Automakers’ Ambitious Targets for Electrification

The automotive industry is undergoing a significant transformation, driven by the need to reduce carbon emissions and combat climate change. As a result, major automotive groups are setting ambitious targets to electrify vehicle production and sales, and to decarbonize their operations.
Targets for electric vehicle deployment often exceed regulatory requirements and government ambitions. However, these targets are non-binding and often focus only on leading EV markets. The most ambitious targets are for the European market, where newly amended CO2 emission standards would mean that all new cars and vans will be zero-emission by 2035.

Several Chinese OEMs have recently announced EV targets that tend to be shorter-term and within reach of current NEV market shares. In contrast, OEMs based in the rest of the world tend to have longer-term targets.

Automakers are also investing increasing sums in electrification and digital technologies. Just seven automakers have capital expenditures of more than USD 55 billion on emerging automotive technologies since 2019, including for manufacturing facilities.

In addition to goals to electrify vehicle production and sales, major automotive groups have set corporate decarbonisation targets. Eight major automotive groups have joined the Science-Based Targets initiative and set targets to reduce GHG emissions from their LDVs by 50%-80% relative to recent benchmarks, as well as certain Scope 3 emissions by 30%-50%, all in the 2030-2035 timeframe.

Automakers are also announcing their own corporate net zero pathways. Many major players have set targets for carbon neutrality from 2038 through 2050, accounting for around 60% of global light-duty vehicle (LDV) sales in 2022.

Source: Global EV Outlook 2023 | IEA
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