New Energy Vehicles (NEV) have witnessed considerable traction with the soaring popularity of hybrid vehicles and pure electric vehicles. China has been the frontrunner in fostering the penetration of new energy vehicles. The China Association of Automobile Manufacturers (CAAM) claimed that China’s NEV sales were pegged at 950,000 units in the first five months of 2021. The watchdog also estimated the sales of NEVs to touch 3 million units in 2021.
The development of NEVs could notably impact a few traditional automotive companies, including traditional auto parts plants. Amidst soaring demand for Electric Vehicles (EVs), robust policy announcements could prove to be critical in triggering the electric mobility transition in the auto sector. The flourishing new energy vehicles sector in China is also mainly attributed to a surge in charging facilities. The China Electric Vehicle Charging Infrastructure Promotion Alliance claimed the country had around 2.61 million charging points by the end of 2021.
Business Research Insights estimates the market for new energy vehicles to reach USD 286,340 billion by 2027, growing at a CAGR of 16.8% during 2022-2027.
Automakers are poised to inject funds into plug-in hybrids and battery-electric cars to tap into global markets. Some of the leading companies redefining the global landscape are delineated below:
1. Tesla
Tesla is a U.S. manufacturer of electric automobiles, batteries, and solar panels and was founded in 2003. In 2012, Tesla built superchargers in the U.S. and Europe for charging batteries quickly and at no extra cost to Tesla owners. The company is focusing on more durable and longer-range battery cells. For instance, in October 2020, Tesla announced investing USD 12 billion in its new electric car and battery factories in two years.
2. BYD
Build Your Dreams (BYD) is a manufacturing company established in 1995 and headquartered in Shenzhen, Guangdong, China. The company specializes in automobiles, rechargeable batteries, solar panels, and battery-powered bicycles, among others. In April 2022, the Chinese EV maker suggested that it will only produce hybrid and electric cars and has stopped making combustion engine vehicles.
3. Toyota
Founded in 1937, Toyota is a Japan-based multinational automotive company headquartered in Aichi, Japan. The company specializes in manufacturing, designing, assembling, and selling passenger cars, trucks, minivans, and other vehicle accessories and parts. Prominently, in December 2021, Toyota announced infusing USD 35 billion to establish a line-up of 30 BEVs by 2030.
4. Renault
Renault is a global company with its headquarters in Boulogne-Billancourt, Île-de-France, France. The French automobile manufacturer was founded in 1899. In October 2021, Renault was reported to have contemplated moving its current headquarters to a nearby building to minimize fixed costs. The company has presence in more than 128 countries and has upped its organic and inorganic strategies. For instance, in January 2022, Renault collaborated with Nissan to inject USD 26 billion in EVs over the next half-a-decade.
5. Nissan
Founded in 1933, Nissan is a Japan-based company, which has presence in more than 191 countries. The Japanese company has set the ambitious goal of achieving carbon neutrality across its global operation by 2050. To illustrate, in February 2022, Nissan announced investing USD 500 million to transform the Canton assembly plant. The production of EV models is expected to begin in 2025.
6. BAIC
Headquartered in Beijing, China, BAIC is one of the largest automobile manufacturers founded in 1958. The company is a state-owned automobile enterprise manufacturing complete vehicles and auto components & parts, among others. BAIC was reported to have ranked 134th on the Fortune 500 list in 2020.
7. GM
General Motors (GM) is a U.S. multinational automotive company established in 1908. The U.S. company has positioned itself to produce, design, and engineer EVs to build a zero-emission future. GM claims to build a competitive edge in vehicle integration, software, batteries, and manufacturing. Specifically, in January 2022, GM asserted it would inject USD 6.6 billion to establish a new EV battery cell plant and boost electric pickup-truck production.
Technological Adoption Keeps New Energy Vehicles in the Driving Seat
The rising prominence of in-vehicle technologies, including the Internet of things (IoT) and autonomous driving has brought a paradigm shift in the automotive sector. New energy vehicles manufacturers envisage technological advancements as a competitive edge. NEV makers could prioritize futuristic and intelligent electric cars with advanced driving features, safety, and enhanced battery performance. Major companies could focus on a sustainable energy ecosystem to boost customer experience and expedite clean transport.