Rift forming Big Oil OEMs

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【Summary】The automotive industry and Big Oil have historically been aligned, but a rift may be forming due to the rising popularity of electric vehicles (EVs). EV sales are projected to increase by 35% in the coming year, signaling a shift away from traditional vehicles and a potential threat to Big Oil's profits.

FutureCar Staff Sep 02, 2023 4:39 PM PT

For many decades, the automotive industry and Big Oil have been closely linked. In the 1950s, these two industries joined forces to develop the road infrastructure in the United States and promote a reliance on private vehicles. They also shared a common stance on electric vehicles (EVs) for a while. Both industries saw EVs as expensive, disruptive, and a potential threat to their profits. However, the landscape has significantly changed in the past five years.

EV sales have been steadily increasing, defying the initial expectations. According to the International Energy Agency (IEA)'s Global EV Outlook 2023 report, unit sales of EVs are projected to rise by 35% from 2022 onwards. This surge in demand indicates a shifting consumer preference towards electric vehicles.