Automakers will rev up electric vehicle output

Significance

This is pushing up prices, and accelerating changes in product lines, corporate structures and supply chains. Meanwhile, major vehicle and parts manufacturers are investing heavily in new product and process development to focus on electric vehicles (EVs) and meet targets for future carbon emission reductions.

Impacts

• Parts shortages and higher costs are prompting automakers to prioritise higher-margin models in order to capitalise on pricing leverage.
• The demise of traditional auto manufacturing will threaten jobs, lead to factory closures and make EV output a polarising political issue.
• US-China tensions will plague EV output: China has 25 times more large battery manufacturing plants than the United States.
• As demand for low-skilled roles falls and demand for high-skilled roles such as automation specialists rises, re-skilling will be key.