APAC Transformational Think Tank: Mobility Series

APAC Transformational Think Tank: Mobility Series:  A collaborative platform to introduce, share and discuss a diverse range of new ideas and provoke discussion on critical issues surrounding the future of mobility. This is where members engage with one another to share cross-industry perspectives on the forces shaping and driving new growth opportunities and areas of innovation.

Topic: Carbon to emerge as a key to the profitability

As the world faces climate calamity, numerous countries are coming together in initiatives that support achieving carbon neutrality by 2050. Therefore, all auto OEM brands globally have pledged to phase out their production of internal combustion engine (ICE) vehicles and launch electric vehicles (EVs) by setting up dedicated EV assembly plants and EV battery factories to reach the net-zero goals. Government is also supporting near-zero emission capabilities by providing subsidies, incentives, and low or no tax deductions on EV purchases, which will allow automakers to meet emissions regulations and avoid fines that can cost billions. Carbon credits are fostering EV growth and will likely drive profitability for the EV sector. For instance, the EV manufacturer Tesla has earned vast profits from the carbon credit market.

How will auto OEMs gain greater profits from regulatory carbon credits? What will their strategies be?