"45% of Global Cars to Be Electric by 2040"

Source: Bloomberg

[Asia Economy Reporter Yujin Cho] It is forecasted that by 2040, electric vehicles will account for 45% of all cars worldwide.

On the 12th, according to the South China Morning Post (SCMP), the credit rating agency Fitch stated in a recent report, "The growth of the electric vehicle market has exceeded market expectations," adding, "The speed of phasing out existing internal combustion engine vehicles will play a crucial role in expanding the market share of electric vehicles."

Fitch expects the phase-out rate of existing internal combustion engine vehicles to be 7% annually. Last year, electric vehicle sales reached 3.1 million units, about 4% of the global automobile market, marking a 30% increase compared to the previous year.

Fitch particularly anticipates that China, which has pledged to achieve carbon neutrality by 2060, will play a leading role in the growth of the global electric vehicle market. In China alone last year, 1.17 million electric vehicles were delivered, representing a 12% growth rate compared to the previous year.

American electric vehicle company Tesla delivered 35,478 vehicles produced at its Shanghai Gigafactory 3 to the Chinese market last month, with deliveries increasing by 93.7% compared to the previous month.

Meanwhile, last month UBS predicted that by 2040, all new cars worldwide will be electric vehicles. UBS expects that with the falling price of electric vehicle batteries, the profit margin ratio between existing internal combustion engine vehicles and electric vehicles will equalize by 2025.

This content was produced with the assistance of AI translation services.