Major automotive groups are reviewing the timing of BEV model launches due to the slowing pace of BEV market expansion. It is likely that more HEVs and PHEVs will be introduced as an alternative to BEVs in response to environmental regulations.

Under the international situation where conflicts continue in various regions after the U.S. presidential election, the uncertainty surrounding global business is further increasing due to geopolitical risks such as the security environment and the impact of politics on economic activities. In particular, with regard to China, Japan’s largest trading partner, its domestic and foreign policies are currently being strongly influenced by the U.S. policy toward China. The future of U.S. foreign and trade policy toward China (the stance of the new U.S. administration, Taiwan risk, and economic and security policy) will have an impact on the Chinese economy, which in turn will affect the future of Japan-China relations (the stance of the new Japanese administration).

GM and Ford, which have been strengthening measures to shift from internal combustion engine vehicles to BEVs, have begun reviewing their product plans as of October 2024 in response to changes in demand in the U.S. market, and in addition to hastening the launch of HEVs and PHEVs, will continue selling internal combustion engine models that were initially planned to be discontinued and will push back the timing of the BEV launch. The main focus of the plan is to accelerate the launch of HEVs and PHEVs.

We will research and analyze the global competition in the SDV era, including policies and regulations in major countries around the world, as well as strategies and trends among automakers, parts suppliers, and related stakeholders. The status of initiatives not only in hardware but also in software-related areas will be investigated, and the expected inter-industry competition for survival as the SDV shift progresses will also need to be analyzed.

Due to the recent changes in the global situation, we believe that product strategies by companies are likely to change significantly in the future.