Supply Chain Chaos in the Wake of Increased Demand for Electric Vehicles
Jen and Greg watched as the BYD salesman scuttered about with four sales on the go, while they waited for their test drive. Their lease is coming up and they’ve been hunting for their new electric vehicle. Previously, they’d taken their time, looking for a specific model to carry their four children on their annual cross-country trip to visit family. Then everything changed. The demand for electric vehicles suddenly skyrocketed. Suddenly, the car salespeople stopped calling. The BYD salesman told them there were only three models in the colour available across Australia and that over 200 had sold in the previous week. As the demand for electric cars grows, and the supply of vital build components dries up, Jen and Greg, like thousands of others in the market, face potential disappointment.
The uptake of electric cars across the world was projected to increase by a massive 25% in 2026 and sales have been growing, along with infrastructure implementation, exponentially in Australia. Used EV prices are rising sharply across Europe since the beginning of the Iran/America conflict.
It’s not just about fuel. Semiconductors (used in the manufacturing of chips used across all technology) supply disruption could see Covid like shortages on vehicle production (among other essential items) if the war continues. Essential materials including helium, neon and bromine are produced across the middle east. With shipping interrupted and ongoing damage to production plants in the area, the world risks a sudden halt in electronic technology.
“The implications go far beyond fuel costs. Access to information, and more fundamental needs, including farming production and transport are all at risk. This crisis goes beyond the interstate transport industry, and the mum and pop getting the kids to school” said Robin Moore, logistics manager at All Vehicle Freight.
So what of Jen and Greg and their current dilemma? Well, they managed to secure an electric vehicle that meets their needs. But, not in their home town of Adelaide. Instead, they’ll be paying for car transport interstate to get their new EV home.