Herewith select bullet points from MM Markets automotive research:
- Once settled, US tariffs will impact world OEMs pricing and supply strategy. Mexico provides key components, such as wire harnesses, and manufactures many vehicles for leading brands.
- Partnerships between West and East might actually increase as price becomes a key focus. Designed in the West and made in the East has been a trend for many years however Asia is also now improving its technologies.
- Increasingly stringent emissions regulations will complicate strategic planning. OEMs are waiting to see how regulations will change and develop in an regionally competitive business environment.
- Hybrid and petrol vehicle sales appear to be supporting EV sales development, affordability and range anxiety seem to persist. The investment dynamic between number of EVs on the road and charger availability remains.
- In the current financial environment vehicles sales might be relatively slow growth and finding new markets/sales will be key to future stability.
- Material prices might not be impacted much by OEM activity, demand in other sectors such as the energy transition continue to underpin a steady price outlook for most.
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