The future for electric vehicles (EVs) is promising as more manufacturers are quickly embracing EVs after the success of Tesla, and more consumers are going green.
What is the future of EV sales?
According to the survey, the participating executives' estimates ranged from 20% to 90% of the sales by 2030, bringing an average of 52%.
Gary Silberg, the global head of automotive at KPMG, thinks that most executives believe the goal is possible. This is due to freshly committed capital worth billions and a large number of new vehicles being introduced into the market.
Will EV startups survive?
As reported by KPMG's 22nd annual Global Automotive Executive Survey, 60% of the respondents believe that new EV companies will not have a significant effect. Instead, most will end up being bought by larger companies, and only a few will succeed.
On the other hand, 31% believe new EV companies will have an effect, and 8% believe the probability of failing is high. KPMG also mentioned that there are dominant economic presumptions in the survey findings.
73% of the respondents forecast that EVs will attain equal costs as internal combustion engines by the end of the decade.
On the flip side, 77% believe that EVs can be highly embraced without government subsidies; however, 91% still hold such programs.
The prospective profits from EV sales
Further, the survey revealed that 53% of the respondents are confident that the automotive industry will experience increased profits in the next five years. However, 38% were anxious about the forecast of future profits.
The least optimistic executives were from France and India, with 70% from France being somehow unsettled about the possibility of profitable growth. On the other hand, executives from the U.S. were more confident about the future.
Get affordable insurance for your next EV
The transition to electric vehicles (EVs) is happening very fast with president Biden's order making manufacturers invest more in EV production. However, the final decision on when to purchase an EV still lies with the consumer.