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The improvement in ICE efficiency leads to an interesting question whether it can meet or even exceed those of the power plants (40%?) given the electric cars can't all be charged using solar or wind (?!) power. ICE technology in the highly competitive auto market in contrast to the latter advances rapidly so it is not out of the question IMO.
As long as there's enough economic value to support an ICE industry, it will remain viable. Even if internal combustion tech is banned for everyday driving, sport usage will live on. As Ferdinand said, the last car built will be a sports car.
When dependence on fossil fuels for power reaches nil, that's when the ICE bows out for common usage.
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