Rift forming Big Oil OEMs

Home > Industry Analysis > Content

【Summary】Big Oil and OEMs have historically been aligned, but a rift may be forming as electric vehicle (EV) sales surge. The two industries once agreed that EVs were expensive and disruptive, but now EV sales are projected to increase by 35% in 2023.

FutureCar Staff Aug 22, 2023 9:19 AM PT

For many decades, the automotive industry and Big Oil have worked together closely. In the 1950s, they joined forces to develop the road infrastructure in the US and promote a reliance on private vehicles. Both industries shared the same view on electric vehicles (EVs) for a while - they were seen as costly, disruptive, and a potential threat to their profits.

However, the landscape has significantly changed in the past five years. The demand for EVs has been steadily increasing, and this trend shows no signs of slowing down. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, there is a projected 35% growth in unit sales from 2022.