Combustion Vehicle Inventory Drops

The more data points you have the easier it is to make larger predictions and find the truth about why one thing is happening vs another. While the demand for electric vehicles is on the rise, combustion-based vehicles or vehicles that run on gasoline still outnumber electric vehicles on the production track. However, the auto industry is currently experiencing a manufacturing shortfall and as a result, they claim they are cutting production on all their vehicles. However, our 2021 numbers show that combustion vehicles are first on the chopping block by a long shot.

Production is Dropping:

Between 2020 and 2021 combustion vehicle production dropped by more than five million. Everyone understood that the effects of a globalized pandemic were going to lead to more than a few production issues. However, data doesn’t lie, and while combustion-based vehicles saw a decrease in production, other vehicles marketed as ecological saw an increase in production. The only exceptions were ERV’s or Extended Electric Range Vehicles which only had a production decrease of seven between 2020 and 2021.

Increased Production of Electric Vehicles:

The decrease in combustion vehicles manufactured did not match the increase in electric vehicles. This indicates that while manufacturers have increased production of electric cars, they are not currently increasing production at an optimal rate fitting to the market. In total, hybrids and electric vehicles saw a production increase of less than half a million between 2020 and 2021. That being said a 32% production increase is nothing to sneeze at as demand continues to increase it will be interesting to watch if these manufacturing and production shortages lead to a speedier transition to getting more electric vehicles on the road.

What is Classified as a hybrid or electric vehicle?

Currently, there are six hybrid or electric vehicle types to choose from. Hybrids use a combination of gasoline and electricity to power the vehicle, while non-hybrids typically run exclusively on electricity.

A hybrid electric vehicle, also known as an HEV, has a combustion engine and a battery-powered operating system. An HEV does not plug into a port in order to charge but rather collects energy into a battery when the brakes are used. There are multiple forms of hybrid vehicles on the market. In addition to the standard HEV, you also have mild hybrid electric vehicles (MHEV) and Plug-In Hybrid Electric Vehicles (PHEV).

Mild hybrids cannot power the entire vehicle with electricity alone the way hybrid vehicles can. Purchasing an MHEV will allow your vehicle to remain idle at stop signs and stop lights without utilizing gas, but once you are out of gas, your car won’t be going anywhere.

A plug-in hybrid (PHEV) is often referred to in advertising as a Series Hybrid. They offer plug-in charge features for the battery and the battery is responsible for driving the wheels on the vehicle. Like any other HEV, the battery can also be charged through the braking system.

There are multiple vehicles on the market that one might consider fully electric. A fully electric vehicle can have one of the following powertrain systems: a battery electric vehicle (BEV), an extended-range electric vehicle (EREV), or a fuel cell electric vehicle (FCEV). A hybrid vehicle depends on the combustion engine for long-distance functionality.

An extended-range electric vehicle (EREV) has a small combustion engine. This engine is used to charge the battery when it is at zero and you don’t have a charging station nearby. The vehicle’s movements and functions are still run 100% by electricity, but fuel placed in the generator will recharge the battery enough to keep your vehicle moving when you are unable to reach a charging station during long-distance drives.

No gas is required or used within the operation of a battery electric vehicle (BEV). Instead, the vehicle is recharged by plugging it into an electrical outlet.

Finally, you have fuel cell electric vehicles (FCEVs) while these vehicles technically run on electricity, the vehicles create their own electricity by combining hydrogen and oxygen to produce energy. These vehicles require you to pump a special type of hydrogen fuel into the tank in order to keep the vehicle running.

Electric Vehicles only started picking up production within the past five years, with recent delays in manufacturing and production it will be interesting to see how production ramps up once parts shortages are no longer a problem. Marketcheck will be keeping an eye on these numbers as well as digging into some other variables in the future. If you have questions you would like to see answers to regarding the automotive industry contact us and one of our consultants will give you a call to discuss how we can help your automotive business access the data you need to support your customers.

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