We expect the automobile industry to undergo a major transformation between 2020 and 2030, according to Goldman Sachs equity research strategist Kota Yuzawa.
NREW YORK, Feb 11 (The CONNECT) - EVs will make up about half of new car sales worldwide by 2035 as the adoption of electric vehicles is rising sharply amid the global push for net-zero carbon emissions, according to Goldman Sachs Research.
While the EV sector is beset by some major crosscurrents — rising prices for electrical power, inflation for the materials that make up battery components and government policies like the Inflation Reduction Act in the U.S. and Europe’s response to the IRA — our strategists expect technology innovation to supersede these forces in the coming years.
EV sales will soar to about 73 million units in 2040, up from around 2 million in 2020, according to forecasts by Goldman Sachs Research. The percentage of EVs in worldwide car sales, meanwhile, is expected to rise to 61% from 2% during that span. The share of EV sales is anticipated to be well over 80% in many developed countries.
“We expect the automobile industry to undergo a major transformation between 2020 and 2030, driven by the increasing adoption of vehicle electrification and autonomous driving,” Goldman Sachs equity research strategist Kota Yuzawa wrote in the team’s report. There will be no let-up in the EV industry’s expansion as environmental rules tighten and electrification technologies become more sophisticated. But the sector’s sources of profits will change dramatically.
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