EV’s are Changing the World, but Who will be Left Behind?

As manufacturers transition production from internal combustion engines to electric vehicles, are they being short-sighted about supplying vehicles to many areas around the globe?  

We are hearing announcements from many manufacturers of their plans to go to 100% electric vehicle production in the coming 5 to 10 years. Jaguar Land Rover has announced its Reimagine Plan which calls for their Jaguar brand to go all electric beginning in 2025. Stellantis has confirmed plans for Alfa Romeo to be its first brand to go all electric with that transition happening in 2027. Volvo has announced plans to be EV only by 2030, and General Motors is also using that date as its target for Cadillac.  

Other manufacturers have announced an onslaught of electric vehicles, such as Mercedes Benz, which plans for the brand to be all electric by 2030. Toyota has ambitious EV plans, with Lexus leading the way and going all electric by 2030 in North America, Europe and China. All other markets are targeted for 2035. Audi has pledged to go electric by 2033, with the release of their last new gasoline powered car in 2026.  

While most vehicle makes that have made announcements of their plans would be considered luxury brands, General Motors has also pledged to go all electric for all of its other domestic brands by 2035.

In major markets such as North America, Europe and China, plans to develop an infrastructure to support EV charging have been at the forefront of discussions amongst government officials and environmentalists. But what about those markets outside of the highly developed nations and population centers? What about areas such as Central and South America, Africa and parts of Asia? If electric grids and charging capacity cannot be developed in these countries at the same pace as the EV conversions, will those markets be left behind? Will they be left to be supported by pre-owned, gasoline powered vehicles? And if that scenario turns out to be a byproduct of the EV rush, additional pressures may be placed on the used vehicle market due to a potential redirection of the vehicle supply chain.

Manufacturers should be careful about becoming too dependent on EVs and their limited, targeted distribution. Production issues could also arise as the supply chain of raw materials for batteries is currently controlled by China. The electric vehicle world is moving fast, but the brakes still need to be checked!

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