The last few months have been quite complex for the electric vehicle (EV) industry. Major players like General Motors, Ford, and Mercedes-Benz are slowing down their electrification efforts, citing irregular and unpredictable consumer demand. While charts show a slowdown in electric vehicle sales, things are even worse for internal combustion engine vehicles. So, which alternative will prevail? Hybrid or electric? Here are the details…
Internal combustion engines are nearing the end! Will hybrid or electric vehicles prevail?
Many drivers hesitate to switch to electric vehicles due to a lack of charging stations and insufficient range. Tesla has long been a leader in this field, but this year it is focusing on AI and robotics technologies instead of introducing new and updated models.
Global sales of internal combustion engine vehicles peaked in 2017 and have been steadily declining since. According to BloombergNEF’s (BNEF) latest Electric Vehicle Outlook report, the total fleet of internal combustion engine vehicles on the world’s roads will peak in 2025.
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By 2027, demand for oil for road transportation will also bottom out, and by this year, plug-in (and even hydrogen-powered) vehicles will eliminate the daily consumption of 4 million barrels of oil, roughly equivalent to Japan’s annual oil consumption.
While sales of internal combustion engine vehicles are falling, electric vehicle sales are rapidly increasing. In 2023, about 14 million electric and plug-in hybrid vehicles were sold worldwide, accounting for 18% of total passenger vehicle sales. This represents an increase of 3.5 million units and a 35% growth compared to 2022.
From a broader perspective, annual electric vehicle sales have exploded by 2000% over the past decade. While the US lags in electric vehicle adoption, the market share of internal combustion engine vehicles dropped to its lowest level (84%) in 2023. Meanwhile, sales of hybrid, plug-in hybrid, and fully electric vehicles reached an all-time high of 16%. China, thanks to aggressive industrial policies and intense competition, has achieved a 50% market share for electric vehicles.
Electric vehicle sales are expected to continue rising in the long term. According to BNEF, plug-in vehicle sales will double to 30.2 million by 2027. This number will reach 42 million in 2030 and 73 million in 2040. Government policies and incentives will continue to play a crucial role in the EV transition. Additionally, the decreasing production and purchase costs of EVs may attract more buyers.
In conclusion, electric vehicles are not slowing down; instead, they continue to rise in the long term, replacing internal combustion engines. Do you think the end of internal combustion vehicles is near? Do you prefer electric, hybrid, or hydrogen vehicles? Share your thoughts in the comments below!
