2021 looks to be the year hybrid and electric vehicles, or xEVs, break into the mainstream, according to Oxford Economics. Global xEV sales as a share of total new light-vehicle sales will reach 16 percent in 2021, up from 11 percent in 2020 — xEVs’ largest annual gain in market share ever. By 2030, Oxford Economics predicts the share will reach 44 percent.
The acceleration in xEVs is particularly dominant in Europe, fueled by generous incentives and stringent emission regulations. This is reviving prospects for auto manufacturers, such as those in Germany. We project the xEV share of new-car sales in Europe will reach 31 percent in 2021 and 80 percent by 2030.
However, the path to sustainable growth means battery electric vehicles must eventually become profitable without relying on incentives. Mass production and competition will help, but the main challenge will be in producing cheaper batteries, which make up the bulk of electric vehicle costs.
Oxford Ec
