Report Notes That Chinese EV Sales Could Boost Com
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Posted On: 05/27/2021 5:21:53 PM
Report Notes That Chinese EV Sales Could Boost Commodities Market
Analyst firm CRU recently released an electric vehicle (“EV”) report which highlights that China, currently the leader in the sale of new energy vehicles internationally, is expected to venture into Western markets while maintaining its market position, which makes up half of all expected global new energy vehicles, in the next 10 years.
CRU, which conducts independent market analyses of various commodities and is based in London, also noted in its report that local sales would be boosted by consumer demand as the availability of high-quality models grew and new energy vehicle (“NEV”) prices continued to decrease. However, sales would primarily be driven by government policies.
The report stated that the Chinese government had revealed its plans to increase NEV sales to 20% by 2025 before moving to 50% by 2035.
The document also notes that the Asian giant may begin to target international buyers in the near future given that government subsidies to the automotive industry have begun decreasing and the country already has an advantage over the West, with regard to manufacturing scale.
In addition, the report explains that while it is practical, exporting electric vehicles may be challenging for Chinese manufacturers because there are no widely accepted Chinese car brands in the United States and Europe. Additionally, conventional fossil-fuel automotive sales in the U.S. and Europe are higher for other brands, in comparison with Chinese brands.
However, the study goes on to report that if electric vehicles produced in China were marketed appropriately, became widely available and were price competitive, they could easily become globally popular in the next decade.
The report gives the example of Japanese vehicles, which weren’t very popular outside of Japan until the late ‘60s. However, this changed after the Toyota Corolla was launched, propelling Toyota into the international powerhouse it is today in the automotive industry.
Some steps have been taken by Dacia and Tesla to manufacture affordable low-range electric vehicles in China, which are then marketed overseas.
CRU argues that the global new energy vehicle landscape may undergo an important transformation, if one or a few EV manufacturers in China are successful in increasing the production of affordable vehicles that are accepted by European markets.
It also states that product demand may be affected greatly if electric vehicle manufacturers in China successfully market their commodities overseas, adding that as new energy vehicles occupy a bigger share of international automotive sales, the demand shift of crucial automotive materials such as copper, aluminum and steel will be boosted.
As the demand for those automotive materials rises, mineral producers such as Excellon Resources Inc. (TSX: EXN) (NYSE American: EXN) (FSE: E4X2) are likely to deliver greater shareholder value in the coming years and even decades.
NOTE TO INVESTORS: The latest news and updates relating to Excellon Resources Inc. (TSX: EXN) (NYSE American: EXN) (FSE: E4X2) are available in the company’s newsroom at https://ibn.fm/EXN
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Analyst firm CRU recently released an electric vehicle (“EV”) report which highlights that China, currently the leader in the sale of new energy vehicles internationally, is expected to venture into Western markets while maintaining its market position, which makes up half of all expected global new energy vehicles, in the next 10 years.
CRU, which conducts independent market analyses of various commodities and is based in London, also noted in its report that local sales would be boosted by consumer demand as the availability of high-quality models grew and new energy vehicle (“NEV”) prices continued to decrease. However, sales would primarily be driven by government policies.
The report stated that the Chinese government had revealed its plans to increase NEV sales to 20% by 2025 before moving to 50% by 2035.
The document also notes that the Asian giant may begin to target international buyers in the near future given that government subsidies to the automotive industry have begun decreasing and the country already has an advantage over the West, with regard to manufacturing scale.
In addition, the report explains that while it is practical, exporting electric vehicles may be challenging for Chinese manufacturers because there are no widely accepted Chinese car brands in the United States and Europe. Additionally, conventional fossil-fuel automotive sales in the U.S. and Europe are higher for other brands, in comparison with Chinese brands.
However, the study goes on to report that if electric vehicles produced in China were marketed appropriately, became widely available and were price competitive, they could easily become globally popular in the next decade.
The report gives the example of Japanese vehicles, which weren’t very popular outside of Japan until the late ‘60s. However, this changed after the Toyota Corolla was launched, propelling Toyota into the international powerhouse it is today in the automotive industry.
Some steps have been taken by Dacia and Tesla to manufacture affordable low-range electric vehicles in China, which are then marketed overseas.
CRU argues that the global new energy vehicle landscape may undergo an important transformation, if one or a few EV manufacturers in China are successful in increasing the production of affordable vehicles that are accepted by European markets.
It also states that product demand may be affected greatly if electric vehicle manufacturers in China successfully market their commodities overseas, adding that as new energy vehicles occupy a bigger share of international automotive sales, the demand shift of crucial automotive materials such as copper, aluminum and steel will be boosted.
As the demand for those automotive materials rises, mineral producers such as Excellon Resources Inc. (TSX: EXN) (NYSE American: EXN) (FSE: E4X2) are likely to deliver greater shareholder value in the coming years and even decades.
NOTE TO INVESTORS: The latest news and updates relating to Excellon Resources Inc. (TSX: EXN) (NYSE American: EXN) (FSE: E4X2) are available in the company’s newsroom at https://ibn.fm/EXN
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
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