Is the supply chain ready for zero-emission vehicles?

Interest in zero-emission vehicles is growing, prompted by both environmental and air quality concerns. Electric vehicles (EVs) in particular are powering ahead in key markets around the world. In Norway, EVs represented 56% of all new car registrations for the month of March. In the UK, EV volumes take a smaller share at just 4.6% of the new car market but the growth has been tremendous: sales jumped nearly threefold in March.

The segment could see further stimulus in the wake of the novel coronavirus. With many cities on lockdown and transport use slashed, the world has witnessed a dramatic improvement in air pollution. The Indian city of New Delhi, for instance, saw particulate matter readings plummet 71% in the first week after the lockdown began, according to government data. People are noticing, and not just in India. One recent survey found that 45% of UK respondents felt this impact on air quality has made them reconsider their EV ownership plans, with 17% stating it reaffirmed their decision to switch to an EV.

Automakers and consumers are ready, but what about the supply chain?