Electric Car Sales are Skyrocketing, but There is No Production Capacity for All

For too many years, electric cars have been seen as a must-have advertising complement for traditional brands. Something that has caused the development of dedicated platforms to be left for the last moment. Now with the coronavirus ​​crisis and the increase in interest in new forms of mobility, brands are in a very complicated situation of falling sales of diesel and gasoline, the unstoppable rise in demand for electricity, and the lack of production capacity of the latter.

One of the examples of this misguided conservative policy is found in brands like Volkswagen. The German manufacturer opted for the electric car at the hand of its Golf and Up’s simple conversions. Something that allows you to get out of trouble quickly but with an enormous cost in the medium and long term since its production is costly due to its low volume, and the complication of adapting an electrical system in a vehicle not designed for it. Something to which is added to the enormous difficulty of expanding its production in lines must be shared with other conventional models.

Then came the coronavirus and aid programs, and everything changed. The consumers began to reduce their purchases of conventional cars drastically. A situation that has exploded in manufacturers poorly prepared for such a rapid change with foreseeable consequences—lack of stock.

The examples affect almost all the goods. Audi and Mercedes have had to lower their production expectations last year due to a lack of foresight when buying batteries. In markets like Germany, the KIA e-Niro has delivery times of one year for a new order. Less if we are lucky enough to find a dealer unit.

An example of the fact that the structures of the large groups are far from having adapted to new times that, unfortunately, has been advanced a few years due to the impact of the pandemic and the desperate search for the primary markets to position themselves as a power future producing this type of vehicle and its main components, such as batteries.

Of course, we can not forget another of the winner: Tesla. The American manufacturer is taking advantage of the situation to continue expanding. Something that will undoubtedly have a substantial impact on an industry that remains in shock, with expansion plans for years to come and the risk of the new emission regulations that have come into force this year.

And in the background, another threat with the expansion of Chinese manufacturers of electric cars that are achieving an exponential evolution in quality and equipment, accompanied by increasingly competitive prices that in 2021 will become a real alternative in our market.

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