Electric vehicle strategy shift by major automakers

What happened: Major automakers are shifting their electric vehicle (EV) strategies. Tata and JSW Groups are investing $1bn in domestic EV and battery research in India. Nissan cancelled BEV production in Mississippi due to slowing US demand. Volkswagen ended ID.4 production in Tennessee. Sony Honda Mobility ceased AFEELA EV development. Ford, however, remains bullish on EVs, particularly its new electric pickup. Jaguar Land Rover reversed plans for an EV-only factory. GM's new strategy involves battery energy storage systems. Stellantis focused on Jeep, Ram, Peugeot, and Fiat brands. Hybrid vehicles are gaining market share due to high gas prices and EV incentives rollback.

Market impact: The EV sector is experiencing a strategic reshuffle, with some automakers pausing or adjusting production plans. This impacts supply chains, with companies like Tata and JSW investing in domestic battery research to reduce reliance on Chinese supply. Ford's bullish stance on EVs and GM's pivot to battery energy storage systems could disrupt the market. Stellantis' focus on select brands affects the competitive landscape. The rise of hybrid vehicles impacts the demand dynamics for both EVs and traditional internal combustion engine vehicles.

What to watch next: Ford's earnings on April 26 will provide insights into its EV strategy and battery energy storage systems. Stellantis' shareholder meeting on April 28 may offer more details on its FaSTLAne 2030 plan. The US Inflation Reduction Act's EV tax credit changes, effective in 2023, will significantly impact EV demand and automakers' strategies.