Luke Murray’s Post

Following the shift in UK government, the automotive industry is set to experience significant transformations, particularly in the electric vehicle (EV) landscape. Points of interest include: - Re-introduction of the 2030 deadline for the end of new ICE car sales - Part-financing of new gigafactories through the National Wealth Fund - Accurate car labelling and battery health certification to boost consumer confidence. With the government’s new and supportive approach, the transition to electric is set to accelerate. Our new initiative, EValuate, fully embraces the adoption of emission-free vehicles. Read more in our recent blog from Scott Hamilton-Cooper below: https://bit.ly/3XZzFqj #UKAutomotive #ElectricVehicles #Sustainability #Innovation #FutureOfMobility #EV

The vast global overproduction of electric cars at a time of stalling consumer demand is likely to result in millions of zero-emission vehicles being left unsold over the next two years and hasten price wars, according to private industry research. This is likely to benefit consumers but could send parts of the industry into crisis, experts say. Regulators and legislators, meanwhile, are likely to come under renewed pressure to rein back their ambitions to reduce carbon emissions, which has fuelled the electric car production boom. https://lnkd.in/efhU_Nrr

The vast global overproduction of electric cars at a time of stalling consumer demand is likely to result in millions of zero-emission vehicles being left unsold over the next two years and hasten price wars, according to private industry research. This is likely to benefit consumers but could send parts of the industry into crisis, experts say. Regulators and legislators, meanwhile, are likely to come under renewed pressure to rein back their ambitions to reduce carbon emissions, which has fuelled the electric car production boom

After a century at the top of the automotive industry, the combustion engine is giving way to the electric powertrain. Regions with businesses reliant on fossil fuel-powered cars, from manufacturers to suppliers, are planning for a challenging future - and hoping the EU will provide funds to soften the impact. In my latest article for FORESIGHT Climate & Energy I took a close look at what the electric vehicle transition means for EU automotive regions, particularly those workers employed in the combustion engine supply chain. What emerged is a complex picture. While regional leaders expect the number of jobs related to car production to decline, the creation of new jobs in adjacent industries, as well as the greater digitalisation of cars, will partially offset this. However, to what degree former combustion engine workers will be absorbed into new positions is debated. Read (or listen to) the full piece below: https://lnkd.in/eQW8GvEX

‼️ European Automobile Manufacturers' Association (ACEA)‼️ Brussels, 19 September 2024 - 'A continuous trend of shrinking market share for battery electric cars in the EU sends an extremely worrying signal to industry and policymakers'😱 Indeed it does - it also sends an extremely worrying signal to EV advocates, investors, and champions of the managed transition to electrified vehicles... It's called a banquet of consequences - consequences of sustained anti-EV rhetoric, broken promises, tardy and bureaucratic charging industry support, and automotive industry inertia. Meanwhile...over in China. 🤔 My suggestion? If it comes to significant fines for failure to comply with EV mandates, then pool that money into a ubiquitous public charging infrastructure. Ironically, mirroring the Volkswagen Group's multi billion dollar investment into Electrify America that came as a consequence of Dieselgate. We've been kicking the can down the road for far too long - it's time now to pick it up! 🥫 #automotive #electricvehicles #innovation #climatecrisis

🚗⚡ The Future is Electric! ⚡🚗 In 2023, the EU hit a major milestone with 1.5 million new battery-only electric cars registered, driving the EU total to an electrifying 4.5 million! That's a remarkable 48.5% surge compared to 2022. 🚀 The shift to electromobility is accelerating faster than ever, with electric cars now making up 14.6% of all new registrations. Just five years ago, this number was under 1% – what a journey! 📈 Here's how we've powered up over the years: 5.3% in 2020 9.0% in 2021 12.1% in 2022 14.6% in 2023 The road to a greener future is being paved with electric power, and the momentum is unstoppable. The EU is driving change, one electric car at a time! 🚘🔋 To ensure the success of this transition, a stable regulatory framework and consistent, predictable incentive programs for consumers and industry are essential. These measures instill confidence in manufacturers to innovate and invest, and encourage consumers to switch to electric vehicles. Predictable policies and incentives will sustain growth, support infrastructure development, and contribute to a sustainable, electrified future. 🌍🔌 #Electromobility #SustainableFuture #EUInnovation #ElectricRevolution #GreenTransport #Eurostat

Today, European Automobile Manufacturers' Association (ACEA) raised the alarm on the EU's EV transition. Indeed, the automakers make some valid points: 📉 EV registrations are failing ⚡ EV charging is lacking 🔌 Energy prices are too high 🔋 #criticalrawmaterials have not been secured 📓 Regulation is burdensome 🚗 international competition can be unfair But in my latest op-ed in the Green Mobility Magazine, I argue that the broader industry must also shoulder some responsibility for the current state of the EU's EV transition. Indeed, as powerful economic undertakings, automakers had, and still have, agency. They could have spent more time and effort innovating, optimising, and securing resources to compete with foreign manufacturers. They could have negotiated with private capital to ensure that EV charging infrastructure was sufficient to support EVs. For reference, just look at Tesla: they brought EV creation, sales, and charging all in-house and gained a competitive advantage in the USA because of it. Instead of spending time, money, and energy lobbying for less ambitious EU regulations, they could have directed their money to addressing the very real issue of heavy-duty vehicle emissions, at least to the tune of €2.749m if the Transparency Register is anything to go by. Overall, European car makers are some of the most powerful, respected, and successful in the world. So, it cannot follow that Europe's failing EV ecosystem is solely the fault of policymakers. Europe's auto giants need to look in the mirror. You can read more of my thoughts on the state of the EU's EV market in my latest piece "EU’s Electric Vehicle Struggles: A Symptom of Policy & Industrial Myopia", available here: https://lnkd.in/eF6WytJ5 #acea #cars #EU #automotive #policy

Our expert Mikaël Le Mouëllic recently discussed with CNN at the #ParisMotorShow the challenges facing the auto industry, from slowing EV demand to the need for affordable electric options. Mikaël shared insights from our latest study, where 60% of respondents cited acquisition cost as a barrier to going electric, with batteries alone making up 40% of vehicle costs. How can the industry innovate to make EVs more accessible? Watch the full interview: https://on.bcg.com/3YJ42A6 #ElectricVehicles #AutoIndustry #SustainableMobility

The German automotive industry is amidst a crisis. Industry representatives recently called for a relaxation of the EU’s climate targets for the sector, as they fear sluggish sales of electric vehicles. However, this concern may be unfounded, as a new study from Transport & Environment, an NGO for sustainable mobility, shows. T&E estimates that battery electric vehicles (BEVs) could reach a 20 to 24 percent market share in the EU for 2025 based on sales in the first half of the year and sales forecasts. A key reason for this is a wide range of new, more affordable electric car models entering the market next year. Currently, the market share of battery electric cars in the EU stands at 14 to 15 percent. Learn more about the challenges and opportunities that electromobility is currently facing in Europe and other important markets in our detailed market commentary: https://lnkd.in/eAwAzYJb To the T&E report: https://lnkd.in/edVtWxKD Publication of the European Automobile Manufacturers' Association (ACEA) on the current market share: https://lnkd.in/eciFhPMf #rawmaterials #criticalminerals #electricvehicles #eu  

In the automotive industry we now are seeing the classic effects of a phenomenon called the 'bullwhip affect. This same phenomenon touched very much every other product category during the height of the pandemic, with varying impacts. The shortages because of reduced production during mandatory COVID lockdowns, high perceived market demand because of shifting government and public sentiment towards EVs. But with interest rate raises higher costs for housing, groceries and insurance. There is a reduced capacity to borrow for many families. Traditional manufacturers of combustion engine cars also had these difficulties, but sales kept pulling through as many owners wanted to purchase traditional cars with a lack of charging infrastructure. If Manufacturers want to move stock, they may need to be part of the solution regarding capital finance for consumers. Sharp rates may help turn over inventory. LinkedIn News Australia #supplychain #demandmanagement #automotive #australia