The global automotive industry finds itself at a crossroads, grappling with the pivotal question of whether the internal combustion engine (ICE) will endure in the face of rising oil prices or if the future lies in the realm of hybrid and fully electric vehicles.
From international perspectives, particularly in China, the momentum toward full electrification is undeniable. China is currently driving a rapid electrification of its vehicle market, with numerous Chinese companies fiercely competing, most notably against the American giant, Tesla.
China’s BYD, for instance, is resolutely committed to becoming a global leader not only in electric vehicles (EVs) but also in matching the world’s premier car manufacturers. Multiple other Chinese companies are hot on their heels, introducing innovative technologies and establishing China as a formidable force in the realm of EVs.
Recognizing the intensifying competition on his home turf, Tesla’s Elon Musk has initiated a price war, attempting to reduce the cost of owning a Tesla vehicle, even in the Chinese market. Musk’s strategic move is causing discomfort among his rivals, with several Chinese EV manufacturers reportedly facing challenges due to the high costs of EV production and limited funding.
Yet, the cutthroat competition among EV manufacturers is just one facet of the challenges confronting the EV market. There remains a persistent demand for ICE vehicles among consumers, alongside the popularity of hybrid cars among Japanese automakers, who have long influenced the preferences of markets like the Philippines. Many Japanese automakers are hesitant to fully commit to electric vehicles, instead opting to develop hybrid vehicles that can run on both fossil fuels and batteries. Their rationale centers on the belief that hybrids offer a more environmentally conscious solution compared to a direct shift to electricity, which entails higher energy consumption during production.
This bifurcation presents another obstacle for EV proponents, especially when other prominent car manufacturers continue to produce ICE vehicles, which are often viewed as more economically viable and dependable over the long term by a majority of consumers.
With great anticipation, the upcoming Tokyo Mobility Show (formerly Tokyo Motor Show) is expected to provide a glimpse of what the near future holds for the automotive industry. The world eagerly awaits to see the offerings and innovations that will emerge from this event.
Indeed, the Japanese automotive industry remains a formidable player on the global stage, and its direction will be closely watched by enthusiasts and industry experts alike. The future of the automotive world is poised for exciting developments, and the contributions of Japanese automakers will undoubtedly play a crucial role in shaping that future.