Electric vehicle strategy shift by major automakers

What happened: Major automakers are shifting their electric vehicle (EV) strategies. Tata and JSW are investing nearly $1bn in domestic EV and battery research in India. Nissan canceled production plans for two BEVs in the US due to slowing demand. Volkswagen will end ID.4 EV production in the US by 2026. Sony Honda Mobility ceased development of its AFEELA electric vehicles. Ford remains bullish on EVs, despite market slowdown, with its secret EV unit moving forward. Jeep, Dodge, and Ram will receive prioritized funding under Stellantis' new investment strategy.

Market impact: These strategic shifts signal a pullback in EV production and investment in the US, potentially impacting domestic supply chains and employment. Meanwhile, increased investment in domestic EV research in India could boost the country's supply chain resilience and accelerate EV adoption. Ford's continued EV push may provide a counterbalance to the slowdown, while Stellantis' new investment strategy could reallocate resources towards more profitable brands.

What to watch next: Ford's Q1 2023 earnings (May 23) will provide insights into its EV production and sales. Stellantis' Q1 2023 earnings (April 30) will offer details on its new investment strategy. Additionally, the evolution of US EV demand and incentives will shape the narrative around automakers' EV production plans in the country.