FUTURE EVS AND AVS WILL BE DELAYED

EV Channels Review

This Autoline Exclusives episode features Matteo Feeney of IHS Markit discussing the impact of COVID-19 on automotive R&D budgets and future technologies. The survey reveals significant R&D budget cuts are anticipated, with OEMs generally more optimistic about recovery timelines (3-6 months) than suppliers (over a year). A striking finding is that 98% of respondents believe CO2/fuel economy regulations will be diluted. Development stages are crucial; projects from design freeze (-24 months to launch) are more committed than those in earlier phases. Electrification investments are seen as more advanced and likely to proceed, albeit with delays, compared to autonomous driving technologies (Level 3 and above), which face potential slowdowns due to a lack of clear customer demand and OEM benefit. The discussion also touches on potential shifts towards in-house R&D and the possibility of market consolidation as a positive outcome, leading to stronger, more financially sound companies.