The automotive industry significantly contributes to a country’s economy. Likewise, the industry has over the decade, manufactured cars that suit different consumer’s tastes and preferences and, in turn, boost the economy. However, concerns on carbon emission and global warming compelled the industry to innovate vehicles that operate on clean energy. Over the past few years, the automotive industries have manufactured Electric Vehicle (EV) that runs on electricity stored in batteries. Additionally, different countries have established numerous charging points to provide efficiency and convenience in using EVs.
Nevertheless, the world pandemic- coronavirus has affected the economy since different companies are under closure to minimize its spread. Therefore, the global economy is concerned, and the vaccine is not yet produced. Consequently, many states have recalled their citizens and stopped transportation services inside and out of the country. Despite the closure of companies, the Electric Vehicle supply chain and sales are slightly affected. Analyst tabulates that China has experienced a 16 percent increment in the purchase of EV during a 111 percent increase in Europe in February. The increase is shocking since most economic sectors have collapsed and experienced decreased sales.
On the other hand, automotive companies have shut down part of their production companies to contain the virus. But other satellite branches are still operational. For example, Tesla suspended the production process at their satellite companies in New York and Freemont, while other branches like superchargers and other service branches will still be operational. The employees working on the satellite centers receive the utmost health precaution by working in isolation while the rest work from home. Consequently, Tesla initiated outsourcing ventilators as they start delivery on Model Y.
The raw materials in the manufacture of EV have insignificantly affected. The metal includes cobalt, graphite, lithium, and nickel. Nonetheless, China forms the largest supplier of EV raw material tabulated as a 50 percent contribution globally. Thus, many countries were initially affected by the supply. However, China has managed to control the spread of the virus, and the production process has resumed in different countries. Also, the demand for EV has remained constant due to the high sales in February. The global market has resultantly shifted to Europe, while China experienced a low order. However, analysts remark that the EV demand will change to China around March since the country has contained the virus. The supply of the essential metals is unaffected since most mines are operational. For example, the quarries in Australia and Chile are functional, and their governments have stated that the mining process is essential to run the economy.