This global shift towards electrification is expected to have far-reaching consequences for traditional automakers. Industry giants like Toyota and Volkswagen are already projecting significant sales declines, with estimates ranging from 500,000 to 1 million fewer vehicles sold in the near future. These projections, however, may pale in comparison to the challenges that lie ahead as more countries implement ICE bans.
The transition to EVs is not merely a trend but a legal requirement in many jurisdictions. Over 35 countries worldwide have already mandated the shift to electric vehicles, with many setting ambitious targets for 2030 or 2035. This regulatory pressure, coupled with the need to meet stringent CO2 emissions targets, is forcing automakers to rapidly adapt or face obsolescence.