New Investment Opportunities In EV Manufacturing And Services

The recent tabling of the Budget 2022 saw the announcement full exemption of import duties, excise duties and sales tax for electric vehicles. This is seen an important milestone in the local development of technologies and business activities related to electric vehicles - as there is now a direct consumer incentive to spur industry growth.

In order to appreciate the opportunities arising in the EV sector, it is important to frame the next phase of electrification in a different tone to the manufacturing, sales, and servicing of traditional internal combustion vehicles.

While traditional and electric vehicles may look the same - from the onset, EV development is not just about replacing the fuel tank with a battery (although this gets the most attention).

Under the skin of an electric vehicle lies a major difference in most of the components: battery operated vehicles place a higher demand for lightweighting, as new lighter materials will now be in high demand to replace the heavier steel frames and parts used in conventional vehicles.

Electric vehicles will also require a lot less components, meaning the vehicle manufacturers may change their strategies in procurement and assembly of these components.

Where does this leave current businesses? A lot actually as investments in lightweight components will be in higher demands, as will in capabilities in servicing and repairs in electric vehicles.