With the high and growing demand for electric cars in the market, several companies have joined the game of making new designs compatible with the new technology. The Swiss bank UBS has forecasted that there will be only two companies on top of the electric car market by the end of 2025. Tesla is the first company on the list. But the prediction talks about another company that will give Tesla high competition in the coming days.
The second company is the automaker giant Volkswagen VWAGY. The company has been fully dedicated to making high-quality electric cars that could give Tesla a run for its money. Their electric cars have witnessed huge sales all over the world, giving Tesla a head-to-head contest.
The Swiss bank has recently released its prediction on how fast electric vehicles will take over the automotive market. The report reveals that by 2040, electric cars will take over 100% of the car market worldwide. The competition over the domination of the market among the largest car-makers around the world will be a historical incident to be witnessed.
According to the UBS analysts, Tesla and Volkswagen will be the two dominating figures in electric car sales in the future years. They also predicted that Volkswagen will match with Tesla’s total volume of vehicles around 2022. By that time, each company will be able to supply nearly 1.2 million cars to the customers.
The top brands in the car industry such as Bugatti, Audi, Lamborghini, Bentley, and Porsche are all owned by VW Group. The company has already overshadowed Tesla becoming the biggest electric vehicle group last year. The European electric car market is the second-largest market after China. Volkswagen dominates over 20% and 25% of the total market in that area.
UBS has described Volkswagen as the ‘best EV transition story’ in the vehicle manufacturing area worldwide.
UBS analyst Patrick Hummel said that it is the perfect time for automakers to invest their full force in the market. In his video conference with the press on Tuesday, he also revealed that the automakers should concentrate on ‘gaining level’ quickly because ‘the level will be an engine of profitability.’
The UBS also forecasted that the making price of electric cars will be almost the same as regular cars by 2025. The cost difference between the most expensive electric and non-electric cars was nearly $5,000 in 2020.
The UBS analyst said, ‘Volkswagen is well-positioned for a value proposition like Samsung, a global brand trusted by its high-quality hardware, produced to scale.’ He also revealed that this may not bring the company as the same position as Tesla, but there will be high advantages surely.
As per UBS, Tesla is still ahead of VW in some technical aspects. The most significant aspect in which Tesla is ahead of the German company is their software. They are also advanced in electric powertrain, digitization, great engineering, and autonomous driving features.