Car Manufacturers Turn to Electrification to Turn the Tide in 2019, with a 28% Growth in Electric Vehicles, Says TrendForce

TAIPEI, Taiwan–(BUSINESS WIRE)–lt;a href="https://twitter.com/hashtag/BEV?src=hash" target="_blank"gt;#BEVlt;/agt;–Global research institute TrendForce asserts
in its latest Global
Automotive Market Decode for 1Q
 report that the global
automotive market scale is predicted to reach 94.4 million in shipments
2019, a 0.8% decrease compared to 2018. Despite this drop in market
scale, car manufacturers are hoping to spur market development by
turning to the electric vehicle market. Electric vehicle shipments are
predicted to arrive at 5.15 million in 2019, reaching a YoY growth of
28%. YoY growth of new energy vehicles alone ( excluding hybrid electric
vehicles) is expected to hit 51%.

TrendForce Analyst Caroline Chen points out that the 2019 automotive
market was impacted by the US-China trade dispute, causing China and US
cars sales in the five major regional markets to slide non-stop. Western
Europe and Japan held steady and only experienced marginal drops, while
India continued to ride a still-strong wave of economic growth and
exhibited positive growth.

Further analysis by Caroline shows that negotiations are still underway
amidst the US-China trade dispute, and both sides have declared to lay
down punitive tariffs momentarily. Yet the longer the trade-dispute
drags on, the more the car market suffers in 2019, and the number of
countries impacted will continue to rise. The reason for this is the
close relationship between car sales and a country’s economy: If
consumers become pessimistic about future employment, salary growth and
total economy, then doubts and deferred consumption will follow upon
considering new car purchases and replacements.

Returning to global car market development: Car makers are proactively
carrying out development of electric vehicles and speeding up rollouts
of new car models in anticipation of global energy-saving and
emission-reducing trends, as well as the policies implemented by various
countries. Car makers are leaning towards presenting electric vehicles
as a brand new product series with a strategic eye to consolidate their
position in the electric vehicle market. Electric vehicle development is
further helped by the expansion of cell suppliers’ production capacity,
continually falling prices and localization of cell production .

Caroline explains that policies will play a major role in influencing
electric vehicles development this year. China and the US are both
hoping to push towards free market competition for electric vehicles,
and have begun to reduce subsidies and raise the bar. Though these acts
are sure to cause some disturbances in the car market, it will exert a
positive influence and help clear out the riffraff. Other indicators of
electric car development is the speed and scale at which charging
stations are distributed, grid load and power stability. In
consideration of all these factors, we at TrendForce predict that
electric vehicle penetration rates will arrive at 5.5% in 2019, and
continue to rise up to 13%~15% in 2023.

For further details of the press release, please visit:
https://press.trendforce.com/press/20190416-3231.html

For more information on the global car market and its development,
please refer to TrendForce’s newest Global Automotive Market
Decode
 
Report:
https://www.trendforce.com/Global-Automotive-Market-Decode

About TrendForce (www.trendforce.com)

TrendForce is a global provider of market intelligence on the technology
industries. Having served businesses for over a decade, the company has
built up a strong membership base of 500,000 subscribers residing the
technology and financial services sectors. TrendForce has established a
reputation as an organization that offers insightful and accurate
analysis of the technology industry through five major research
divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend and Topology
Research Institute. Founded in Taipei, Taiwan in 2000, TrendForce has
extended its presence in China since 2004 with offices in Shenzhen and
Beijing.

Contacts

Ms. Pinchun Chou
Tel: +886-2-8978-6488 ext.669
pinchunchou@TrendForce.com
or
Ms.
Lindsay Hou
Tel: +886-2-8978-6488 ext.667
Lindsayhou@TrendForce.com