Electric vehicle (EV) collaborations between global automotive manufacturers have started to gather pace. Research from Cornwall Insight shows a steady growth in such ventures since last December, with eight of the 13 major car manufacturers having either engaged or attempted to arrange a joint venture.
“The scale of collaboration between major automakers is unprecedented, indicating that consumer demand and regulation are placing a considerable amount of pressure on firms to develop electric transport,” said Tom Lusher, Cornwall Insight Analyst. “These partnerships have ramped-up over the past few months due to the pressure automakers are under to reduce the emissions of their vehicles. To achieve their lower emission targets, EVs will need to be produced at scale. The alliances allow higher volumes of capital to be invested to help them obtain the necessary economies of scale to make the cost of EVs more attractive to customers.”
The joint project are predominately concentrated on R&D and the manufacturing of EVs. This is likely to see the supply of EVs to international markets begin to pick up in the early 2020s.
The Society of Motor Manufacturers & Traders (SMMT) last week issued figures showing an upturn in EV sales, away from hybrid vehicles.
“The new figures mean that PHEVs (hybrid) are dying already and the real shift to BEVs (battery electric vehicles) has begun. This is true across Europe and the US already where BEVs outsell PHEVs 3:1, but it’s the first time we’ve seen it here. said Julian Skidmore, Senior Software Engineer at ByteSnap Design.
“For the electronics industry, the news means that R&D for electronic systems in ICE (internal combustion engine) transport will collapse (this is already happening), but that the electronics industry will have greater control over all aspects of transportation and connected systems, which in turn will create rapidly changing, emerging markets for decades,” added Skidmore.