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“Green” cars, increasingly bought in Europe, despite high prices. In Romania sales increased by 400%

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“Romania is following this European trend, with electric car sales rising by more than 400% in the first quarter, according to the European Automobile Manufacturers Association. The evolution of sales in Romania and Europe confirms the impact of government incentives and the strategic reorientation of manufacturers towards the manufacture of electric cars. However, supply chain disruptions will continue to cause them problems. In addition to the shortage of semiconductors, manufacturers are now facing a blockage in the supply of metals used in the manufacture of batteries for electric vehicles – lithium, nickel and cobalt. These difficulties were largely caused by the global increase in demand for BEV and exacerbated by the Russian war in Ukraine, as well as the Covid lockdown in China, “said Daniel Anghel, Partner and Leader for the Automotive Industry at PwC Romania.

For example, in 2021, Russia was the world’s third largest supplier of nickel. As a result of sanctions imposed on Russia, the price of nickel has skyrocketed four times in one week in early March 2022, according to the strategy & report. The inevitable chain effects can be seen in the price increases for certain VET models, which become inaccessible to certain customers and threaten the long-term growth of the market, the report notes. For example, Tesla increased the price of the base 3 model in Germany by 7,000 euros (16%).

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To gain more control over the supply chain and to bring more stability to long-term planning, automakers are partnering with commodity manufacturers and investing in battery-producing plants. General Motors and Tesla have announced such projects.

Consumers are especially focused on BEV cars. Companies are preparing huge investments in development and production

Growth in the first quarter was supported by BEV sales, which rose by 55% compared to the same period in 2021. In the same period, hybrid cars were only 7% ahead, while plug-ins fell by 8%. %.

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Much of the decline reported by the plug-in can be explained by the lack of product availability, with original equipment manufacturers prioritizing the production of BEVs, which enjoy increased customer demand and promise higher profitability. And this is reflected in the billion-euro investment plans announced by major carmakers. Renault, Nissan and Mitsubishi alone have announced a € 23 billion investment plan in BEV’s development.

Some companies, such as Ford and Renault, have even announced the creation of different entities for BEV, anticipating significant production increases by 2030.

Globally, in the first quarter of 2022, more than 1.4 million BEVs were sold, 108% more than sales in the same period last year. Much of this growth is attributed to China, which accounted for two-thirds of total sales. Sales in the United States also increased by 100%.

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