Despite the rapid development of the electric vehicle market in the past few years, issues such as high tram prices, charging difficulties, and range anxiety have been limiting people's transition from gasoline vehicles to electric vehicles.
RBC Capital Markets predicts that as electric vehicle prices stabilize and charging infrastructure continues to expand, the electric vehicle market is about to experience significant growth.
A new report from the bank found that although pure electric vehicles (BEVs) only account for 12% of global demand this year, with improvements in pricing, charging infrastructure, and driving range, as well as government policies restricting the use of gasoline powered vehicles, it is expected that the demand for electric vehicles will increase in the coming decades.
"The combination of these factors means that the demand for pure electric vehicles will eventually become consumer driven," the report said.
The report also predicts that by 2050, pure electric vehicles will occupy 75% of the global market share, while in some developed country markets, the share of pure electric vehicles will exceed 90%.
According to relevant statistical data, in 2022, the proportion of global electric vehicle sales to all new car sales reached 10% for the first time, higher than the 8.3% in 2021.
Goldman Sachs had previously predicted that electric vehicles would account for half of global new car sales by 2035 and increase to 61% by 2040.
Facing "tortuous fluctuations" in the short term
However, the development of the electric vehicle market may face some "twists and turns" in the short term.
RBC's Chief Global Automotive Equity Analyst Tom Narayan stated in a media interview on Monday that with the increasing demand for SUVs and pickup trucks, the sales forecast for electric vehicles in the coming years is expected to slightly decline, as SUVs and pickup trucks are relatively few in the electric vehicle market at present.
But he pointed out that there will be many electric vehicles in the future, especially SUVs and pickup trucks. "In fact, we ultimately raised our forecast after 2025, and we are still quite optimistic, although there may be some fluctuations in the coming years."
RBC predicts that hybrid vehicles will become increasingly popular in the short term, but this growth is only temporary, and ultimately electric vehicles will become popular in the market.
"Due to the slowdown in the growth of electric vehicles, people are now very interested in plug-in hybrid vehicles," Narayan said. But he said that ultimately, plug-in hybrid vehicles are just a transitional step and not the ultimate solution, as people still want a pure electric vehicle.