EV Feasibility survey

February 13th, 2012 - Joe Duarte

Automotive companies will continue to invest heavily in electric propulsion.

EV-plugging-in-view-imageDon’t get charged up over EVs yet

A new survey from KPMG indicates that the internal combustion engine is not going away any time soon, especially in light of improving fuel efficiency and performance from reduced sizes and engine impacts.

The Swiss Audit, Tax and Advisory firm adds in its 13 annual Global Automotive Executive Survey (for which it interviewed 200 C-class global automotive executives, including 25 in North America), though, that automakers are expected to continue to pump investment into electric technology as part of their long-term strategies.

“The need for new electric propulsion technology is still top of mind for auto executives around the world given the demand that will be felt in emerging markets,” said Peter Hatges, Partner, KPMG and Lead of KPMG’s Automotive practice.  “Automotive companies will continue to invest heavily in electric propulsion and will play a leadership role in the development of these emerging technologies going forward. The race is on, but there is no clear winner at this point.”

Among the findings in the survey, is that electromobility is not predicted to exceed 15% of new car registrations by 2025, and executives in North America andWestern Europeactually see it settling in at about 6-10% of global annual sales.

Nearly two thirds of those executives say the optimization of the internal combustion engine offers the most potential for carbon emission reductions over the next five years. However, 54% of respondents see electric component suppliers playing a bigger role by 2025, while 40% of respondents say OEMs will lead in the area, along with pushing traditional powertrain technologies.

“Electromobility is a colossal issue for the industry,” said Hatges.  “The key automotive players should have a clearer vision on this, even though how and when fully electric cars will be a reality is dependent on a variety of complex and interrelated factors.”

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