The vehicle industries have experienced significant changes that have revolutionized the industry. Likewise, the changes range from manufacturing modern cars based on luxury and comfort to fuel conservative vehicles on a standard level. Since the world is shifting from fossil fuel to clean energy, the industry was compelled to adapt to the demands of the consumer that seeks to preserve the environment by using clean energy. Therefore, the automotive sector manufactured electric cars that run on electricity stored in batteries. Several car companies in the past decade have produced Electric Vehicles (EV) that have proved to be beneficial to the economy and environmental conservation.
However, the globe has encountered yet another challenge from the COVID-19 pandemic that has orchestrated the collapse of the global economy. For example, several countries have been placed under lockdown to minimize the spread of the virus to different places. The countries affected include China, Italy, the US, Japan, Korea, and African countries like South Africa. Thus, many states have shut down their activities and industries, making the world economic crash.
Additionally, China, as an outsourcing country for diverse states, has experienced the highest cases of coronavirus, and most of its companies underwent closure to reduce its spread. Therefore, the nations’ outsourcing services from China have experienced a slower production rate hence lower sales. Consequently, COVID-19 has disrupted the supply of electric vehicle’s raw materials like graphite, praseodymium, lithium, and nickel.
Despite global economic crush, EV sales have surprisingly rose during the pandemic. For example, according to statistical analysis, the EV sales globally had increased by 16 percent in February this year compared to February last year. Furthermore, China is the most affected country, has tabulated a 65 percent increase in EV sales. Resultantly, Europe has recorded the highest growth in sales of 111 percent in February.
As stated above, China serves as an outsourcing company for several companies. Likewise, 50 percent of the supply of EV originates from China. However, the country’s lockdown has seen many of EV manufacturing companies close down. Researchers predict that the lockdown is likely to affect the sales in March and April. Also, some other car manufacturing companies like Tesla and Volkswagen have shut down their factories to minimize the spread of coronavirus.
On the brighter side, the cases of coronavirus in China have begun to decrease, and hopefully, many companies will soon continue with production. Likewise, other companies still operate but isolating its employees as the work is in progress.