Cox Automotive believes automotive brands will continue prioritising EVs despite dampening consumer confidence and rising raw material costs.
While the cost of producing vehicles is increasing, the rise has been particularly acute for battery vehicles due to the scarcity of critical materials such as cobalt, magnesium, platinum, and lithium. Similarly, growing EU financial and global supplier challenges dampen consumer-led demand for new electric vehicles.
Nevertheless, EVs remain a high priority for most leading automotive brands, who are focused on capitalising on the transition to cleaner forms of transport. Against a backdrop of pressing Net Zero carbon reduction targets, the outright ban of new petrol and diesel car sales from 2030 in the UK and 2035 across the EU, and considering the looming threat of fines and sanctions, the pace of change is only going to increase.
Hydrogen vehicle production will likely remain on the fringes for the time being. As such, EV will continue to be a heavy investment market in 2023, although infrastructure still has some catching up to do.