300 Million electric vehicles in the world in 2040

A study called Electric Vehicle Theme Study by GlobalData points out that the electric vehicles in the world will increased to 300 million by 2040 though it is only 3 million in the world now. Cyrus Mewawalla, who led the study, said the traditional automotive industry would face pressure, evaporation of profit margins and significant changes in the next five years. And the first-class auto parts suppliers would also face the costs of switching to electric vehicles and automotive technology.

In addition, GlobalData predicts that by 2030, electric vehicle registration will account for more than 15% of the global passenger vehicle market, up from 1% in 2017. However, the data company predicts that it will be difficult for big car makers to achieve large-scale production of electric vehicles before 2025. It provides enough room for new car makers to make progress to gain market. In turn, the traditional auto industry will enter into a period of higher capital expenditure.

In addition, GlobalData predicts that many automakers will not survive in the technologically changing world, but will become a minor footnote in history. Cyrus Mewawalla says we are in the early stages of the cycle described above, but the value chain will be transformed by electric vehicles in the next decade.