Jose Munoz, Hyundai’s global chief operating officer, expressed optimism about battery electrics, emphasizing that Hyundai’s EV sales are doubling annually. Munoz disclosed accelerated investments in the battery electric plant in Savannah, Georgia, aiming for completion by October next year, underscoring a proactive approach.
Kia, with a 34% ownership by Hyundai, shares a positive outlook. Steven Center, chief operating officer at Kia America, noted ongoing organic growth despite economic challenges. Kia plans to expand into additional segments, expecting EVs to lead growth.
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Inflation and high interest rates have raised car-buying costs, and EV manufacturers face supply-chain challenges and pricing pressure from Tesla, which initiated EV price reductions this year. Despite average EV prices in the U.S. dropping from over $60,000 in January to just over $50,000 in September, EV sales in the third quarter reached a record of over 300,000 vehicles, a 50% increase from the previous year.
However, caution is observed in the industry, with Tesla’s Elon Musk expressing concerns about expanding factory capacity amid current interest rates. Other companies like Lucid, Fisker, and Polestar have adjusted their production and delivery forecasts.
Consumer insights indicate that about one in four Americans planning to buy a new car intend to choose an EV, yet industry experts suggest a potential decline in demand as early adopters diminish.
Amid uncertainties, Subaru’s CEO, Atsushi Osaki, expressed commitment to the EV market despite short-term uncertainties due to inflation. He believes that battery EVs could constitute half of Subaru’s sales by 2030, adapting flexibly to market dynamics.