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 as electric vehicle (EV) sales surge. EVs were seen as expensive and disruptive, but their popularity is increasing, with a projected 35% increase in unit sales by 2023.

FutureCar Staff Aug 30, 2023 10:01 AM PT

For many decades, the automotive industry and Big Oil have been closely connected. 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 were also in agreement about electric vehicles (EVs) for a while, as they were seen as expensive, disruptive, and potentially harmful to their profits. However, the landscape has significantly changed in the past five years.

Currently, there has been a remarkable surge in EV sales. 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 indicates a significant shift in consumer preferences and the growing acceptance of EVs as a viable alternative to traditional gasoline-powered vehicles.