Electric Car Sales Not Taking Off Any Time Soon: Survey

Electric Car Sales Not Taking Off Any Time Soon: Survey
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Why get an electric car when new gas powered vehicles are getting such high marks for fuel efficiency? According to a survey by KPMG, the rising standard of efficient gas engines is going to lead to minimal sales of electric vehicles.

KPMG’s 13th annual Global Automotive Executive Survey found that, although electric engines are a major long term strategy, the optimization of internal combustion engines will be key in the next five years.

Peter Hatges, KPMG’s Lead of automotive practice says, “The need for new electric propulsion technology is still top of mind for auto executives around the world given the demand that will be felt in the emerging markets.” However, the survey points out that electric car sales will not exceed 15% of new car sales world wide, by 2025. Automotive Executives expect even less in the short term at about 6-10% adoption.

Another key factor in the future is the role that manufacturers of electric components will have. There will be a huge competition in this space, and 40% of respondants believe that original equipment manufacturers will lead in that area, in addition to traditional powertrains.

Still, electric cars are at a crossroad. Hatges says “Electromobility is a colossal issue for the industry, the key automotive players should have a clearer vision on this, even though how and when fully electric cars will be a reality is dependent on a variety of complex and interrelated factors.”

Interestingly, the survey makes no significant mention of the role of Hybrid cars moving forward, even though it seems that many new cars will have a gas-electric hybrid option.