According to experts, the Russian war in Ukraine will make electric cars more expensive – and thus put a brake on the current changes in the industry. The main reason is the rise in the price of nickel, says industry analyst Pedro Pacheco of IT market researcher Gartner at the German news agency. Russia is a major source of the metal, which plays an important role in most electric vehicle batteries.
The production of cars with internal combustion engines will also be affected: for many European manufacturers in particular, Ukraine was previously a supplier of wiring harnesses – and Russia a supplier of palladium for catalytic converters.
War in Ukraine worsens semiconductor crisis
The expensive nickel “threatens the proliferation of electric cars” — just as the current rise in fuel prices is fueling interest in alternative powertrains, Pacheco said. The consequences should be felt not only this year, but also next year: “2022 and 2023 will be very different from what it looked like at the beginning of the year.” continue to deteriorate – because Ukraine is a major gas supplier neon, which is used in the production of semiconductors.
Customers also pay for combustion engines
Due to the semiconductor problems, the automakers have come off relatively lightly financially as they have sold more expensive vehicles, Pacheco said. “But the problem is, the space for this is shrinking this year because ultimately it’s about how willing customers are to pay more.” without accepting losses, especially in electric cars. “And that will definitely affect the adoption of electric vehicles.” The mid-price segment of combustion engines in particular could contract sharply. The useful life of vehicles can be further extended.
Via template for China
At the same time, the Gartner analyst does not rule out the possibility that Chinese automakers could try to use access to Russian raw materials, which are cheaper for them, to expand their position both in Russia and in the global market in the event of a protracted conflict. .
In the face of potentially declining car sales, it is now even more important for manufacturers to expand their digital services business. “Because if you can’t sell cars, eventually you have to sell something else.” Pacheco also expects new mergers and acquisitions in the industry as a result of the development.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
