Auto Industry Doubts EV Will Succeed

Each year, financial consulting firm, KPMG, conducts an executive attitude survey of the world’s auto industry executives. The finding of this year’s survey is rather interesting: captains of major automotive companies see only modest potential for electric vehicles sales over the next 13 years.

However, the majority also believes the industry will continue to invest large amounts of resources into Electric Vehicle technology.

According to the findings, two-thirds of the executives surveyed believe that alternative fuel vehicle sales, that combine hybrid and electric vehicles, will account for as little as 6% of the market in the United States and Western Europe as late as 2025.

“They are hedging their bets,” interprets Gary Silberg, national auto industry leader for KPMG. “The dilemma for the industry is, how do you predict the future when there is a high probability you will be wrong?” Silberg says. “It’s a gamble.”

It seems that the auto industry doesn’t know yet what the winning alternative fuel vehicle technology will be for the future, and hence they are covering all basis and invest in all of it and let the market decide.

According to the survey of 200 automotive executives, who participated anonymously:

• 81 percent anticipate larger investments in battery packs and battery cell technology;

• 85 percent believe automakers will invest in more electric motor production; and

• 76 percent expect more investment in electronics for electric vehicles.

Previous year data was not available for comparison as this was the first time the executives were surveyed on the question.

Source: Automotive News