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The big worry for carmakers: what if the EV slowdown is not a blip?

Expansion of production is far outstripping demand, raising fears of a misallocation of capital

As global electric vehicle sales growth slows, carmakers and regulators are asking an existential question: is the current slowdown a blip? 

One scenario sees mass market buyers, who currently balk at higher prices of EVs, eventually come around and flock to the technology. EVs are silent, accelerate like sports cars and can save money in the long run. Once they are cheaper than petrol cars, and there are enough chargers, most consumers will never turn back. 

The other scenario is more worrying. If prices do not fall, or legitimate concerns over charging infrastructure are not met, motorists may resist indefinitely. The implications of the second are potentially concerning. Meeting long-term decarbonisation targets without removing all petrol and diesel cars from the roads is impossible. 

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