Pivoting to an Electrified Future – The Automotive Industry Amps Up

The Automotive Industry Amps Up

As we emerge from the COVID-19 crisis, the automotive
industry is pivoting sharply to an electrified future. IHS Markit
analyzes the drivers of this change and the new trajectory that the
industry is following. The year 2027 emerges as a tipping point for
an acceleration in EV adoption, and by 2030 over one in four new
passenger cars sold will be an EV.

The world has undergone two significant dislocations in recent
years. As of February 2021, 194 states and the European Union have
signed the Paris Climate agreement (COP-21), which effectively sets
the legislative framework for the decarbonization of the global
economy. Policies targeting emissions from transportation, which
amount to about one-third of overall greenhouse gas (GHG) emissions
in the EU or the US, are becoming a central plank in governmental
policy. In addition, as governments grapple with huge adjustments
in their fiscal balances after the COVID-19 pandemic, an even
greater relative focus has been placed on supporting low-carbon
growth strategies. The COVID-19 crisis has arguably accelerated the
promotion of electrified vehicles as part of an overall
green-friendly solution. Rather than resisting this trend, OEMs are
now actively embracing it, with many planning to go completely
electric. Therefore, IHS Markit analysts have significantly
increased the forecasts for global electrification. The year 2027
emerges as a tipping point after which rates of electric vehicle
(EV) sales will rise sharply. By 2030, one in four new passenger
car sales will be fully electric-with rates much higher by 2040.
This article seeks to outline the key drivers of this new
accelerated trend and their impact on the industry’s propulsion
choices. This high-level assessment of the forecast will be
incorporated into each of the IHS Markit forecast product sets in
the upcoming months.

Download the full whitepaper to read more:

• Legislative forces become irresistible
• COVID-19, the unlikely electrification accelerator
• The economic stars of EV adoption are aligning-2027 is a key
  tipping point
• OEMs adopt the EV narrative en-masse
• Outlook for EV adoption is revised up significantly

Download whitepaper

Posted 22 April 2021 by Colin Couchman, Executive Director – Global Light Vehicle Sales Forecast and

Henner Lehne, Vice President – Global Vehicle Forecasting, Automotive, IHS Markit and

Nigel Griffiths, Chief Automotive Economist and

Reinhard Schorsch, Director, Automotive Advisory & Planning Services, IHS Markit and

Tim Armstrong, Senior Vice President, Planning Solutions, Automotive, IHS Markit and

Tom De Vleesschauwer, Global Transport & Mobility Practice Leader, Automotive

Source: http://ihsmarkit.com/research-analysis/pivoting-to-an-electrified-future-the-auto-industry-amps-up.html