The threat of US tariffs has disrupted supply chains for car manufacturers while regulatory uncertainty over emissions fines poses other challenges. Which companies are in pole position to benefit? Lisa Lange, Justin Bazalgette and Shoa Hirosato assess a market in flux.
The electrification of private transportation represents one of the biggest shifts in the history of motoring, but with some car manufacturers lobbying for more time to phase out their internal combustion engine (ICE) models, the adoption of electric vehicles (EVs) has seen several false dawns. Where governments have provided the right incentives and rolled out charging infrastructure at pace – as in Norway – EV take up has been rapid and widespread.
However, outside certain niche markets there are still significant headwinds, particularly for legacy automakers. The threat of US tariffs and weaker ICE phase out regulations in key markets have introduced fresh uncertainty for manufacturers, providing a disincentive to launch new EV models.
Yet there is plenty to play for. The International Energy Agency (IEA) forecasts that sales of EVs will triple by 2030, with battery and hybrid models accounting for over 50% of cars sold globally. Which companies have the most robust strategies to capture these growth opportunities? One way for investors to assess how committed companies are to electrification is to look at how quickly they plan to cut fleet emissions.
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