With the global automotive market suffering from high commodity prices, companies are being 'forced' to use renewable energy and accelerate the process of electrifying the vehicle fleet to contain operating costs.

Paulo Nogueira
12-05-2022 10:59:04
in Automotive, Electric Vehicles
electric cars and renewable energy The global automotive market is looking for ways to lower operating costs: Source: How Stuffs Works

The importance of an energy matrix less dependent on oil ended up being evident to many companies that depend on this commodity.

Last month, LeasePlan International organized a webinar to analyze the issue of commodities, which includes the automotive market, consumer behavior and global supply development. The intention was to show fleet providers and professionals what the future of the global economy is, where renewable energy and the electrification of the vehicle fleet can help them prepare for it. Check out a little more about everything that was discussed below:

Inflation is an issue that has worried not only the Brazilian market, but also the European and North American markets. In addition, the supply chain is experiencing turmoil, with prices for raw materials such as aluminum, nickel and palladium soaring.

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The biggest impact is on the automotive market

There is also a lack of manpower to complete services in the transport sector. Therefore, the availability of vehicle components remains a matter of concern, since, beyond the semiconductors, now also the distribution of electrical harnesses is impaired.

LeasePlan International | Webnar on the Future of the Global Economy

How countries are affected with commodities at this level

Rising commodity prices mean a greater risk of recession in many countries where interest rates remain high. Higher vehicle parts and material costs, combined with the demand for new vehicles, are leading to an increase in the prices of both new and used cars. 

In addition, oil and gas prices have increased dramatically, and have driven the market and consumers to seek renewable energy. So in Europe and North America, governments and private companies are looking to clean energy as the solution. And this could be the stimulus the market needs to accelerate the electrification of the vehicle fleet.

Consumer behavior has changed. Demand for services fell while demand for goods increased in some parts of the world. This was due to supply chain problems, as well as significant increases in energy and food prices, which pushed inflation to higher levels.

So, it is necessary to imagine a scenario in which fuel prices remain high for at least two years, and thus already plan the transition to renewable energy sources; that is, electrify the fleet.

Source: evcom.com.br and LeasePlan Brasil

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Paulo Nogueira
With technical training, I worked in the offshore oil and gas market for a few years. Today, my team and I are dedicated to bringing information from the Brazilian energy sector and the world, always with credible and up-to-date sources.