EV Growth and Consolidation

Sustainability Awakening

The shift toward electric vehicles and away from gas-powered cars is driving consolidation in the auto industry

The broader ecosystem of parts suppliers, service stations, and mechanics risks getting squeezed out of the market as car manufacturers consolidate.

A recent report predicts an epochal shift toward electric vehicles and away from gas-powered ones over the rest of the decade.

Consumer demand is shifting away from gas cars, with fewer than two-thirds of consumers surveyed wanting a “traditional” internal combustion engine-powered car in 2023.

It is predicted that demand for gas-powered cars and the components that make them up will decline steeply over the next five years.

Revenues from key electric parts like drivetrains and batteries are expected to surge by nearly 2.5 times over the same period.

1 out of 7 cars sold worldwide last year were EVs, up from 1 in 70 in 2017, according to the World Economic Forum.

The rising preference for SUVs is countering national climate goals and driving the world closer to dangerous climate tipping points, according to the International Energy Agency.

The biggest difference between electric and gas-powered cars and trucks is the relative complexity in their engines.

As mechanical moving parts are replaced by electronic components, suppliers will watch their market share shrink.

It is predicted that a wave of greater consolidation in auto companies will lead to many companies being acquired by larger rivals.

Electric vehicles (EVs) are more environmentally friendly than gas-powered cars, emitting fewer greenhouse gases and pollutants.

By switching to an EV, you can reduce your carbon footprint and help combat climate change.

Consider making the switch to an EV, and encourage others to do the same.

Together, we can create a more sustainable future for ourselves and future generations.

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