Electric vehicle sales will likely jump over the next two to three years as prices fall and more options are made available, according to BlackRock’s global head of thematic and sector investing.
Customers will have more opportunities to move away from traditional combustion engines to electric vehicles and their options will not be restricted to only certain auto suppliers, Evy Hambro told CNBC’s “Squawk Box” on Thursday.
“I think we’re at this tipping point of change,” Hambro said. “Over the next two years, we’re going to see this massive extension of breadth of models, we’re going to see price point of entry drop as well. We’re expecting to see a big lift in electric vehicle sales over the next two to three years.”
Earlier in the year, the International Energy Agency predicted that electric vehicle ownership will jump to about 125 million by 2030, spurred by policies that encourage the purchase of clean-running cars. That would mark a big jump from 2017 when the agency estimated there were 3.1 million electric vehicles in use.
That’s because most traditional automakers are now investing to create their own electric vehicles. For example, Volkswagen recently said it will spend about $50 billion on new plants, electric cars, autonomous driving and other mobility services in an attempt to be the most profitable maker of electric cars.