The Strategist

Study: Over half the cars sold worldwide by 2026 will be electric

05/04/2021 - 06:22

Electric cars and hybrids will account for the majority of vehicles sold in the world in five years, Boston Consulting Group forecasts.

In 2026, more than half of global passenger car sales will be in electrified cars, predicts Boston Consulting Group (BCG). Last year the company's experts argued that this figure (51%) would only be reached by 2030, but they revised their forecasts because of the accelerated transition to electric motors in the pandemic. 

"With unprecedented support from governments and leading carmakers during the COVID-19 pandemic, global electric vehicle market share has increased from 8% in 2019 to 12% in 2020 and retains growth potential into early 2021," the study said.

In 2025, zero CO2 vehicles, including fuel cell vehicles, will account for 47% of new passenger cars sold globally, experts predict. They estimate that the fastest growth in plug-in electric vehicles is now noticed in Europe. Last year, sales of plug-in hybrid and battery-powered vehicles increased by 9.3pc in the European Union, up to 2.2pc in the US and up to 5% in China. In Germany, sales of plug-in vehicles rose by almost 3.5 times and battery vehicles more than doubled. At the same time, sales of petrol cars fell by 36% and diesel cars by 29%.

However, replacing the entire global fleet of vehicles in use will take quite some time. By 2035, 70% of vehicles will still run on petrol or diesel, BCG forecasts.