The automotive industry is transitioning with speed towards a more energy-efficient future, fueled by leading manufacturers investing heavily in electrification and hybrid technologies. At the consumer level, the conversation is slightly different but just as energetic. People are excited about the concept of a more environmentally friendly solution to personal transport, one that has the potential to give us everything we need with little to no emissions.
This is certainly reflected in the actions of governments around the world and particularly in Europe. Norway recorded a significant milestone in 2020. For the first time, the sale of electric cars outnumbered the sale of conventional petrol- or diesel-powered vehicles. In fact, fully electric vehicle sales accounted for 54% of total new car sales in 2020. What is perhaps even more significant is that when including hybrid vehicles, the total share for fully or partially electric vehicles reached 83%. In just five years, the market share of petrol and diesel car sales in Norway has swung from 71% to just 17%1.
It is no secret that Norway’s government is offering large incentives to change consumer habits. The established target is that every new vehicle sold has zero-emissions by 2025. The figures for 2020 put Norway ahead of its own schedule for hitting the target. In contrast, the UK government is taking a slightly different approach, by banning the sale of petrol and diesel cars by the end of 20302.
In the US, the governor of the state of California is trying to introduce a mandate that would ban the sale of fossil fuel vehicles in the state, from 2035. While Californians would be allowed to keep using existing vehicles running on petrol or diesel, all new cars and passenger trucks would need to be zero-emission. Of course, zero-emission doesn’t necessarily mean the vehicle will need to be electric, but it is difficult to see how else it could be achieved.
These lines in the sand, drawn by Norway, the UK, and others, give automotive manufacturers targets of their own to hit. There is clearly a growing customer base for energy-efficient vehicles, but just how the industry will meet that demand by 2030 is not so clear. The findings of a recent survey, commissioned by Molex and conducted by Dimensional Research, asked a cross-section of leaders in automotive OEMs, Tier 1 and Tier 2 suppliers what they believed we could expect from vehicles by 20303.
The definitive results point to technical innovation as key, and at the top of the list are electrification and connectivity. This will lead to increased autonomy over time and, just as importantly, a reduction in range anxiety. The majority, 94% of respondents, felt cars in 2030 will include some level of autonomy and a majority (66%) believe it will primarily be included to increase road safety. Almost all – 97% of respondents – believed that range anxiety will be solved by 2030, primarily through improved battery technology and charging infrastructures (63%), but also through consumer acceptance of the technology’s limitations (34%).
The forces behind these innovations are coming from several directions. Most notable is customer demand, which includes increased awareness and desire for options with better environmental credentials. The respondents also recognized that government regulation is also influencing the way OEMs are innovating.
Support for the ‘three zeros’ is also quite clear: zero emissions, zero accidents, and zero waste. The car of 2030 is expected to deliver a lot without adding anything, but the survey did identify that this will likely lead to consumers incurring a higher selling price.