By 2031, electric vehicles are predicted to account for 33% of all new car sales

According to GlobalData, a major data and analytics business, electric cars (EVs) will account for over 33% of new automobile sales worldwide by 2031. Due to favorable legislation and auto manufacturer pledges, EV sales have achieved new highs in recent years, with yearly sales expected to climb tenfold within the next 15 years, particularly in China and Europe.

Nearly half of the countries have set plans to phase out diesel and gasoline passenger vehicles entirely by 2030. In addition, China wants 25% of all automobile sales to be electric by the year 2025, India wants 30% of passenger vehicles to be electric by 2030, and the United States wants 50% of all automobile sales to be electric by 2030.


Electric mobility is one of the numerous ways oil and gas firms are expanding their business to fit the energy shift that is already underway, according to GlobalData’s latest study, ‘Oil and Gas Sector Strategies for Electric Vehicles (EV)’. Through acquisitions and collaborations, companies like TotalEnergies, Shell, and Mitsui are expanding EV charging, battery production, as well as other EV value chain capabilities.

“Taking a different approach, ExxonMobil has so far overlooked charging infrastructure in favor of delivering solutions to enhance EV performance, like EV battery heat management,” says Miles Weinstein, the GlobalData Energy Transition Analyst. Fluids, lubricants, as well as cooling solutions tailored to EV motors, are also being developed by the company. This is a less risky entry into the EV industry than creating physical infrastructure, and it also fits well with the firm’s existing petroleum-based fluids production. Woodside, on the other hand, has chosen to forego battery electric vehicles entirely in favor of FCEV (fuel cell electric vehicle) infrastructure and the manufacture of low-carbon hydrogen, which reflects Australia’s total lack of battery EV adoption so far. Despite their variances from the strategies of other oil and gas corporations, they all serve the same goal of broadening oil and gas enterprises into new markets in anticipation of a drop in petroleum product sales in the transportation sector.”

Economic conditions will improve

Due to greater capital and fuel expenses, FCEVs have yet to gain significant traction in the passenger vehicle market. While the economics are projected to improve, particularly in light of rising gas costs, GlobalData predicts that FCEVs will become more viable in the medium- to heavy-duty category due to their extended range and quick refueling time, while establishing a limited niche in the passenger sector.

Light electric vehicle (LEV) sales are already surpassing those of the PHEVs (plug-in hybrid electric vehicles), with the margin expected to increase in the coming years. When compared to 2020, EVs’ market share nearly doubled in 2021. Europe and China are likely to have the highest EV sales, with North America accounting for roughly 60% of all EV sales.

South Korea will also see significant sales, while the rest of the planet will see far fewer. Europe is likely to sell the most FCEVs, with China coming in second. Japan and South Korea will be key markets as well, with the North American market being a small fraction of the total.

Sales targets for electric vehicles

Several automakers have established EV sales goals and budgeted for electrification. Daimler and Volvo’s targets of 50% fully electric sales by the year 2025, and Renault Group’s ambition of 100% EV sales in Europe by 2030, are among the most ambitious. Until 2024, the Volkswagen Group intends to invest $37 billion (€35 billion) in all-electric transport.

“Nearly all of the national goals set thus far omit medium- and heavy-duty vehicles, implying that these segments could primarily continue to use conventional fuels through the 2030s,” Weinstein explains. After 2020, demand for petroleum products increased, although it is not predicted to return to 2019 rates until 2026, owing to the rise in demand for electric vehicles. Issues like urban air quality as well as the diesel emissions crisis are contributing causes to the EV push.”

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