Volkswagen is set to overtake Tesla as the world’s largest manufacturer of battery electric vehicles (BEV) by 2024, according to a recent report by Bloomberg Intelligence.
Figures showed that most automotive marquees lack profit incentives to take over Tesla, except for Volkswagen as its sales volume for battery-electric vehicles will reach to 45 per cent by 2025.
The German automotive giant is also investing up to €30bn in the BEV supply chain.
The company plans to open six new battery-cell plants in Europe by 2030 as part of its electrification push.
“Looking ahead, automakers in Europe, China and elsewhere will continue to challenge Tesla via an impending wave of new models, though profit incentives are limited amid rising battery costs and a lack of scale,” commented Michael Dean, automotive analyst at Bloomberg Intelligence.
The report highlighted how market continues to be driven by China, as sales have surged over the last few years after the government launched EV subsidies in 2017.
“China’s carrot-and-stick approach to stoking EV sales could push battery-electrics to account for 25% of all passenger vehicle purchases by 2025,” added another Bloomberg Intelligence analyst, Steve Man.
Volkswagen announced last month it would build 800,000 EVs by the end of 2022 as part of its transition to net-zero, City A.M reported.