels of Tesla’s announcement of the imminent delivery of its mass-market Model 3 electric cars, came the news from Volvo that every car it produces from 2019 will include an element of battery power, be it hybrid or completely electric, followed by the equally unexpected revelation that France is to ban the sale of petrol- and diesel-powered cars by 2040.
Writing for Climate Central, Brian Kahn highlights the extent of the change, citing figures from the Bloomberg New Energy Finance’s new electric car report forecasting explosive growth, with electric cars accounting for 54% of all car sales globally by 2040. *
A huge upshift on earlier expectations, this sets the stage for the eventual phase-down of the internal combustion engine. Equally significant is the predicted reduction in demand for oil, to the tune of 8 million barrels.
We at Kingsbury have long believed that the take-up of electric vehicles was always going to accelerate faster than had been suggested, a view which is supported by this article.
As a company, we have been actively monitoring industry trends and working to help manufacturers respond.
Keep in touch as we seek out and report on new analysis as it becomes available.
* Brian Kahn “The World Is on the Brink of an Electric Car Revolution”