17 august 2017
Are electric cars a threat for the European automotive industry?
The development of the electric car could change both the demand and the supply of vehicles. At the moment, most consumers are not yet ready for an electric car, due to high prices, unsatisfactory performance or excessive charging time. Nevertheless technological progress and economies of scale could finally convince them. In terms of supply and manufacturers, the emphasis could be placed increasingly on automation and on certain raw materials. When considering the different perspectives we can imagine that, by 2035, 100% of new car sales will be electric.
The bottom line?
- The technological evolution will lead to easier charging, greater autonomy and a reduction in price, resulting in stronger demand.
- The production line will have to call on more external suppliers and be less dependent on a large workforce.
- Europe has not yet caught up in terms of the production of electric vehicles and could its exports could drop in the near future.
Read the complete analysis here.