Electric Vehicles: Charging Up The Automotive Industry

Electric vehicles and other factors are transforming the auto market. Locations are touting supply chain, ready workforce, and more.

By Nora Caley
From the May / June 2023 Issue

 

The automotive industry is adapting to consumer tastes. Vehicle buyers seek electric vehicles (EVs) for the environmental benefits and tech-filled amenities, and manufacturers view the segment as a source of manufacturing resurgence. Automotive companies are looking to build or expand their manufacturing plants to satisfy demand, and they need skilled workers and suitable locations.

According to the National Automobile Dealers Association (NADA), in 2022 U.S. sales of new light-vehicle sales reached 13.7 million units, a decrease of 8.2% compared to 2021. The decrease was primarily attributed to the ongoing semiconductor microchip shortage and additional supply chain disruptions. NADA also reported that alternative fuel vehicles gained market share, as sales of hybrids, plug-in hybrids, and battery electric vehicles accounted for 12.3% of new vehicles sold. That was an increase of 2.7% compared to 2021.

Electric Vehicles Automotive Industry
According to the National Automobile Dealers Association (NADA), alternative fuel vehicles (including EVs) accounted for 12.3% of new vehicles sold in the U.S. in 2022. (Photo: Adobe Stock / Romaset)

 

Electric vehicles are generating much excitement, as they boast environmental benefits and techie-pleasing gadgetry. McKinsey & Company reports that U.S. sales of electric vehicles have climbed by more than 40% a year since 2016. The firm reports that by 2035, the largest automotive markets will be fully electric.

Whether it’s for EVs or for other vehicles that people utilize for commuting or recreation, the increased interest in new vehicles is driving demand for state-of-the-art manufacturing facilities.

For many consumers, cost is a roadblock to EV adoption. A report from Deloitte noted that 52% of consumers said a lack of affordability is their top concern about buying an EV. Nearly 7 in 10 of those looking to purchase an EV in the U.S. expect to pay less than $50,000 for their next vehicle, despite sustained upward pressure on transaction prices.

Whether it’s for EVs or for other vehicles that people utilize for commuting or recreation, the increased interest in new vehicles is driving demand for state-of-the-art manufacturing facilities. Here are some locations that are successfully attracting automotive manufacturing companies.

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