Auto confidence in EV adoption low amid economic fears: KPMG

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A NYC charging station found in the Yorkville neighborhood of New York City.

Adam Jeffery | CNBC

DETROIT – Global auto executives are less optimistic about adoption rates Electric vehicles than a year ago Amid supply chain issues and growing economic worries, according to a survey released Tuesday.

More than 900 vehicle executives participated in it KPMG’s annual Global Auto Survey, the international consulting and accounting firm reports that 76% are worried that inflation and high interest rates will adversely affect their business next year. In the US alone, the figure was 84%.

Amid those concerns, KPMG reports that automotive executives are less optimistic about the spread of all-electric vehicles in the U.S. and globally by 2030. Estimates of new vehicles sold as EVs worldwide by then have fallen between 10% and 40% in this year’s survey. 20% to 70% a year ago.

For the U.S., the average expectation for EV sales was 35% of the new vehicle market — down from 65% a year ago and down significantly from the Biden administration’s goal of 50% by 2030. It was announced at the end of last year.

“There’s still a sense of long-term optimism, and still, more importantly, more importantly, a sense of near-realism. You see this realism throughout the entire survey,” Gary Silberg, global head of automotive at KPMG, told CNBC.

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Confidence in EV adoption is waning Strict requirements For federal incentives for vehicles; Concerns about raw materials for batteries are growing; and registration vehicle price. Such concerns are in addition to other supply chain issues and recession fears.

“You can be optimistic long-term, but soon, you have to be very realistic,” Silberg said. “It’s not rainbows and butterflies and euphoria anymore, it’s sports.”

Tesla vs. Apple?

Executives who participated in the survey expect Tesla To be the global leader in EVs, but with a very narrow lead.

Perhaps most surprisingly, executives also said they believed in the technology company AppleOne of the market leaders in EVs, which has been rumored to be developing a vehicle for years.

Apple received 133 votes in the EV leadership survey. It was the fourth most votes behind Tesla (223 votes), Audi (206) and BMW (196). Apple had 91 votes a year ago, although the company has not publicly confirmed plans for a vehicle.

Silberg said the sentiment around Apple is based on its brand, experience in mass production and Foxconn, which currently makes its iPhones. The contract manufacturer has recently entered the automotive sector Building an electric pickup in OhioExecutives reveal plans for further growth in the segment.

After Apple, the top 10 brands include Ford, Honda, BYD, Hyundai-Kia, Mercedes-Benz and Toyota. An unexpected omission General Motors. Not one of the automaker’s brands made the top 12. Although the automaker has one goal in mind, investing billions of dollars in technologies EVs may be sold exclusively by 2035.

KPMG left the term “leadership” open to interpretation by respondents.

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Depression fears

KPMG did not use the term recession in its published findings, but Silberg said it reflected economic concerns about inflation and high interest rates.

Such fears are compounded by persistent supply chain issues for automakers — from EV raw materials to semiconductor chips. In a separate study covering semiconductors, automotive is seen as the most important sector to drive revenue in the next year. KPMG predicts that automotive semiconductor revenue will exceed $250 billion by 2040, the first time in the survey’s 18 years.

Despite the concerns, 83% of automotive executives surveyed globally said they were “confident” of higher profits over the next five years – up from 53% in last year’s results.

In the US, 82% of executives said they were “confident” in profitable growth over the next five years, compared to 67% in 2021.

KPMG surveyed 915 executives in October. More than 200 respondents were CEOs and 209 were other C-level executives. More than 300 respondents were from North America, including 252 from the United States

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