Manufacturers Optimistic on EV Production Growth in 2023

Hello, Champions of Net Zero!

As the automotive industry gears up for an electrifying future, optimism is buzzing in the air regarding the growth of electric vehicle (EV) production. However, a recent study conducted by ABB Robotics presents a twist: while manufacturers are excited about the trajectory of EV output, they remain cautious about the feasibility of meeting ambitious production timelines. This uncertainty stems from “factors beyond the factory environment,” highlighting the complexities of transitioning to a greener automotive landscape.

The insights come from ABB Robotics’ third Automotive Manufacturing Outlook Survey, a collaboration with Automotive Manufacturing Solutions that sheds light on the sentiments of professionals within the sector. The survey indicates that manufacturing leaders are feeling hopeful about significant advancements in EV production as we look ahead to 2025.

In fact, nearly a third of the respondents (31%) anticipate an increase in EV output by more than 10%. This expectation is backed by strong evidence that manufacturing capabilities have improved considerably, with substantial changes in production technology and a commitment to upskilling the workforce. An additional 44% of participants believe that production will grow this year, albeit by up to 10%. Only 21% expressed a more pessimistic view, indicating that EV production would remain static (8%) or decline (13%) through 2025.

Despite this optimistic outlook for EV growth, a concerning trend has emerged regarding confidence in meeting proposed production deadlines. When asked about the achievability of 100% electric vehicle production to meet regional deadlines set between 2030 and 2040, 31% of respondents deemed this target unrealistic. This marks a notable increase from 27% last year and just 18% in 2022. Overall, a staggering two-thirds (65%) of those surveyed expressed skepticism about achieving full EV production within the anticipated timeframe.

Digging deeper into the reasons behind this decline in confidence, the survey revealed that the primary barriers to progress are increasingly seen as external to the factory environment. Key factors include fluctuating consumer demand and concerns about the reliability and accessibility of charging infrastructure. These elements are crucial as they directly influence the adoption rates of electric vehicles among consumers.

Moreover, the survey not only focused on electric vehicles but also highlighted a strong growth trajectory for hybrid powertrains in the coming years. An impressive 67% of respondents expect an increase in the production of plug-in hybrid electric vehicles (PHEVs), with 20% forecasting production growth exceeding 10%. Similarly, the outlook for hybrid electric vehicles (HEVs) is equally promising, with 62% of participants anticipating an uptick in output this year.

Joerg Reger, Managing Director of ABB Automotive Business Line, commented on the survey findings: “This year’s survey reveals a general optimism among automotive manufacturing professionals regarding the growth of EV production in 2025. However, there is a palpable concern about meeting 100% electric vehicle production timetables due to challenges that now often extend beyond the factory walls.”

Reger further emphasised the improvements in EV manufacturing capabilities, stating, “There’s strong evidence that EV manufacturing capabilities are now considerably improved. ABB Robotics has made widescale changes to our own robotic and automation portfolio to support our customers and drive this transformation forward at pace.”

Daniel Harrison, Chief Analyst for Automotive Manufacturing Solutions, echoed Reger’s sentiments, noting, “Hybrid passenger vehicle production remains buoyant, with the global manufacturing community expecting to produce more cars in 2025. These results support the survey’s main findings that the overall pace of EV adoption is currently not fast enough to meet some of the upcoming legislative deadlines for a 100% electric future.”

Harrison highlighted the complexities involved in the manufacturing environment, stating, “The production of numerous powertrains across several model lines can create considerable complexity and additional costs, which have been identified in our previous surveys conducted in partnership with ABB Robotics.”

As we stand on the brink of a monumental shift in the automotive landscape, the findings of this survey paint a complex picture. While the enthusiasm for electric vehicles is palpable, the industry must navigate a myriad of challenges to realise the vision of a fully electrified future. The insights provided by ABB Robotics and Automotive Manufacturing Solutions offer valuable perspectives that can inform strategies moving forward, ensuring that the path to net zero is not only ambitious but also achievable.

In conclusion, the automotive sector’s journey toward electrification remains a dynamic and multifaceted endeavour. As manufacturers grapple with external pressures and internal transformations, the commitment to innovation and adaptability will be crucial. The road ahead may be fraught with challenges, but the collective determination to drive forward towards a sustainable automotive future is stronger than ever. Let us continue to champion this transition, supporting the industry in overcoming hurdles and embracing the electric revolution with open arms.