As global concerns about climate change grow, governments are increasingly promoting the development of electric vehicles (EVs) and planning to phase out the production and sale of internal combustion engine (ICE) vehicles. This shift poses a long-term challenge to our business.
For some time, we’ve been closely monitoring how this evolving market would affect our industry, as well as the timelines for these changes. Now that electric and hybrid vehicles have been on the market for several years, the landscape has become clearer. As such, we’d like to provide you with an update on the latest developments and how they may impact our business moving forward.
Since the concerns of global warming, governments pussing the development of electric cars and want to ban the production and sales of cars with internal combustion engines which is damaging our businesses in the long term.
We have been cautious for a long time about how the market would develop and the timeline on which this would impact our industry. Now that electric and hybrid vehicles have been on the market for some time, a clearer picture has emerged, so we want to update you with the latest news about this subject.
Pure electric driving was until recently the holy goal of governments, environmental organizations, and the auto industry itself. But once subsidies are removed, sales of electric cars collapse like a house of cards. There’s even doubt whether the 2035 deadline to ban the sales of internal combustion engines can be met in the Netherlands. The same trends being seen in multiple European countries.
Electric vehicles (EVs), once heralded as the future of transportation, are facing significant challenges in Europe. Sales of EVs have dropped sharply as government subsidies are reduced, with many consumers reluctant to switch to electric cars. Major car manufacturers like Volkswagen, Toyota, and Ford are slowing down their electrification plans due to declining demand. And also manufacturers of batteries for electric cars like the factory in Northvolt Sweden are cutting jobs because of the disappointing demand for batteries.
This has raised concerns about the EU’s goal to sell only electric cars by 2035, with some experts doubting if it can be met. Additionally, battery manufacturers are calling for more financial incentives, and the second-hand market for EVs is struggling, particularly in Germany, where dealers are facing losses on used electric vehicles. The European Court of Auditors has also expressed doubts about the feasibility of the 2035 deadline, citing high costs of new EVs and inadequate charging infrastructure.
This makes that we became more optimistic about the future of our industry. It looks like the transition to Electric cars – especially in most parts of Europe – will take longer than previously anticipated!
Good news, not only for ourselves, but also for our passionate customers end their end users. We expect to be able to provide you with tuning files, at least for the upcoming 10 till 15 years!
Best Regards
Tuningbot.com