Rift forming between Big Oil and OEMs

Home > Industry Analysis > Content

【Summary】Big Oil and OEMs (original equipment manufacturers) have historically been aligned in the automotive industry. However, the rise of electric vehicles (EVs) is causing a potential rift between the two industries. EV sales are surging, and the International Energy Agency predicts a 35% increase in unit sales from 2022. This shift poses a threat to Big Oil's profits and highlights a changing dynamic between these key players.

FutureCar Staff Aug 25, 2023 4:30 PM PT

For many decades, the automotive industry and Big Oil have been closely connected. In the 1950s, these two industries collaborated to develop the road infrastructure in the US and promote a reliance on private vehicles. They both shared concerns about electric vehicles (EVs) as they were seen as expensive, disruptive, and potentially harmful to their profits. However, the landscape has dramatically shifted in recent years.

EV sales have been experiencing a significant surge, defying previous expectations. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% increase in unit sales from 2022. This growth indicates a change in consumer preferences and a growing acceptance of electric vehicles as a viable option in the market.