ON Industries - Automotive
With demand for EVs on the rise and state regulators proposing bans on gas-fueled cars, what can banks expect for their automotive loan book going forward?
June 9, 2022 | 1:00pm Eastern
The automotive sector is a vital part of the US economy – accounting for 3% of the country’s GDP – but with increasing demand for electric vehicles (EVs), and evolving battery and fuel cell technology, it is witnessing incredible disruption. The ripple effects of which will be felt across the entire automotive value chain – from the 18,000 new-car dealerships and 140,000 used-car dealerships to the 234,700 auto repair and maintenance centers.
With EVs expected to represent 16% of all new car sales in the US this year, and certain state regulators proposing bans on the sale of gas-fueled cars by 2035, what will the implications be for businesses in this sector and what can commercial banks be doing to prepare?
Join us to learn:
- How to develop a loan-level understanding of how transition risks will cascade down the automotive value chain
- How you can use scenario analysis on a loan-by-loan basis to manage credit outcomes
- How your bank can turn this risk into an opportunity to support borrowers in their transition to the green economy