Unbalanced Demand, Many Automotive Manufacturers Reduce Electric Vehicle Production Plans

Illustration of the car assembly stage using robotic technology. (Unsplash-Lenny Kuhne)

JAKARTA - With billions of dollars already disbursed for projected electric vehicles, many automotive manufacturers are reducing plans to increase production.

Citing the Carcroops page, Sunday, November 5, experts fear demand for electric vehicles is not in line with the amount of investment disbursed by car manufacturers.

Although sales of battery-powered vehicles continue to increase, the billions of dollars that have been disbursed by nearly all major manufacturers make it possible not to provide the expected results.

Several well-known manufacturers have scrapped plans ahead, for example Tesla, which has announced that it will slow down plans for factory construction in Mexico. Tesla CEO Elon Musk said the current financial climate is a strong reason.

"This also happens because the interest rate is high, because most people who buy electric cars will think about monthly expenses," said Elon Musk.

Tak hanya Tesla, Honda dan General Motors telah membatalkan pengembangan bersama dengan angka yang fantastic, guna menciptakan SUV listrik dengan terjangkau.

Meanwhile Ford recently announced that production of the F-150 Lightning will be temporarily slowed down. Blue Oval will shift investment into commercial and hybrid vehicles.

According to him, demand from automakers has caused raw material prices, which are used in electric vehicle manufacturing to drop sharply. According to reports from Reuters, the price of lithium has fallen by 67 percent, while cobalt has fallen 20 percent by 2023, and has fallen halfway since May 2022.

A battery manufacturer from China, CATL, recorded the third-quarter demand for the weakest so far this year, citing declining demand and increasing competition.