U.S. EV adoption outlook fell by 30% in 2022
Yahoo Finance autos reporter Pras Subramanian details a recent KPMG survey, which found that auto execs are less bullish on EV adoption compared to 2022.
Video transcript
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- Auto executives around the globe are pumping the brakes when it comes to expectations for EV adoption. In a recent survey conducted by consulting and accounting firm KPMG, the median expectation for EV sales in the US by 2030 fell from 65% last year to 35% in this year's poll. That would fall well short of President Biden's goal of half of all new vehicle sales in 2030 to be fully electric.
Pras Subramanian here with more on this. Wow. What has caused that number, in your estimation, to fall so dramatically?
PRAS SUBRAMANIAN: You know, it's, a big part of it, I think, is their concern about pricing in terms of component prices, and also things like EV adoption rates. They think that they're not going to be as strong as they believe. Higher rates, too, right, are affecting the adoption of--
- Gas prices coming down--
PRAS SUBRAMANIAN: Yeah, exactly.
- --I would think would factor in there as well.
PRAS SUBRAMANIAN: Yeah. So you have these EVs that are already kind of expensive, hard to get the critical materials you need for the batteries and things like that. And in places like India, Brazil, and even Japan, they're not seeing the EV adoption kind of happen as soon as they think it would be because of various reasons.
Japan is interesting, because the CEO of Toyota is kind of pumping the brakes also on talking about, there's a silent majority out there of auto execs who don't think this is going to happen because of maybe the governments are too aggressive with their kind of deadlines for getting this, making this happen. So that's why there's some sort of ambivalence toward that transformation right now with these auto execs.
SEANA SMITH: Yeah, there certainly is a lot of uncertainty. And then also what I found interesting in this survey, Pras, was the companies that the auto executives think are going to lead the EV market, the battery EV market in 2030, Tesla a year ago was by far the leader in this space. And certainly, a number of the competitors-- we have it up on the screen-- really closing the gap. And it looks like Tesla's grip here could in fact be slipping a bit.
PRAS SUBRAMANIAN: Yeah, for sure. I mean, 233 execs thought-- sorry, 419 thought Tesla would be number one. And then now it's down to 223 by that 2020, by 2030.
One other thing that's not on there is Apple actually was number four on that list. And then they went up from number nine in 2021. So interesting to see Apple kind of coming in out of the blue, [INAUDIBLE] have a car yet.
- They don't have a car?
PRAS SUBRAMANIAN: Yeah. So you know, what's that going to be like, borrow a platform from somebody, put their software in there. But the Apple Car is very concerning to a lot of these execs.
