The rush towards EVs comes as environmental and climate regulations begin to tighten around the world, while technological improvements have made EVs cheaper than ever.
Among global automakers, Volkswagen has the most ambitious vision. VW, the world’s largest automaker by sales, announced plans in December to spend $34 billion on e-mobility initiatives and $57 billion on battery procurement. The combined $91 billion in planned spending on EVs over the next decade is unmatched by any other global car company. VW will unveil 50 battery electric models by 2025, along with 30 hybrid election models. And over time, the Germany automaker will offer electric versions of all of its 300 models.
The EV push comes at a tricky time for the global auto industry, which has recently run into trouble. Overall auto sales screeched to a halt in China last year, a major sign of an economic slowdown. As the world’s largest car market, the 6 percent contraction in sales in China in 2018 has inflicted economic pain on automakers around the globe. According to RBC Capital Markets, the global auto industry saw sales dip by 2.9 percent in the third quarter of 2018, followed by a 4 percent decrease in the fourth quarter. That marked the first time global auto sales fell in two consecutive quarters since 2009 during the depths of the financial crisis. Goldman Sachs predicts that car sales in China will decline by another 7 percent this year as the economy slows and the effects of the trade war linger.
Read original at Global Automakers to Spend $300 Billion on EVs in 10 Years
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