Friday, October 25, 2019

OVERVIEW OF THE CURRENT SITUATION (1st part)

Seeing the panorama of the electric vehicle market,  the percentage of sales is very low (1.5% of the United States market). There is some distrust on the part of the clients, in venturing to test an electric vehicle, because they have doubts of them and do not want to buy the first ones for uncertainty to fail and also, because they observe that the industry is not strongly established with a large number of vehicles or infrastructure within their countries.

Now, it must be taken into account that the autonomous vehicles necessarily by the trend, will choose to put aside a combustion engine that needs gasoline, and start establishing from the beginning, an electric motor to its units that are going to be manufactured .

There is a high degree of uncertainty on the part of companies that produce electric vehicles, especially due to the lack of knowledge they have regarding the logistics of the same companies. Today, there are very few specialized suppliers that offer logistics services for this industry, in addition to them, in the same way, it has not yet generated a strong and stable knowledge to develop its service, because it is an industry in which nobody is a pioneer at all, despite the fact that there are some with a considerable number of years providing the service . This can be seen reflected in the transportation of one of the main inputs for an electric vehicle, which is the engine.

Due to what we have already mentioned so far and due to various other factors, the investment is also perceived as risky. In addition, it must be considered that there is a decrease in vehicle sales, and that there is a probability  that a recession will come in the automotive industry, so that the period of return for investors is going to lengthen even more. The next 3 to 5 years will be crucial for the automotive industry.

Today, electric vehicles continue to be high cost, for reasons that the same production and logistics costs are high. The change that we will witness within the industry in 5 years, will be abrupt. Competitiveness does not stop and will not stop rising, so that many companies that do not have the resources to make large investments can be at risk, although it is expected that there will also be different alliances with the objective of reducing costs mainly .

We mention these points, because as in many other industries, the changes that are generated are gradual. What we hope to see in the first place is the growth in sales of conventional electric vehicles, which will open the way to more complex vehicles such as autonomous vehicles.

During 2019, we have witnessed the revelation of various projects in which large companies such as Lamborghini, Jaguar, Rolls Royce, Bentley, BMW, Renault, DS Automobiles, Mecedes-Benz, Peugeot, among others, that have brought to light their  autonomous vehicles, creating a great expectation of what we could see in the market between approximately 2030-2035.

OVERVIEW OF THE CURRENT SITUATION (1st part)

Seeing the panorama of the electric vehicle market,  the percentage of sales is very low (1.5% of the United States market). There is some ...