Summary
- CleanTechnica offers daily news updates via email or Google News
- EV sales are growing, leading to better economies of scale and lower prices
- Plug-in hybrids (PHEVs) are considered EVs but still have internal combustion engines
- Global sales of ICEVs are declining while EV sales are increasing
- Legacy auto companies are facing challenges from Chinese OEMs and may not survive in the long term.
Article
The article discusses the current state of the internal combustion engine (ICE) and its future in the automotive industry amidst the rise of electric vehicles (EVs). The author argues that while the global peak ICE vehicle (ICEV) fleet may have already been reached, the internal combustion engine itself is still going strong. As EV sales increase, economies of scale improve, leading to lower prices, while the opposite effect occurs for ICE vehicles.
The focus shifts to plug-in hybrids (PHEVs) as a significant contributor to the decline in ICEV sales. Despite being classified as EVs, PHEVs still contain an internal combustion engine, leading to a paradoxical situation where the number of vehicles with ICEs is actually increasing. The data suggests that while EV sales are on the rise, ICEV sales are declining, indicating a shift in the market dynamics towards electric vehicles.
The article highlights the continued resilience of the internal combustion engine, particularly in the face of growing PHEV sales. The author predicts that as China perfects the manufacturing of affordable, long-range EREVs (PHEVs without a direct link between the ICE and the wheels), the share of vehicles with internal combustion engines may continue to grow. This challenges the notion that lower sales would lead to higher prices for ICE vehicles in the medium term.
Legacy automakers are facing increasing competition from Chinese companies that are dominating the EV market. While total vehicle sales show a decline for top global OEMs, Chinese manufacturers are gaining ground with compelling and affordable EV options. This shift in the automotive landscape could lead to further challenges for legacy auto companies, with possible declines in sales and market share in the coming years.
The article concludes by discussing the evolving landscape of the automotive industry, with legacy automakers facing pressure from Chinese OEMs in the EV market. While some traditional automakers may struggle to adapt, there is potential for alliances with battery manufacturers to remain competitive. However, the author predicts that the transition to electric vehicles may lead to the demise of some large legacy auto companies, with Chinese OEMs potentially acquiring or outcompeting them in the future.
Overall, the article paints a complex picture of the automotive industry, with the internal combustion engine facing challenges from the rise of electric vehicles. While the future of ICE vehicles remains uncertain, the growth of EVs, particularly PHEVs, is changing the dynamics of the market and posing challenges for legacy automakers. The shift towards electric mobility is reshaping the industry, with Chinese companies leading the way in innovation and market dominance.
Read the full article here
