Analysis suggests electric operations will become rapidly more profitable than petrol and diesel arms within five years
The world’s largest traditional carmakers could improve their profit margins and boost their value to investors by accelerating the transition to electric cars in the next decade, a new analysis has found.
The electric carmaking operations of Toyota, Volkswagen, Stellantis, Volvo, BMW and Mercedes-Benz will rapidly become more profitable than their traditional petrol and diesel counterparts within the next three to five years as carbon emissions regulations tighten, according to modelling by Profundo, a consultancy.
Volkswagen ID.3 electric car (Image: Volkswagen.com)
The world’s biggest carmakers are all seeking to increase electric car production rapidly in the next decade, as laws in major markets including the EU and UK seek to ban new internal combustion engines as part of the effort to curb carbon pollution from transport. Yet at the same time carmakers still intend to sell millions more vehicles with petrol and diesel engines, in part because they remain more profitable but also because making the transition to electric vehicles (EVs) can include major upfront costs.
Read more: TheGuardian
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