Automakers take on Tesla
January 6, 2022 - Demand for electric vehicles is pushing the biggest car companies in the world to spend billions introducing EVs in a bid to catch up with pioneer and pacesetter, Tesla.
Auto giants General Motors, Ford, Volkswagen and Toyota are among those aiming to preserve their claim on an industry they’ve dominated for decades. New EVs are attracting so-called “conquest sales” to customers who are not current owners of their brands for these automakers.
According to data from the automotive website Edmunds.com, almost 70 per cent of buyers of the new Ford Mustang Mach-E were not already Ford customers. Sixty per cent of buyers of General Motors’ Chevrolet Bolt were new to the brand.
VW’s Chief Executive Officer Herbert Diess announced massive budgets for electrification on December 9, allocating €89 billion ($100 billion) to EV and software development over the next five years. VW’s ID.3 and ID.4 architecture will underpin a total of 27 EVs by the end of 2022.
Toyota’s president Akio Toyoda has also unveiled eye-watering electrification budgets -- eight trillion yen ($70 billion) by the end of the decade. Half will go to fully electric models, said Toyoda at a November press conference. Toyota has only released one battery EV so far, the Lexus UX300e.
“Heading into uncertainty, what we need are diverse solutions,” the grandson of Toyota’s founder said, announcing plans to roll out 30 EVs by the end of the decade.
Brokerage Wedbush expects the share price of Tesla to rise by 30 per cent in 2022, predicting the EV market could be worth $5 trillion over the next decade.