Fossil fuel divestment growing as EV sales set for milestone

December 16, 2016

With electric vehicles (EVs) set to account for almost 10% of global vehicle sales by 2025, the fossil fuel divestment movement is making gains with investors.  

According to a report by Arabella Advisors, more than $5 trillion (€4.8 trillion) in investment funding is leaving fossil fuel stocks - double the market valuation reached only 15 months ago.  

The $5 trillion represents the total dollar value of all the investments held by parties who have sold some or all of their fossil fuel investments, so is a measure of the influence these investors are having on financial markets.  

It’s a stunning number,’ said executive director of the Wallace Global Fund Ellen Dorsey. ‘This movement began as an ethical concern, was quickly matched with financial concerns and I think it’s now being increasingly recognised as a fiduciary duty.’  

The fossil fuel divestment movement began in 2011 on university campuses. Now 688 institutions and nearly 60,000 people in 76 countries have sold off some or all of their holdings in fossil fuel companies.  

Navigant Research predicts that sales of all types of electric vehicle will grow from 3% of worldwide sales in 2016 to 9% by 2025. Of these, plug-in hybrids (PHEVs) will make up 72% of the total. The growing trend towards PHEVs is already evident in both the US and Europe, with the Chevrolet Bolt leading the electric vehicle market in the US, and the Mitsubishi Outlander PHEV topping the charts in Europe.  

In 2017, Navigant expects PHEVs to make up more than 36% of EV sales. Their market dominance will be fully realised as carmakers expand application of the PHEV powertrain to new, larger vehicle body types, which battery electric vehicles (BEVs) typically are not designed to accommodate.  

While hybrid electric vehicles (HEVs) are expected to make up 73% of the 2.6 million EVs sold in 2016, the decline of HEVs worldwide began in 2015; they will increasingly be replaced by PHEVs. However, HEV sales will still grow in Europe and China next year. In 2017, sales of 3 million EVs are forecast, driven by long 200 mile-range BEVs and the expanding availability of PHEVs. By 2018, half of EV sales will be PHEVs as the market surges to 3.7 million.

Also in News & Insights

UPDATE: News & Insights have moved to the Autovista Group website

March 31, 2017

Our regular automotive industry News & Insights are no longer being published on the Autovista Group Market Reports website.

Instead, you can now find the latest updates at our central Autovista Group website, home to our pan-European brands including Autovista, Eurotax, Glass's and Schwacke.

To stay up to date with rapidly changing market trends, we recommend signing up to our free Autovista Group Daily Brief which delivers our daily news stories directly to your inbox.

You can still find our in depth market reports here on the Autovista Group Market Reports site. Keep checking back as we have an exciting new report due to be launched shortly!

PSA to boost UK presence in the event of a ‘hard Brexit'

March 08, 2017

UK sales flat despite upcoming road tax hike, diesel demand plummets

March 08, 2017

UK new car registrations fell annually by 0.3% in February to 83,115 units according to the SMMT, driven down by weaker demand from individuals and companies. More noticeable, however, was the 9.2% drop in demand for diesels compared to February 2016, a steeper drop than the decline in Germany...