CNEEC News

On the morning of January 16th Beijing time, Ford Motor Company plans to double its spending on electric vehicles, which is just the tip of the iceberg for global automakers to invest heavily in batteries and electric vehicles. According to Reuters analysis, this number has reached $90 billion and is still growing.

Among the total annual sales of 90 million cars worldwide, electric vehicles account for less than 1%, while Tesla, as the leader in this field, currently only sells three models, with only 100000 vehicles sold in 2017.

With top global automakers planning to launch dozens of new battery electric and hybrid models over the next five years, many of which are Chinese manufacturers, industry executives have raised a question: Who will buy these cars?

We are fully betting, "said Bill Ford Jr., Ford's executive chairman, when he mentioned the company's total investment of $11 billion at the North American International Auto Show last Sunday." The only question is, are our customers on our side? "The outbreak is imminent: global car companies are investing at least $90 billion in electric vehicles

"Tesla is facing real competition," said Mike Jackson, CEO of Autonation, the largest auto retail chain in the United States. Jackson predicts that by 2030, electric vehicles will account for 15% to 20% of new car sales in the United States.

Of the announced investments in electric vehicles so far, at least $19 billion has come from American manufacturers, $21 billion from China, and $52 billion from Germany.

But American and German automotive industry executives said in an interview during the North American International Auto Show that many of these investments are aimed at China, and the local government has decided to gradually increase the quota for electric vehicles starting from 2019.

The reason why mainstream car companies have taken these measures is partly due to pressure from European and California regulators to reduce fossil fuel carbon emissions. In addition, Tesla's development of electric sedans and SUVs has attracted potential buyers to rush to pre purchase and also put pressure on them.

Daimler CEO Dieter Zetsche said at the North American International Auto Show on Monday that although Tesla is the most prominent electric vehicle manufacturer today, "he will soon become an ordinary manufacturer

Daimler has stated that it will invest at least $11.7 billion to launch 10 pure electric and 40 hybrid models, and intends to achieve electrification of all models, including compact commuters and heavy-duty trucks.

We want to see if market demand can drive our electric vehicle sales and see if we can catch the last customer, "Cai Che said." Ultimately, it's up to the customer to decide

The Nissan Leaf, which has been on the market for 7 years, remains the world's best-selling electric vehicle and the company's only pure battery car - but soon many new competitors will emerge, bringing you more severe competition and putting greater pressure on prices.　　

Everyone will find that if you work hard, there will be a lot of bad news in terms of residual value, "Nissan Chief Performance Officer Jose Munoz told Reuters.

Jim Lentz, CEO of Toyota's North American business, stated that it took Toyota 18 years to sell hybrid models before finally reaching an overall market share of 3%. Hybrid models have lower costs, do not require new charging facilities, and do not face the same range limitations as pure electric vehicles.

When will electric vehicles reach a 4% to 5% share? "Lenz said," It will take a long time

The largest investment plan for electric vehicles so far comes from Volkswagen, which plans to spend $40 billion by 2030 to develop electric versions for over 300 models worldwide.

In the United States, General Motors has also revealed that it will launch 20 new battery and fuel cell electric vehicles before 2023, most of which are based on new specialized modular platforms and will be launched in 2021.

General Motors CEO Mary Barra has not yet disclosed how much capital the company will invest in the electric vehicle sector. But Johan de Nyschen, President of the Cadillac brand under the company, said that most of the investment will go to China, where Cadillac will help General Motors explore more aggressive electric vehicle development strategies.

De Nichen stated in an interview on Monday that Cadillac will "play a core role" in General Motors' electric vehicle strategy in China and will launch multiple models based on General Motors' future electric vehicle platform, but he did not disclose the specific number. Some of the Cadillac models will be assembled in China.

Chinese automakers, including local partners such as Ford, Volkswagen, and General Motors, have announced aggressive investment plans.

But not all multinational car manufacturers will aggressively enter the electric vehicle market.

Fiat Chrysler CEO Sergio Marchionne stated at the North American International Auto Show on Monday that announcing the specific number of new electric vehicles is meaningless - he believes that the company is not under pressure, but will indeed strive to meet emission standards.

No one pointed a gun at our head, "Marchionne said. He stated that electric vehicles may become mandatory models in Europe due to emission regulations.