Automakers Announce Plans to Go All-Electric in 2021

Article By : Strategy Analytics

2021 has become the year when mainstream automakers solidified their intent to become "all-electric" and transition further towards electrification.

With Renault in June, Mercedes-Benz and Stellantis in July, to name a few, 2021 has become the year when mainstream automakers solidified their intent to become “all-electric” and transition further towards electrification. In its new report, Strategy Analytics expects there will be a step-change in the supply of batteries, electric motors, power electronics, and other components associated with electrified powertrains, especially battery electric.

“To secure component supply and leading-edge technologies, the mainstream automakers have recently partnered with battery cell vendors, electric motor developers and semiconductor vendors. As well as raising production capacity, automakers seek battery cells with more energy density and faster charging capability,” says Kevin Mak, principal analyst in the Global Automotive Practice (GAP). “The pace towards electrification has quickened because of tightening mandates (which could become even tighter following COP 26) and in their attempts to catch-up on Tesla. Some have resorted to the use of common platforms, from the likes of Foxconn and REE, to leverage the necessary economies of scale and ensure that their product offerings are affordable.”

Another result of this step-change in OEM strategy is that the demand for hybrid powertrains will become more temporary, tapering-off in the long-term, as countries and states (Chile, New York and Massachusetts are the latest proposing bans that come into effect in 2035) begin to impose a sales ban on new combustion engine-powered light vehicles. Demand for combustion engines could now peak in China, Europe and North America as soon as the mid-2020s timeframe as automakers prepare for an electric future.

 

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