Foreign Direct Investment in Latin America and the Caribbean 2017

Foreign Direct Investment in Latin America and the Caribbean • 2017
Chapter II
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Figure II.25
European Union, North America and China: share of propulsion systems in vehicle sales, 2014-2030
(Percentages)
100
80
60
40
20
0
2014 2018 2022 2026 2030 2014 2018 2022 2026 2030 2014 2018 2022 2026 2030
Electric
Plug-in hybrid
Hybrid
Mild-hybrid
Diesel
Gasoline
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW),
“Electromobility”, Stuttgart, 2017 [online] https://www.zsw-bw.de/en/media-centre/data-service.html#c6700.
The Tesla S and Nissan Leaf models were the top-selling electric cars in the world
in 2016 (see figure II.26B). These two manufacturers, although starting from different
strategies, now seem to be converging. In late 2010, the launch of the Nissan Leaf set
out to seduce the mass market and quickly became the best selling electric car with
more than 200,000 units sold. In addition, thanks to a sustained R&D effort with Renault,
the company upgraded the model’s performance: the 2016 version of the Nissan Leaf
incorporated a new battery that increased autonomy by 20% (Nissan, 2016). Tesla, for
its part, has successfully targeted the high-end market. Nonetheless, the spectacular
response to the launch of the Tesla Model 3, which has become the most desired car
in history, could be a turning point in the electric vehicle market, by taking them out of
the high-end niche market to speed up their universalization.
Taking advantage of strong local market dynamics and generous government
incentives, Chinese automaker BYD Auto topped the 2016 global electric vehicle sales
ranking, surpassing 100,000 units (see figure II.27A). With three models among the
best-selling vehicles in the world and 30% of the electric vehicle market, BYD Auto
is the standout market leader in China, outperforming other manufacturers such as
BAIC Automotive Group, Zotye, Chery, Zhidou, SAIC Motor Corporation, JAC Motors,
Geely, Lifan Group, Dongfeng Motor Corporation and Changan Motors (EV-Sales, 2017).
Along the same lines, the Swedish-Chinese manufacturer Volvo became the first
large automaker to announce the end of its production with conventional engines. In
July 2017, Volvo announced that from 2019 it would only manufacture cars with electric
and hybrid engines. Between that year and 2021, the Swedish-Chinese firm will launch
five models of electric cars, two of them high-performance (Forbes, 2017g).
The most important European companies by volume are Volkswagen and BMW.
Both have focused on plug-in hybrid electric vehicles, with small batteries and little
autonomy. This type of vehicle, which has evolved from conventional models with an
internal combustion engine, has been highly encouraged in some European countries
and can be an interesting transition alternative (by offering electric autonomy for the
city and a gasoline/diesel backup for longer journeys). Nissan, for its part, has taken
the opposite approach: developing a totally electric vehicle from scratch.