BYD North American VP talking about mega trend in Electric vehicles.
I was on a concall with a US based solar company yesterday. The CEO said that there is severe shortage of certain electronic components used by the solar industry. The reason he says is - There are large requirements from EV charging industry which uses the same components. And he says his company’s output is sold out for the quarter.
The take away is - EVs may get in the world faster than expected and so is solar power…Interesting times. I am curious to know how the stocks of ICE auto cos like Maruti shall perform going forward.
Mahindra and now Tata Motors have their EVs on road whereas Maruti doesn’t. Any path breaking disruption typically replaces market leader.
Actually it depends. I personally don’t call EVs a disruption but an evolution, had a post somewhere on the forum on this. Also I doubt Maruti will be asleep at the steering wheel.
Anyways, Maruti already has been fleet testing their mass market cars for electric versions. They are working on vertical integration from a battery perspective whereas an M&M will not be so much.
Headout to teambhp and you can see the discussion there.
p.s. all pic credits to teambhp forums
And they (suzuki) have plans to setup their own EV battery factory too.
Maruti’s strength is distribution and trust that they have built over past few decades. This is their moat and not their technology. Even now their bestseller engine has been the Fiat-sourced 1.3 MJD which does service in Swift/Ritz/Ciaz/Brezza, so much so that many people consider it the national engine. So we can’t write-off Maruti that easily, especially when the competition is Tata and M&M (People simply don’t trust their vehicles or service network). As @deevee pointed out, Maruti is not asleep at the wheel.
Maruti could lead in passenger segment but I feel real push atleast in the start would come from low hanging fruit like erickshaw, buses and trucks…passenger cars may come later…figure out key auto players in bus segment who could benefit from ev push…
“The more we learned, the more excited we got about #electric” - John Olin, CFO at @harleydavidson on the launch of their first commercial e-bike, coming mid-2019. “We can take out the combustion engine and make it much cleaner & sleeker” #battery
#BYD is happy to announce the completion of our new $5 million warehouse, the 4th expansion of our manufacturing plant in Los Angeles County, California.
“We have the capacity to produce up to 1,500 battery-electric buses a year” - @BobbyHillBYD
Ev is getting bigger and better with China and US leading the space.
Maruti - it is not about Maruti not selling EVs. It is all about profitability going into the future. Now, EVs will have less than 20 moving parts vs an ICE vehicle having 2000 moving parts. So, a well made EV has no need for a service station for years. The issue with Maruti is exactly its huge network. Which will be of little use if someone wants to buy an EV. In an EV world, one cannot advertise that there is a maruti station anywhere in India. Infact, running a station when not many cars will show up for service will be a big economical issue for Maruti.
And Maruti is not an EV leader unlike all other majors who have poured Billions into EV research. And there is only one issue for a new EV manufacturer. Which is to make and sell a good EV. For Maruti, M&M and Tatas - the problem is two fold. In addition to make and sell a good EV, they need to also maintain their existing ICE assets which could become commercially unviable with lower volumes.
If Volkswagen acquires some EV marketshare, Motherson Sumi might benefit.
Components for EV cars… Just because Motherson gets a supply contract to sell components to EV cars, does not mean it will be as profitable as current… The bargaining power of end individual users and car oems will be very high… If the oem decides to lose money for market share they will squeeze their suppliers too…