Sales of electric vehicles are anticipated to boost in the next two to three years, as prices plunge and more options happen to available, according to BlackRock’s global chief of sector investments and thematic.
Customers have more opportunities to change from conventional combustion engines to electric vehicles and their options will not be restricted to some car suppliers, Evy Hambro, Chief investment officer, MD, and fund manager at BlackRock said.
“I think we’re going to transform noticeably,” Hambro said. “Over the next two years, we will witness this huge expansion of the model range; we will also see the fall in entry price, and anticipate a sturdy spur in sales of electric vehicles in contrast to the next two or three years.”
Earlier this year, the International Energy Agency (IEA) forecast that the number of electric vehicles would increase to about 125 Million by 2030, thanks to policies that push the purchase of clean cars. That would mean a breakthrough compared to 2017 when the agency expected that 3.1 million electric vehicles were used.
In fact, most traditional manufacturers are investing to develop their own electric vehicles. Volkswagen freshly declared that it would spend about $50 Billion on new facilities, electric cars, autonomous driving, and other mobility services, with the aim of becoming the most lucrative manufacturer of electric cars.
According to Hambro, different nations are in different stages of adopting electric vehicles, relying on the regulations and preferences of consumers. China, for its part, dominates in many new business models around automation and electric vehicles, also in battery technology, he added.
BMW also announced on Wednesday that it was licensed to provide mobile services in the Chinese city of Chengdu, making the German automaker the first overseas company to do so in China. It will face fierce competition from local players including Meituan Dache and Didi Chuxing.