Experts predict Diesel will be obsolete as electric dominates

Date: 10 JAN 2017posted by Car Rentaledited by WinX

In a recent annual global survey conducted by KPMG, which surveyed automotive executives globally found 90% of the executives expect battery fueled electric vehicles will dominate the marketplace by 2025. Senior executives working for vehicle manufacturers, suppliers, dealers, financial and mobility service provides plus car users were participants in the survey. In the same survey, 62% of the executives felt that diesel is losing its importance for manufacturers and its share of the market and will eventually become obsolete. This comes as the consumer market is currently trending away from diesel since the Volkswagen scandal and more awareness of being eco-friendly. The sale of diesel engine vehicles are currently on the decline and some manufacturers have stopped producing those models.

John Leech of KPMG, quoted "Improvements in the cost and range of battery technology, coupled with growing concern over the emission of both carbon dioxide and nitrogen oxides from diesel engines, means that almost the whole automotive industry believes that the mass adoption of electric cars will happen during the next decade." 93% of the participants plan to invest in electric vehicle technology over the next five years. With major players in the industry making extraordinary strides in battery capabilities and range, electric cars will be more practical in the future. Some of the biggest issues such as long charging times and travel range are being addressed today with the construction of super charging stations. As more of these become popular in a consumer's everyday life, the whole sale adoption of electric vehicles is only a matter of time.

A majority of 74% executives felt that more than half of private car owners will soon not do so in the future as they opt out to rent or use a car service instead. Researchers and experts believe there will be fewer cars on the road and therefore less money to be made from manufacturing vehicles. However, this does not have the executives in a panic since 85% of the executives feel there will be a shift in profits which will be coming from providing new digital services than by selling vehicles alone. Leech said "Car makers plan to sell a myriad of new digital services to vehicle users. Today car makers already make substantial profits from the sale of consumer finance and annual vehicle insurance but this will grow in the future as innovative services such as remote vehicle monitoring and the integration of the car as a focal point in people's ever more connected lifestyles are demanded by consumers."

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