Toronto, Ontario – Electric car sales will stall for more than a decade, while continuing improvements in fuel efficiency and performance standards will keep internal combustion engines at the forefront, according to a new survey by KPMG.
Even so, automakers are expected to pump investment into electric technology as part of their long-term strategy, the report said.
“The need for new electric propulsion technology is still top of mind for auto executives around the world, given the demand that will be felt in the emerging markets,” said Peter Hatges, lead of KPMG’s automotive practice. “Automotive companies will continue to invest heavily in electric propulsion and will play a leadership role in the development of these emerging technologies going forward. The race is on, but there is no clear winner at this point.”
The survey found that electromobility is not predicted to exceed 15 per cent of new car registrations globally by 2025; that auto executives in North America and Western Europe expect even less, projecting that electric vehicles will only account for 6 to 10 per cent of global annual sales; and nearly two-thirds say that optimizing the internal combustion engine offers greater efficiency and the most potential for carbon emission reduction than the current technologies over the next five years.
While the industry continues to weigh the benefits and challenges of various electrified fuel technologies, there will be intense competition among suppliers of battery management, chemistry, power electronics, electric motors, battery cells and packs.
“Electromobility is a colossal issue for the industry,” Hatges said. “The key automotive players should have a clearer vision on this, even though how and when fully electric cars will be a reality is dependent on a variety of complex and interrelated factors.”