Shift to Electric Vehicles Gaining Momentum

Among the 23 major manufacturers assessed, Tesla stands out as the only manufacturer already producing only battery electric vehicles. Volvo has set the most ambitious target of achieving 100% zero-emission vehicle (ZEV) market share for LDVs by 2030. The Chinese manufacturers BYD, Great Wall, Geely, SAIC, and Changan include plug-in hybrid electric vehicles towards their targets. Tata Motors recently announced an ambitious target of 50% ZEVs by 2030, covering mainly sales in India. Japanese and Korean manufacturers have been more cautious in making announcements, with most of them setting more ambitious targets in Europe than elsewhere.

Two prominent European manufacturer groups, Volkswagen (VW) and Stellantis, are more ambitious in their commitments in Europe than elsewhere and focus on passenger cars rather than the broader LDV segment. BMW has set a more ambitious target for its Mini of 100% ZEVs by 2035 compared to the overall BMW Group’s global commitment of 50% ZEVs by 2030. General Motors (GM) and Ford, the two US manufacturers, are signatories to the COP26 Declaration and will work towards a full ZEV transition in leading vehicle markets by 2035.

While these commitments are not legally binding, they signal a shift in the automotive industry towards electrification and reducing carbon emissions. The ambition of these targets can be assessed by several factors, including time frame, geographical coverage, and technology type. As more and more manufacturers commit to electrification, it will be interesting to see how the market for EVs evolves and how consumers respond to the changing landscape.