11 May, 2022
Industry Overview - Electric Vehicles
- Throughout the last decade, as demand on ICE vehicles started to gradually deteriorate, traditional automotive industry saw notable alterations predominantly fueled by changes in consumer preferences, newly ratified laws and plethora of techno-economic factors. Synergy of all the above drove the surge in EV sales, that doubled in 2021 to represent up to 9% of the global car fleet.
- With battery being the most vital and expensive component, EV market is highly exposed to risks associated with supply chain issues of semi-conductors and the recent uptrend of battery metal prices that saw a 124% increase last year. Aforementioned factors could potentially put a strain on automakers’ margins.
- Zero emission targets, surge in fuel costs, accommodative policies, tax subsidies and other various incentives should serve as a deterrent to aforementioned risks and further accelerate the global trend of electrification.