Today's top automotive news highlights : EV Sales, Stellantis Sales Decline, European EV Battle

 

EV Sales Surge to Record Highs in Q3 2024 Despite Market Doubts

Electric vehicle (EV) sales continue to defy expectations, reaching a new peak in the third quarter of 2024. According to recent data, EVs accounted for 8.9% of all vehicle sales in the U.S., a record high driven by consumer incentives and increased availability of affordable models. While the overall automotive market has shown signs of cooling, the EV sector is still growing, with approximately 346,000 units sold—a 5% increase from the previous quarter. Major automakers like GM saw their EV sales jump nearly 60%, largely due to the success of brands like Cadillac and Chevrolet. Tesla remains the dominant force in the EV space, driven by strong sales of its newly released Cybertruck.

For purchasing professionals, this sustained growth in EV sales highlights the importance of staying attuned to shifts in consumer demand and understanding how incentives can influence market behavior. As EV adoption increases, supply chain adjustments will be necessary to ensure the availability of key components like batteries and semiconductors.

Pro Tip: Keep track of how government incentives influence EV pricing to better position procurement strategies in both raw materials and finished components​.



Stellantis Faces Tough U.S. Market Amid Sales Decline

Stellantis, the global automotive giant behind brands like Chrysler, Jeep, and Ram, is grappling with challenges in the U.S. market. Despite its global success, the company has struggled to maintain competitive sales domestically. CEO Carlos Tavares is focusing on streamlining operations and boosting the brand's EV offerings to regain market share. However, competition from U.S. automakers, particularly GM and Ford, is proving tough as they continue to dominate in both conventional and electric vehicle segments.

This slowdown has implications for procurement teams working with Stellantis, as the company may tighten budgets and push for cost reductions from suppliers. Additionally, their pivot towards EVs could open new opportunities for suppliers specializing in electric drivetrains and battery components.

Pro Tip: If you are working with Stellantis or other OEMs facing similar challenges, consider preparing for negotiations around cost-cutting initiatives while also exploring partnership opportunities related to EV development​.



European EV Battle Heats Up as Chinese Automakers Enter the Scene

The Paris Motor Show 2024 underscored the growing competition between European and Chinese automakers, particularly in the electric vehicle segment. Chinese brands are rapidly expanding into Europe with competitively priced EVs, challenging established players like Stellantis and Renault. This influx of affordable, feature-packed models is intensifying the trade tensions between the EU and China. The growing Chinese presence is expected to pressure European automakers to innovate faster and lower production costs to stay competitive.

For supply chain and purchasing professionals, this trend indicates a shifting landscape in global automotive supply chains. European manufacturers will likely seek to optimize their operations and sourcing strategies to remain competitive against Chinese imports. This could lead to new sourcing opportunities in Asia or even reshoring initiatives within Europe.

Pro Tip: Keep an eye on international trade policies and the shifting competitive landscape in the EV market. These factors could open up new supplier opportunities or disrupt current contracts​.



These insights provide valuable takeaways for procurement professionals looking to stay ahead in the rapidly evolving automotive landscape. From monitoring EV incentives to understanding shifts in global competition, these developments are crucial for strategic decision-making in supply chain management.

#EVSales #ElectricVehicles #AutomotiveIndustry #Stellantis #USAutomotiveMarket #SupplyChain #ProcurementStrategy #ParisMotorShow #ChineseEVs #GlobalAutomotive #Sustainability #EVIncentives #SupplyChainManagement #PurchasingProfessionals

Location: California, USA

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