The head of Envision Racing predicted on Tuesday that electric cars will reach parity with internal combustion cars by around 2025, a move that will accelerate the industry's transition to cleaner, greener vehicles.
The cost of manufacturing internal combustion vehicles is increasing, according to Sylvain Filippi, managing director of Envision Racing.
Filippi said that in 2025-2026 you'll start to see parity on the supply side, in developed countries and that sticker price parity would mean the total cost of ownership would be lower.
When that happens and we can make these cars at scale, the floodgates will open, Filippi said.
At that stage, buying an internal combustion car is a bad idea because the original value of these cars will be nothing. It will become a bad asset and I think the transition will accelerate very quickly. As demand increases in most major markets, electric vehicle EV sales could reach 33 per cent globally by 2028 and 54 per cent by 2035, according to a study released earlier this year by consultant AlixPartners.
Last year, EVs accounted for less than 8 per cent of global sales, and just under 10 per cent in the first quarter of 2022.
According to the AlixPartners, more than double the five-year EV investment forecast of $234 billion from 2020 -- 2024 is now predicted to be followed by automakers and suppliers with at least $526 billion invested in EVs and batteries from 2022 -- 2026.