Electric vehicle makers have been having a good quarter, as seen in this latest earnings season. And the circumstances are not expected to change soon. As the most important markets for automakers release new regulations and new goals related to the industry, it is most probable that the outlook for EV companies or traditional automakers making important efforts to shift to EVs will remain bullish for time to come.
The European Commission made an announcement on Wednesday making their goals for a total shift towards electric mobility more ambitious. By 2030, Brussels expects to reduce the emissions of their lineups by 55% and to have their lineups turned entirely into zero-emission vehicles by 2035, just five years later.
This move, which still requires approval by lawmakers in the EU, will turn internal combustion engines, including hybrid systems, into a species at risk of extinction soon. As part of the regulation, all countries in the EU are expected to become more EV friendly by augmenting the amount of charging stations and other facilities in their roads and cities.
As the auto industry plays a significant role in the European Economy, accounting for more than 14 million jobs and 7% of its GDP, it is expected that major industry players will steadfast their process to become EV manufacturers soon. Big automakers such as Daimler, the Volkswagen Group, and Ford (Which is not headquartered in Europe but holds a healthy market share) are already outlining their plans to become emissions-free in their primary markets in the future.
These major companies’ plans are also aimed towards the US and China, two markets that have already made plans for the transition but do not maintain an ambitious regulation plan. This could mean that a move by Brussels could spark a change for the entire developed world and even other markets.
For example, Volkswagen expects to make more than 50% of their lineup electric by 2030 and to be 100% electric in their primary markets by 2040. Meanwhile, Ford expects to be entirely electric, at least in the EU, by 2030. Other car makers like Renault or Mercedes Benz have similar plans for the EU and other markets.
These regulations could still take years to be approved by the EU legislature and council finally. However, this is the beginning of a roadmap that may democratize the purchase and use of EVs in the future. As said by EU officials, the aim is to create new cleaner jobs and present a cleaner world to the next generations.
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