This was the year that the auto industry deviated from its original course toward an all-electric future. According to a Reuters research, manufacturers were preparing to invest $1.2 trillion by 2030 to transition electric vehicles from niche goods to mass-market versions, many of which had in-house software and battery development. This was the case heading into 2023.
By year’s end, EV startups like Rivian (RIVN.O), Tesla (TSLA.O), and other traditional automakers are revising their product strategy and cutting back on investments. In addition to the billions of dollars already invested in EV subsidies, legacy manufacturers are pleading with legislators for additional assistance to defray the hefty expenses of the EV transition.
Global consumer demand for electric vehicles is rising. However, the adoption of EVs is not occurring as quickly or profitably as industry leaders had hoped, particularly in the US.
Many electric vehicles have become unaffordable for middle-class users due to high borrowing rates. For consumers accustomed to adding hundreds of miles of fuel driving range in a matter of minutes, the absence of charging infrastructure is a deal-breaker.
“EVs are going to be the future of the passenger automobile business,” stated Jeff Parent, the COO of the nationwide chain of auto dealerships in the United States, AutoNation (AN.N). However, he warned that “the next three to four years, things are going to be bumpy” due to customer concerns about pricing and charging.
CEOs in the sector are increasing their bets on their plans to convert to entirely electric fleets by the middle of the ensuing ten years.
When asked if General Motors (GM.N) still intends to be entirely electric by 2035, CEO Mary Barra responded, “We’ll adjust to where the customer is,” earlier this month at the Detroit Automotive Press Association.
