ELECTRIC VEHICLES General Motors commits to 30 new electric vehicles by 2025
General Motors plans to pursue an aggressive electric vehicle expansion strategy over the next decade, with an ultimate aim of eliminating petrol and diesel emissions from light-duty vehicles by 2035 and achieve carbon neutrality by 2040.
In early March 2020, General Motors (GM) announced its initial plans to sell 1 million electric vehicles per year by 2025. Last November, however, the world-renowned automaker added USD7 billion to its pre-pandemic investment figure of USD20 billion for a total of USD27 billion. With this additional funding, GM aims to release 30 new all-electric vehicle models by 2025.
“Climate change is real, and we want to be part of the solution by putting everyone in an electric vehicle,” says GM Chairman & CEO Mary Barra.
Charting course to an all-electric future
In January of this year, GM announced additional plans to transition its global products and operations to carbon neutrality by 2040. GM will first do this by eliminating tailpipe emissions from new light vehicle models by 2035, an achievement that will be made possible by GM focusing over 50 % of the company’s overall capital spending and product development on electric and autonomous vehicles.
While it’s true that EVs don’t produce emissions, the electricity that’s used to manufacture the vehicles and later charge them can, and GM says that it is critical that EVs are charged with electricity that has been generated from renewable resources like wind, solar, and tidal power. To make this happen, GM is working with utilities companies and developers to build all-new renewable energy systems for use in its production facilities.
To make sustainable and renewable EV charging more accessible, GM is working with EVgo to add 2,700 new renewable-powered fast chargers to its national charging network. This will triple EVgo’s existing network of roughly 800 charging stations by 2025, coinciding with GM’s planned release of 30 new EV models which will be manufactured in GM’s ‘Factory ZERO’, an all-electric vehicle assembly plant that it has called “the launchpad” for GM’s wider EV strategy.
Meeting EV demand
GM’s goals are ambitious, but do they align with current and projected demand for EVs over the coming decade?
Deloitte estimates that the EV market will see a compound annual growth rate (CAGR) of 29 % over the next ten years, with total EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. At this point, EV sales would make up roughly 32 % of the total market share for new car sales.
This, compared to GM’s current performance, suggests that the automaker’s plan is far from fantasy.
Research shows that GM holds a 17.3 % share of the U.S. automobile market and has already sold somewhere between 200-300,000 EVs globally in the last few years. Each year, GM sells millions of non-electric vehicles in the U.S., too. In 2020, the automaker sold 2.5 million. If GM is able to keep up or increase its current sales momentum and translate it all to EVs by 2040, there’s no reason why it can’t exceed its carbon neutrality goals.