Around 31 countries have reached the tipping point concerning EV adoption. At the same time, Tesla and its Chinese competitors are announcing and executing plans for too taxi and self-driven cars. Even Mercedes Benz has launched a feature where driving becomes semi-automatic. To bring more wild adventures to the industry a Chinese company is midst of launching a car that can even fly at a commercial level.
All the rapid developments indicate that the current decade will be a dynamic one for the automotive industry. And at the end of it all the landscape might look very different from where it stands today.
But as with all revolutions, it will be coming at a price. For now, those costs can be only estimated but given the recent news of Tesla cutting 10% of its workforce along with price cuts. This makes sure that costs will be higher than present estimates.
Given that the automotive industry is one of the biggest contributors to manufacturing GDP globally. Change in industry would certainly lead to change in countries future growth in manufacturing.
At present China dominates the production and supply of EV and related raw materials. Though investments are being announced in non-China regions those factories coming online and supplying will happen over time. Will this meanwhile cause the conventional car industry to decline in growth before the EV industry replaces it?