Consumer Interest in EVs Continues To Climb

Hybrid Electric Vehicles

According to EY the electrification, circular economy, and AI will fuel $660 billion in new revenue pools. The also forecast that electric vehicles will make up 50% of new vehicles sales globally by 2041 and the shift towards clean powertrains will redefine OEM supply chain and R&D priorities for engine transformation and the key engine innovation areas will include remanufacturing , AI-driven diagnostics and smart engine software.

• The chart presents an illustration of customer interest in alternative to combustion fuel engines across various countries as United states shows the highest interest in Gas/Diesel engines at 59%, followed by hybrid electric vehicles an all battery powered electric and others. Whereas in Japan we can see that the customer preferences of engines are of hybrid electric with 47% and the Gas/Diesel with 37%.
• The electrification in the automotive engine industry has gained a momentum and the PwC suggests that the battery electrical vehicle (BEVs)  will account for approximately 40% of global vehicle sales by 2030 which leads to increase upto 70% by 2040, surpassing the traditional internal combustion engine (ICEs) revenue . And they also suggests that the companies across sectors should participate in BEV gold rush, taking advantage of the transformation opportunities.
• Mild hybrids which are (MHEVs) is used in utilizing a 48V system to enhance fuel efficiency and reduce emissions without full electrification. And the future of MHEVs as a share of remaining ICE vehicles is to be 60 to 80 percent in Europe , 50 to 70 percent in China , and 10 to 20 percent in United states by 2025 and by 2030 the share must increase to nearly 100 percent in Europe , 70 to 90 percent in China , and 60 to 80 percent in United states .
• Mary Barra - CEO of General Motors (GM) says that the profit margins for traditional ICE which is internal combustion engines have not peaked and  the GM anticipates 2025 profits to align with those of 2024. She reassured investors of GM’s commitment to transition to electric vehicles (EVs) . She said “ Our plan is to only be selling EVs , light-duty EVs at that time but of course we’re going to be responsive to where the customer is at but we have a plan to do that.”