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Tesla to Mercedes: The world’s best EV makers to double investment this decade

Tesla to Mercedes: The world's best EV makers to double investment this decade

Most EV manufacturers have set themselves EV goals to reach by 2030, as many of them plan to convert their entire range to electric models by the end of this decade.

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HT Autodesk

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Updated on:
Oct 21, 2022, 11:41

As automakers aim to convert their range to electric vehicles by 2030, investment in EV business is expected to surge in the coming years. (HT_PRINT)

Electric vehicle sales around the world are up more than 50 percent in the first nine months of the year. With nearly six million units sold worldwide as of September, EV manufacturers plan to increase their investment to produce more electric cars in the coming years. From Tesla for Mercedes-Benz, EV manufacturers from around the world have announced a budget increase to make more cars, batteries and other equipment related to EVs as they move closer to their respective target of transforming the existing fleet by 2030 to EVs.

Overall, the investment is pegged at about $1.2 trillion (roughly converted to 9.95 lakh crore) through 2030. The amount is nearly double what was previously speculated and is nearly as much as EV makers like Alphabet’s $1.3 trillion market cap. EV makers plan to produce 54 million EVs over the next eight years, averaging about 7 million EVs as of now.

The world’s largest EV maker Tesla will lead the way after CEO Elon Musk announced the EV maker’s plan to build 20 million EVs by 2030. Tesla is also reportedly working on a smaller EV platform that will help make its electric cars more affordable than Tesla’s Model 3 and Model Y. Tesla’s estimated investment could run into the hundreds of billions of dollars, according to a Reuters analysis of Tesla’s financial disclosures and forecasts.

German car giant Volkswagenone of the largest EV manufacturers after Tesla, it is expected to invest more than $100 billion to build new EVs and set up new battery production facilities in Europe and North America. Toyota Motor will invest about $70 billion to produce more electric vehicles and EV batteries. Toyota is expected to sell some 3.5 million EVs by 2030, with at least 30 EV models.

Mercedes-BenzIndia’s largest luxury car maker, will invest $47 billion in new EVs and increase its battery capacity with partners to more than 200 gigawatt hours. The German automaker recently partnered with Canadian-German Rock Tech Lithium to get 10,000 tons of battery-grade lithium hydroxide per year to increase production of all-electric vehicles.

Ford Motor is also expected to increase its investment by $50 billion to reach its goal of producing approximately 3 million EVs by 2030. BMW, Stellantis and General Motors also plan to spend about $35 billion each on EVs and batteries.

Date of first publication: Oct 21, 2022, 11:41 AM IST