Sunday, November 17

Electric car manufacturers bet billions that it will be the global preference in the medium term

Klon Perez

By: Klon Perez Updated 12 May 2022, 03: 30 pm EDT

The large investments made by vehicle companies in the last decade for the manufacture of electric cars leads us to think that in the not too distant future, this will be the only way we can have one. In fact, the laws are stricter every day in the world when it comes to reducing the greenhouse effect.

In recent weeks there have been a series of announcements that clearly demonstrate that the transition to electric vehicles will be even faster than expected. that we come to think

For example, Volkswagen took a giant step in Europe by announcing that it will spend a billion euros (about $1,100 million dollars) to build the ID.4 99 % electricity in its Emden, Germany plant. Also, together with Seat, the German brand will launch a plan of $ 000,732 million dollars to improve manufacturing plants in Spain.

Auto eléctrico
The cars electric every day gain more weight in the market.

Hyundai was another of the brands that made big announcements in recent days. Coinciding with President Joe Biden’s trip to that nation, the South Korean brand announced the construction of its first dedicated plant 100 % to the manufacture of electric cars.

Within the framework of these plans, Hyundai will invest $5.5 billion dollars to be able to build some 300,000 electric cars when the plant is fully operational for 2025. Construction will start from 2025.

Another company that has promoted the construction of electric cars in the US and is even looking to expand into new markets is Lucid Group. A few days ago he announced the construction of a new plant dedicated to manufacturing cars 100 % electric, the first outside the US, in Saudi Arabia.

In this new plant they hope to produce 150,000 cars per year when it starts operating in the middle of the decade . The Saudi government has had an important participation in this investment by offering financing for $ 3.4 billion dollars thinking about what will be the next 15 years.

Tablero de auto eléctrico
The futuristic dashboards of electric cars incorporate many functions.

An important aspect to take into account is that due to the scarcity of supplies, the high demand and the large investments In these new electric car manufacturing plants, it is very likely that prices in the market will increase significantly.

For example, a report by CNBC indicated in a recent article that they had increased by 20 % the prices of electric cars of the Tesla and Rivian brands. For its part, Lucid has raised prices by an average of 10% and Cadillac 5%.

The great unknown for the coming years will be if by solving the problems in the production and supply chains, added to the competitiveness of the offer, it can reduce the prices of electric cars.

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