The car is “putting watts” in Europe
Electrification is changing the automotive world, especially in Europe where the sale of petrol cars will be banned in 2035.
The European car market will be severely constrained in 2022 by shortages of electronic chips.
But electricity, protected by manufacturers, remains fine. Although they represent less than 2% of sales in 2019, they will reach a 12.1% market share in 2022. And the year 2023 could still mark further acceleration.
“Growth in electricity sales will outpace market growth,” according to LMC’s Al Bedwell.
China remains a pioneer in vehicle electrification, with excellent public policies so far, and sales of electric cars (EVs) there will double again in 2022. But they may slow down in 2023, with the evolution of economic activity of China, according to experts from LMC.
The North American market has been slow to do so. But with the increase in battery-powered models at Ford or GM, especially pick-ups, the electric share could reach 7% by 2023, with 1.3 million vehicles planned, according to LMC.
In total, one in eight cars sold (12.5%) worldwide could be electric by 2023.
head of Tesla
Tesla, the automaker that started the electric revolution, continues to be the world’s biggest seller in this category. Elon Musk’s company has sold 1.3 million units in 2022, led by its Model Y SUV. It predicts a 37% increase for 2023, to 1.8 million units.
But the Chinese BYD sees it: the manufacturer almost triples its sales of electric vehicles by 2022 (up to 900,000 units) and intends to develop in Europe and North America.
Chinese manufacturers like BYD or NIO are “the most competitive in the world, working harder and smarter,” Elon Musk himself said at the end of January.
Historic sectors such as Volkswagen (with its ID range but also the Porsche, Audi or Cupra brands) and the Stellantis group (Peugeot, Jeep) are also multiplying the launches of electric models to position themselves in this juicy market.
Luxury kings like Rolls-Royce or Ferrari plan to launch their first battery-powered models soon.
Only Toyota continues to defend hybrids, presenting them as a more accessible and concrete solution for the ecological transition.
Electric cars remain on average more expensive than their gasoline equivalents, from 35,000 euros, and are therefore not accessible to purchase for the middle class, despite heavy subsidies.
But Tesla announced price cuts of up to 20% in Europe and the United States in early January, followed by Ford.
In Europe, manufacturers can follow the same path, to gain market share but above all to comply with European CO2 emission standards.2 increasingly demanding, according to German analyst Matthias Schmidt
“In 2022 there will not be enough cars to meet demand. The situation may reverse during 2023 and manufacturers will have to + push + their cars, and lower prices”, commented Mr. Schmidt.
They may also react to the arrival of Chinese manufacturers, who besides offering imported electrics at advantageous prices, are now planning to produce them in Europe. Smaller and cheaper models, such as the Renault 5, should also reach the market in the next few years.
Lack of terminals
Fear of breakdown remains one of the main factors preventing motorists from switching to electric vehicles. Their autonomy is limited to a few hundred kilometers and recharging them can take about twenty minutes to several hours, depending on the power of the terminal.
Although most of the recharging is done at home, the development of plethoric and fast terminal networks is very important for long journeys, according to representatives of the automotive sector.
The EU will need 3.4 million charging stations by 2030, according to a report by consulting firm McKinsey, with updated power grids to cope. In total, this could represent a value of 240 billion euros.
Behind Tesla, players like Fastned or Ionity (which brings together BMW, Ford, Hyundai, Mercedes and Volkswagen) are investing to mesh the sides of the road.