prospects for the electric vehicle industry

Electric cars

Published in: May 13, 2023: 07:11 PM GST
Last updated: May 13, 2023: 07:31 PM GST

China comes first in controlling the electric car market with a 60 percent share, European economies second, and America ranks third in terms of market share. The jump and the real beginning of selling commercial quantities to the markets was in 2021, and expectations indicate that the Chinese and European economies will be the first to lead people’s dependence on electric cars instead of fuel-powered cars, through stimulus policies in China and banning the use of conventional vehicles in Europe. I believe that we will not see the enforcement of these policies clearly until after 2030, because the infrastructure for electric cars will not be sufficiently available before that, for example, France and England are working to ban the sale of fuel-powered vehicles in 2040, while China is currently providing generous stimulus support of an average 15 thousand dollars per car, and accordingly we can predict that the policies of governments will be different. China will have economic policies, while in Europe it is regulatory to stimulate the use of electric cars. This view is attributed to the fact that the Chinese economy has supply chains that make it very difficult to compete with it even from the giants of European industry. And we will see European factories dependent on China in the manufacture of the main parts of electric cars, because it is the least expensive, and the Europeans will not be able to compete with China in this industry.

On the other hand, the increasing demand for electric cars leads to an increase in the demand for batteries and rare metals that go into the manufacturing processes of electric cars, all of which are available in the Chinese economy and in the supply chain that it controlled externally and at lower costs, that is: the Chinese economy at an early stage expanded its Its manufacturing chains for this type of minerals and in a number of countries at the extractive and industrial levels, which are proactive steps for the future of the global economy, especially since all renewable and energy-saving energy generators depend on a supply chain for mining and rare metals industry.

It is likely that China in the electric car industry and its capabilities in competitive supply chains that it has reached to date, will repeat the experience of Japan’s success in the eighties in the electronics industry, which at that time dominated the world with its quality, reliability and high competitiveness at prices that are difficult to compete with. China will make the European and American markets re-strategize in the auto industry, especially with the growing demand of countries for electric cars after the completion of the infrastructure to provide electric cars on the roads globally, in other words, with the acceleration of demand for electric cars and trucks, the demand for cars that depend on fuel will decrease.

Finally, Lucid Motors, which specializes in the manufacture of luxury electric cars, its decision to establish a factory in Saudi Arabia was one of the most important strategic successes of the Public Investment Fund because of its investments in the company, and thus entered the Saudi economy in manufacturing the new generation of cars on an equal footing with the technology giants and electric car makers in the world. the world.

* Quoted from “Al-Eqtisadiah” newspaper.