It is an outstanding moment in the outlook of the EV industry, as expectations rise with the commitment from top players of more than $90 billion in investments for electric cars and batteries, as per an analysis from Reuters.
Although the current share of EVs in the global automobile market is just 1 percent, there is excitement and anticipation that such investments mark the upturn of the market share for the coming decade, and a critical moment for Tesla to secure its place as the main choice, once it manages to resolve recurring problems in its production line for model 3
Included in this financial effort is Ford’s increase by twofold of its scheduled investments into the EV sector, which comes as an assessment of the new technologies in the midst of the automaker giant’s discharge of ex-CEO Mark Fields.
Reuters adds: “Investments in electrified vehicles announced to date include at least $19 billion by automakers in the United States, $21 billion in China and $52 billion in Germany”. However, as it was gathered from statements from US and German auto executives at the Detroit auto show most of those investments are destined for China, where the government has enacted escalating electric-vehicle quotas starting in 2019.
“… Daimler has said it will spend at least $11.7 billion to introduce 10 pure electric and 40 hybrid models, and that it intends to electrify its full range of vehicles, from mini-compact commuters to heavy-duty trucks. … The largest single investment is coming from Volkswagen AG, which plans to spend $40 billion by 2030 to build electrified versions of its 300-plus global models.”
Toyota North America – Not so sure of timing
In the subject of the EVs’ outlook for getting a bigger piece of the global automobile market, there are a few things to consider, for one thing, the electric cars come with a bigger price tag than the hybrids, which needed almost two decades to access a small share of this market. In contrast, and as mentioned by the CEO of Toyota North America, Jim Lentz, who was quoted at the Detroit Auto Show as saying “it took 18 years for hybrid vehicles to gain a 3% share of the overall market, and they are less costly than plug-in vehicles, that it would take much longer for electric vehicles to gain a similar market share. …”
“What’s it going to take to get to 4% to 5%” share for plug-in vehicles, Lentz added. “It’s going to be longer.”
This stand, by the Toyota US firm, sends the message across the board of the automaker intentions to dismiss greater investments possibilities on the EVs’ market, which will undoubtedly slow down its presence for the coming decade.