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What is the impact of the situation between Russia and Ukraine on the auto industry?

Release date:Mar 22,2022 Source:Yihe Axle 

Electric field and intelligent process, is the traditional European auto industry and auto parts industry brings the disruptive innovation, the economic impact of the scope of how -- when a industry development is large enough to be involved in national economy and people's livelihood, Europe before the wave of new energy vehicles subsidies, is actually promote consciousness of their purchase of new energy vehicles, It's for the transformation of traditional cars to new energy.

Part 1


Raw materials for the Russian market and cars


(1) The state of the Russian market


With a population of 146 million, Russia's car market peaked at 2.94 million units in 2012 and many auto companies expect it to become Europe's largest light vehicle market. It reached a low of 1.43 million in 2016 due to the Crimea incident in 2014; Government incentives have since helped prop up the market; The recovery in 2021 was much weaker than expected due to parts shortages and tight supply -- auto sales totaled 1.67 million units for the year, up 4% from 2020.

Part 2


Medium - and long-term market volatility


(1) European energy crisis and green Transformation


Green energy development in Europe is the right path in many ways, but how to achieve the right path, ideal and reality balance is very important.

(2) Batteries and raw materials


The development of electric cars in Europe has revolved around two questions: can it make its own cells and how will the raw materials be supplied? These two questions determine whether batteries can be developed in the next generation supply chain. For Europe to invest so much, there are geopolitical constraints. With such a large capacity, the constant demand for battery materials makes a price reduction a difficult target to achieve.

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