AlixPartners: Electric cars could account for 33% of global car sales in 2028

According to foreign media reports, consulting firm AlixPartners said on June 22 that as demand accelerates in most major markets,electric vehicleswill account for 33% of global car sales by 2028 and by 2035. reached 54%.By comparison, electric vehicles accounted for 8 percent of global vehicle sales last year, and just under 10 percent in the first quarter of this year.

Image source: Land Rover official website

To support this demand, automakers and suppliers expect that from 2022 to 2026 they will invest at least in electric vehicles and batteries, AlixPartners said at its annual Global Automotive Outlook launch. The investment of $526 billion is more than double the company's forecast of $234 billion in global electric vehicle investment from 2020 to 2024.

These higher investments "now make EV growth inevitable," said Mark Wakefield, co-head of AlixPartners' automotive practice.Wakefield added that the auto industry still faces economic and supply chain challenges in the transition from combustion engine vehicles to electric vehicles.The shift, he said, required a "significant change in the operating model, not just in factories and workers, but in the entire way of working".

Wakefield also said some companies would benefit from splitting their combustion engine and electric vehicle businesses.

Elmar Kades, co-head of automotive at AlixPartners, said the shift from combustion-engine vehicles to electric vehicles will cost automakers and suppliers a cumulative $70 billion by 2030, including bankruptcy and restructuring.

AlixPartners expects the tight supply to continue into 2024 and expects total global car sales to fall to 79 million this year before climbing back up to 95 million by 2024.Among them, U.S.auto salesare expected to rise to 16 million in 2023, 17.5 million in 2024, and decline again in 2025-2026.