UBS: Volkswagen will be the 1st mass market electric car profit maker

Volkswagen will become the first global automaker to make money selling battery-only electric vehicles (BEVs) with profits kicking in from 2022, according to a report from Swiss investment bank UBS published last week

Sales of battery-only cars and SUVs will accelerate to more than 15% of the global market by 2025, while Tesla’s position as the world’s most desired electric vehicle will come under pressure from German competition, UBS said.

The prediction for VW will also be welcomed by investors, given that the company plans to spend $36 billion through 2024 on a family of electric cars right across its mass market brands. But the UBS prediction, of 15.6% to be precise, still falls short of VW’s sales expectations. VW has said by 2025, at least 25% of its global sales will be BEVs. And another cautionary note for VW and other electric car wannabes, UBS’s forecast is much stronger than most.  Morgan Stanley expects BEV sales to rise from about 2% globally last year, to only 11% by 2025, which is around where most other forecasters sit.

IHS Markit predicts a BEV market share of 14% in Europe for 2025, implying a much lower total for global sales.

Full report HERE

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