Car manufacturer BMW anticipates that EV sales will increase 70% in the next year.
Key Details
- Due to increasing demand, BMW expects that its global deliveries of electric vehicles (EVs) will increase as much at 70% next year.
- This year, deliveries are expected to reach anywhere from 240,000 to 245,000, but next year the company is expecting 400,000 deliveries.
- Despite lower sales this year due to the semiconductor shortage, BMW anticipates making major advances in fully electric vehicles over the coming year.
Why it’s news
The push for EVs is growing stronger as more governments make plans to reduce carbon emissions. In response to new regulations, more car companies are planning to produce electric vehicles.
Last month, California announced plans to ban gas-powered vehicles sales by 2035.
The Golden State’s plan will work by incrementally increasing the amount of new car sales required to be electric. Currently, 15% of new car sales in California must be electric. By 2026, that number will increase to 35% and 68% by 2030.
California isn’t the only government looking to ban gas-powered vehicles. In fact, they’re a little behind the curve. Europe and some parts of China have plans to phase out gas-powered vehicles by 2030.
European car companies Fiat, Chrysler Europe, and Bentley plan to phase out production of gasoline vehicles in line with Europe’s plans to go electric.
California’s decision coincides with President Joe Biden’s Inflation Reduction Act. The bill included tax credits for car owners switching to electric along with other incentives for Americans to go solar.
Access to charging stations for electric vehicles (EVs) has been a concern, but as more companies invest, that concern could lessen.
Many automakers like Ford Motor, Chrysler, and General Motors are upping their production of EVs.
EVs are more expensive than gas vehicles, a big concern for consumers facing inflation. War in Ukraine could raise the prices even higher as access to necessary materials becomes more difficult.
The average EV cost $62,900 in July. All other vehicles averaged $47,200.