ING: A new report released today shows that new cars sold in Europe will be electric from 2035 – which will have serious implications for the European car manufacturing industry.
Senior economists at ING have published a report titled “Breakthroughof electric vehicle threatens European carand predict that the barriers that currently stop consumers from investing in electricity will disappear in a short time.
Falling battery, combined with better range between charges and faster overall charging times, will contribute to buyer confidence, as buying a battery-powered car will be just as attractive as a car with an internal combustion engine.
This may sound good to electric car fans, but the report says that European car manufacturers have a market share of only 3% in the production of lithium-ion batteries.
So European factories that will try to meet the demand for electric cars will depend on countries like China and Japan to buy batteries and other materials.
Electric cars have fewer components and their manufacturing is more automated, which means there will be fewer jobs.
Overall, the ING report paints a very bleak picture, although it does show that there is hope if Europe shifts from the traditional business model to one that emphasizes services over sales.
