Around 57 percent of passenger vehicle sales will be electric by 2040: BNEF

Bloomerg New Energy Finance in its report Electric Vehicle Outlook reveals that around 57 per cent of all global passenger vehicle sales, and over 30 per cent of the passenger vehicle fleet, will be electric by 2040.

BNEF expects annual passenger EV sales to rise to 10 million in 2025, 28 million in 2030 and 56 million by 2040.

BNEF noted that as the battery prices continue to keep falling as a result there will be price equivalence between electric vehicles (EVs) and internal combustion vehicles (ICE) by the mid-2020s in most segments, although there is wide variation between geographies and vehicle segments.

More than 2 million electric vehicles were sold in 2018, up from just a few thousand in 2010, and there is no sign of slowing down.

Bloomberg NEF outlook said “Shared mobility services will adopt EVs faster than private owners, due to more attractive economics. Today, EVs account for 1.8% of the shared mobility fleet but by 2040, we expect EVs to account for 80% of the shared mobility fleet.”

The report also forecasts the demand for lithium-ion battery for EVs to grow rapidly passing 1,748 gigawatt hour (GWh) annually by 2030. The report noted “Battery cell manufacturing capacity will pass 1 trillion watt hour (TWh) by 2025, based on current announced capacity plans.”

According to the new report India and other emerging economies are expected to go electric much slower, leading to a globally fragmented auto market. Two-wheeler and three-wheeler vehicles are more attractive targets for electrification in the short term inn markets like India and South East Asia.