Paul Perera’s Post

By 2024, over 1 in 5 cars sold worldwide will be electric! This surge in electric vehicle sales is set to reshape the auto industry and reduce oil consumption for road transport. With 17 million EVs projected to be sold globally in 2024 and significant growth in key markets like China, the US, and Europe, the future of transportation is electric. #ElectricVehicles #CleanEnergy #FutureofTransportation #SustainableMobility

China is far outpacing the U.S. and Europe when it comes to EV adoption. According to a new report by S&P Global, 34% of all new car registrations in China are for fully electric or plug-in hybrid vehicles, compared to 24% in key European markets and just 10% in the United States (see chart). S&P makes a number of interesting predictions about the trajectory of EV adoption, including: - Globally, EV share of new car sales will increase from an estimated 17% in 2023 to at least 39% by 2030, and potentially over 50%. - The global fleet of internal combustion engine cars and other light vehicles will peak in the next few years and then begin to gradually decline. Demand for gasoline and diesel fuel will peak as well. - By 2030, EV usage could reduce global oil demand by more than 3 million barrels per day (about 3% of current demand). Link to report: https://bit.ly/3S5Ps2e

The demand-side and supply-side effects of crude oil on traditional automakers are pretty well known at this point, but our knowledge is still limited on how battery metal supply chains will impact EV manufacturers. Because we'll need institutional investors to help power EV adoption, I'm curious to see how the production-cost or demand effects of battery metals play out on EV builders' equity performance geographically.

An insightful article from my colleagues from S&P Global Ratings and S&P Global Mobility on the weakening outlook for Battery EVs. Thanks to my colleagues Demian Flowers and Vittoria Ferraris for putting this together. Market penetration is contracting in every major region and if consumer demand doesn't accelerate, this may lead to governments softening their regulatory stances on hybrid and ICE vehicles. Consumer concerns in the US and Europe remain: - Cost - Range anxiety - Charging infrastructure - Residual value - Rapid technological obselescence Legacy OEMs are scaling back on EV production due to consumer demand and margin compression. There are also headwinds in relation to battery prices (making up 40% of EV price), battery supply chain concentration risks and debates over the most optimal battery chemistries. I remain an optimist however: - EV + Hybrid sales expected to outweigh ICE vehicle sales by 2026. - EV adoption in China is expanding due to low manufacturing costs, substantial government support and an abundance of affordable products. - The slowdown of EV adoption may actually help OEMs: stronger cashflows from ICE platforms can fund the higher production cost of EVs over the next decade. - As with any technological advancement, EV production costs will continue to come down over time and price parity with ICE vehicles could restimulate demand. - When price parity is acheived, government subsidies can be more readily directed towards the charging infrastructure as opposed to consumer subsidies.

There is a great Harvard Business Review summary on the key drivers of China's EV adoption boom — with more than half the EVs on the road worldwide found in China. One helpful manufacturing short-cur, according to the author, is that Chinese automakers kickstarted their EV development by focusing on adjacent industries — namely, electric buses and motorcycles. https://lnkd.in/gfZqV_nR #electricvehicles

The global automotive industry is rapidly shifting towards electric vehicles (EVs), driven by environmental concerns, technological advancements, supportive government policies, and the indispensable role of key players. Our latest blog, '𝐂𝐡𝐢𝐧𝐚’𝐬 𝐄𝐕 𝐑𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧: 𝐏𝐨𝐥𝐢𝐜𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐚𝐧𝐝 𝐌𝐚𝐫𝐤𝐞𝐭 𝐆𝐫𝐨𝐰𝐭𝐡' explores this transformation, highlighting the surge in global electric car sales, especially in China, Europe, and the US. Check here: https://lnkd.in/d8UscGSe In addition to examining China's dominance in the EV market, with a 𝟔𝟎% share of global sales in 𝟐𝟎𝟐𝟑, we delve into the key policies and initiatives fueling the growth of commercial EVs in the country. Through it, you can also discover how China is shaping the global EV landscape, with a key focus on the development of its charging infrastructure and the economic & environmental impacts of electrifying commercial vehicles. So, make sure you check out the full blog and explore the future of mobility and the role of electric vehicles in creating a sustainable future. And remember to like this post and follow us for more insights! . . . #evrevolution #automotiveindustry #electricvehicles #electriccar #evchargingstations #batterytechnology #urbanmobility #globalinsights #inkwoodresearch

China is poised for a significant increase in electric vehicle (EV) adoption in Q2 2024, with EVs’ share of sales to climb further from the 42% in March, propelled by Chinese EV makers’ aggressive sales and marketing strategies, says Fitch Ratings. The intensifying price war and escalating marketing expenditure may squeeze the near-term margins of EVs, while the declining utilization of production capacity for conventional internal combustion engine vehicles may further strain the profit outlook for Sino-foreign joint ventures. Read the full story at: https://lnkd.in/e-3mfG56

The Chinese EV industry demands the focused attention of North America's 3PL sector. The unfolding dynamics in this region will significantly impact numerous businesses. #3pl #3pllogistics #4pl #electricvehicles https://lnkd.in/gFmfu-cC

Global EV sales up 21%! In #July, global sales of fully #electric and plug-in hybrid vehicles experienced a significant upswing, rising by 21% y-o-y, as stated by Rho Motion. The growth was primarily driven by #China, which saw a remarkable 31% increase in EV sales during the same period. BYD, China's and the world's biggest #EV maker, reported increases of 13% and 44% in its global #BEV sales. #linkedin #news #EVadoption #electricvehicles

The numbers don’t lie: China is an absolute powerhouse of an EV maker. Figures from 2022 suggest that 6.8 million electric vehicles were sold in its domestic market during that 12-month period, while North America, which is still clinging to the title of world’s superpower, managed around 800,000 in the same timeframe. https://ow.ly/ZA8f50Qm11A #EVindustry #EVmarket #EVsales #ChinaEVs #EVtrends #EVstatistics #globalEVmarket #EVgrowth