Electric cars not expected to hit the mainstream until 2025?
We’ve heard quite a bit about the move to electric cars. Heck before its recently approved merger with Solar City, Tesla was essentially just an electric car company. Granted they are beautiful cars, but hardly ones that have hit the mainstream. We’ve seen competitive efforts from Chevrolet with the Volt and Honda is slated to have an all-electric vehicle hit the market in 2017.
It would appear the expected tipping point for this market is sooner than later, but as we’ve often seen in the past with Disruptive Technologies they tend to hit that tipping point later than expected. There are several factors involved including product price points, ample supply of parts to ensure adequate production and that little thing that incentivizes suppliers to produce those parts… something called profits. If we factor that last part into the equation, it’s possible the electric car market will indeed take longer to hit the mainstream.
German automotive supplier Continental (CONG.DE) will continue to post losses with products for electric cars until at least 2019, its Chief Executive Elmar Degenhart told German weekly magazine WirtschaftsWoche.
“The shift from combustion engines to electro-mobility will only massively take off between 2025 and 2030. Sometime between there, the number of combustion engines around the world will peak and then moderately decline,” the magazine quoted Degenhart as saying.
Source: Continental sees no profit from e-car products before 2020: CEO | Reuters
