MarketingPRONewsElectrification In The Automotive Sector Latest Facts And Trends




Electrification In The Automotive Sector: Latest Facts and Trends

Following the recent update in the passenger cars industry, as the EU regulation about the stop of diesel and petrol engines from the 2035, more and more automakers are focusing the EV opportunities to keep competitiveness for the forthcoming years. The automakers are gearing up to produce new electric and also hydrogen fuel cell vehicles, and they’re also shifting gears and moving into the fast lane to give consumers what they will want most.

For example, currently the Toyota Corp. 21% of its sales are electric or hybrid cars (the goal is 40% by 2025), while Ford is also electrifying its cars, including the Mustang, the F-150 truck, and the Transit (E-Transit). By 2026, it will produce more than 2 million EVs. Furthermore, Volkswagen said it delivered more EVs worldwide than ever: 369,000 electric cars, a 73% increase from 2020, and by 2030, at least 70% of all Volkswagen’s European sales will be all-electric vehicles.

The European Union is phasing out the internal combustion engine by 2040, while the Biden Administration wants half of all U.S.-sold vehicles to run on electricity by 2030. In U.S., the Inflation Reduction Act provides a $7,500 tax credit for EVs beginning this year and will last a decade. This benefit had previously gone away if the car manufacturer sold more than 200,000 vehicles. But the credit has some limitations and only applies to less-expensive models. Not only that, to date electric vehicles comprise 2% of the global car market. The U.S. Energy Information Administration says hybrids that run on electricity and gas will make up 34% of cars in developed countries and 28% in emerging economies by 2050. The Edison Electric Institute projects 26.4 million electric vehicles in 2030. By this date, EVs will represent half of the global volume: two-thirds of European commercial vehicle sales will be all-electric or plug-in hybrid, while all European commercial vehicles will be zero emission by 2035.

But what about hydrogen fuel-cell cars? Automotive players like Honda, Hyundai, and Toyota are making fuel cell-powered cars, in particular Honda is working with General Motors to develop its fuel cell system, planning to sell 60,000 of those cars by 2030. Hydrogen has various advantages: it is abundant, renewable, and non-polluting. Water vapor is the only byproduct of a fuel cell car that runs on hydrogen. And they can run much further than EVs before refuelling is required — a process that takes just 10 minutes. However, it is about 30% more expensive to move hydrogen via pipelines than it is to carry natural gas. Change takes time. But it will come to the automotive market, hitting full-swing by mid-century. Automakers are revving their engines, ensuring they get ahead of market and regulatory trends.

For more details and reports on how Global players are focusing on electrification, MarketingPRO is specialized in the provision of qualitative surveys and comparative analysis, in order to track and pinpoint differences in the product range, pricing, and characteristics of the makes’ offering. Get in touch with us today, writing to [email protected] or through our website contact form.