Here’s What it Will Take for EVs to Take Over the Car Market

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China's electric car market is growing twice as fast as the US. Here's why  | South China Morning Post

BloombergNEF (BNEF), estimate that without a new economic or policy proposed by the global governments, electric vehicles and other zero-emission cars will account for 70% of new vehicle sales by 2040, up from 4% in 2020.

To meet the global requirements of having zero emissions by 2050, a goal stated by Canada, the European Union, the United Kingdom and the United States estimates there will need to be a policy to encourage further sales of electric vehicles and other zero-emission vehicles. Some countries already have this policy in place, but more will need to be sold to meet the aggressive emission goal.

Electric vehicles only account for a small percentage of new car sales and an even smaller share of cars on the road.

Recently, a report was made by the research firm at BloombergNEF, which projects that things could look different by 2040. BNEF says 70% of passenger cars could be EVs or other zero-emission vehicles such as fuel-cell vehicles. But, even that growth won’t be enough for the governments that say they’re targeting zero carbon emissions by 2050.

In 2020, BNEF reports 3 million EV sales and predict that sales will rise to 14 million by 2025. This will account for almost 70% of new car sales globally and 90% of new car sales in Europe by 2040. Some governments including Canada, the European Union and the united states have ambitions to produce zero carbon emissions by 2050.

BNEF says governments will need to prompt the market by subsidizing the electric vehicle infrastructure. By setting stricter limits on carbon dioxide emissions and implementing mandates for the electrification of commercial truck fleets. So far being much slower to electrify than the passenger car segment. Electrifying the commercial truck fleet by 2050 may be the most challenging of the BNEF’s report prescribes.

Daimler, Tesla, and Volvo are the companies working on delivering Class 8 heavy-duty trucks. Volvo’s work is so far only good for last-mile deliveries, not the long-haul routes that prop up the American supply chain.