17 Mar 2023
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In this particular analysis, Sentadell Associate presents select pieces of information supported by conducted research and forecast data on the Automotive Industry, focusing on the promising EV trends expected in 2023.
As the 2023 new year commences, global economic conditions are predicted to improve, one of which refers to the growth of one of the world's economic leaders, the United States. This data is seen from the economic growth rate which is quite higher than expected, namely 2%, which is also referred to the interest rates of 4.5% that at the same time has an impact on the capital market.
But what exactly would be the foremost dominant industry in 2023? One of the most promising industries is the EV (Electric Vehicle) sector. Nonetheless, before confiscating into this further information, we should understand the development of Electric Vehicles within the world economy environment. For the figure, EV sales globally alone in 2022 reached a sales figure of 10.2 million units compared to the previous year at 6.6 million unit sales. This means there is a 65% growth from year on year and it is projected that by the end of 2023 there will be nearly 17 million unit sales. The tremendous growth has demonstrated that the EV industry becomes the foremost industry in terms of growth.
According to the data gathered by Sentadell Associates on electric vehicle sales in various regions, including Australia, China, Europe, and South Korea, it is evident that China is the dominant market in terms of volume. In contrast, the US leads in terms of performance, with the highest annual change in electric vehicle sales. The primary reason for China's success in the market is the affordability and convenience of EV options manufactured in the country, which has fueled the high demand for EVs among its population. This trend also aligns with China's objective of achieving a 40% per unit sales target by 2030.
In addition, Indonesia is the current top developing country to produce the most nickel which is the main commodity component that makes up EV`s Battery, followed by the Philippines, Russia, Australia, Canada, and China.
Indonesia as a reservation center with a percentage of 52% of the world's total nickel reserves has become a pull factor for the increasing investment actions for nickel production in Indonesia. But why suddenly all these huge shifts? The reason behind this significant shift and forecast in the EV industry is based on specific reasons and is highly concentrated on the carbon emission factor which has a negative impact on climate change. One of the impacts is the release of carbon gas emissions by conventional vehicles with fuel which has an impact on increasing the earth's temperature to warm due to the greenhouse effect reaction. The shift to EVs has contributed to lowering and reducing as much as 0.03 million tons of conventional vehicle gas emissions.
Therefore, it could be seen that year by year, electric vehicles (EV) has become such a huge and rich industry. In terms of increasing investment globally for nickel itself, from December 2020 to the beginning of the first quarter of 2023, namely in January, numerous high-value investments have been made by various global companies around the world. One of the high investments fell in March 2022 where a major automotive company, Hyundai, became the first in Southeast Asia to build an electric vehicle battery plant in Indonesia. Investments varied widely, until there was investment action in the early quarter of 2023 in January between Aneka Tambang and Hong Kong CBL Limited for a partial ownership agreement for Antams' nickel mine in North Maluku.
In terms of global automotive trends in the electric vehicle subsector, it shows that the development of trends is quite significant and focuses a lot in developed countries such as Australia, China, Europe, and South Korea in terms of demand for its use and sales. On the other hand, the highlight is actually the focus of the EV automotive trend on its own investment towards nickel as the core commodity. This actively demonstrates the fact that investment opportunities actually exist in countries such as Indonesia, which is the center of the highest raw EV material commodity.
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