Coronavirus impacts on sales of EVs
As the world is disturbed with the widespread of the Novel Coronavirus as more than 3,000 people have died till now. It is not only impacting the lives of the people but the virus is also impacting on emerging technologies with the global supply chains including electric cars.
Coronavirus impacts on the EV market
The world’s biggest EV market, China is witnessing the fall in sales of vehicles and many other things. According to preliminary data from the China Passenger Car Association, the retails sales of passenger cars fell by 80% in February.
According to Reuters, the BYD’s electric vehicles sales went down to 79.5% year over year. The state-owned BAIC Group’s sale is down by 65.1% compared to a year ago. Volkswagen’s EV partner JAC last month sales went down to 63.4%.
The oil is cheaper and gas become less expensive at the pumps which results in the decreasing interest in the electric vehicles. The analysts claim that lower oil prices are the main reason for Tesla’s shares fall. The oil prices in the New York Mercantile Exchange flirted this week with $30 a barrel.
Not only this the epidemic also forced to the temporary closures of Tesla’s new Shanghai car plant and stores throughout the country. Most of the events being cancelled. The General Motors cancelled its next month’s planned to unveil of all-electric Cadillac Lyriq.
Most importantly the virus is impacting on the EV supply chain. The automakers are struggling with supplies of the electric car batteries. As China is the major leader in refining cobalt which is an important element in the EV batteries. The sustained impact on the cobalt processing facilities could affect the electric vehicles costs.
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