The shortage of chips in many sectors is now receding, but the automotive industry continues to be affected. According to S&P Global, this will change little in 2023. In its outlook for the new year, the financial services group lists a number of other challenges facing the sector. In the U.S., these include the Inflation Reduction Act, which subsidizes the purchase of electric cars if the vehicle was built in the U.S., it said.
According to the New York Times (paywall), a certificate of origin will also be required for the origin of the vehicle battery or the necessary raw materials as of March. At least 40 percent must come from the U.S. or an allied country to qualify for the government subsidy. Currently, China has supremacy in processing the battery base materials lithium and graphite.
In Europe, high energy prices and other factors are weighing on consumers’ real incomes and could lead to spending restraint, S&P Global said, citing analysts.