Electric vehicle market ‘still in its infancy’ despite outstanding growth
The electric vehicle (EV) market, despite a tremendous growth registered in 2021, is ‘still in its infancy’, offering diverse opportunities to investors.
According to investment banking firm UBS, suppliers of electric components as well as battery makers should benefit the most from the 115 per cent increase in EV sales that was registered las year.
“We recommend investors consider a diversified but selective approach to the auto sector,” said Mark Haefele, UBS’s chief investment office. “We favour select well-established global auto manufacturers with strong brands.
“In addition, we see upside for select tech-oriented suppliers and some high-risk newcomers with potentially groundbreaking future technologies.”
Commenting on the news, Richard Forrest, global sustainability leader at Kearney, said energy storage systems such as batteries will play a huge part in the EV transition, bringing investments with them.
“Batteries have a significant role to play in this landscape, from supporting the transition and managing this volatility for distribution network operators, to enabling consumers to benefit from local electricity generation and vehicle to grid energy management in their local area,” he said.
“Having the EV and battery industry turning to local models with this type of large-scale project is a great first step.”
In the UK, the EV market’s growth was one of the few highlights in an otherwise ‘dismal year’ for automotive output.
Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders (SMMT), reported on Thursday that investment levels reached £4.9bn and focused mainly on EV transition.
“One in 12 cars made in Britain last year was pure electric and that is about 72 per cent up, while hybrid and plug-ins took a record share accounting for about 17.9 per cent of [all manufactured vehicles],” he said.