Electric Cars Will Rule the Roost

Electric cars will rule the roost.

Electric vehicles (EVs) are present in the auto market since the 19th century but they never manged to threaten the monopoly of traditional Internal combustion engine (ICE) cars. However, according to a report by Morgan Stanley this is set to change. They claim that four out of every five cars sold would be electric by the year 2050. This is a bold statement considering the current scene where EVs contribute a mere 1.5% to the total percentage of cars sold worldwide.

The study reports that the sales of EVs is growing exponentially and with companies investing heavily in this technology, growth is expected to continue. Currently EV makers incur loss on every vehicle sold, but they are focussing more on establishing brand and increasing sales volume. The report claims that by 2023, losses for EVs will peak and decrease from there onwards with increase in sales. At the same time, profitability of ICE cars will decrease due to increasing price and falling sales.

Currently the growth of EVs is mainly spurred by the keen interest of China. China being the second biggest economy and most populous country in the world, its interest in EVs matters to the world. China is investing heavily in the infrastructure for EVs by setting up charging points at public places, in residential apartments and commercial buildings. These steps will encourage people to buy and use EVs. Currently China accounts for almost 40% of the total EVs sold worldwide. Some of the top carmakers like Honda, Toyota, Volvo and others are adopting