EV supply chain awaits peak season after fruitful Q2

Electric vehicles have seen a record-breaking growth; Tesla's delivery figures broke records this Q2, while Chinese-owned companies NIO and XPeng reported similar performances in June. Brands are looking forward to Q3, Q4 figures, as the latter half of the working year, is traditionally peak season.

With EVs' market penetration rate growing steadily, experts believe supply-demand will continue to be warm going into 2022.

The EV supply chain includes Hon Hai, Delta, Wistron, Quanta, Pegatron, Bizlink, Hota, Hu Lane Associate Inc, K.S. Terminals, and Excellence Opto. For instance, Tesla's battery harness supplier Bizlink reported NTD$2.407 billion in June, a YoY 36.8% increase, and a 3.9% uptick per month, marking a single-month record.

K.S. Terminals' revenue in the second quarter was NTD$1.193 billion, an increase of 12.4% quarterly and 40.7% year-on-year, also setting a new single-quarter high. The company benefited from the continuous rise in the proportion of automotive products; as it is an automotive terminal factory that mainly supplies Tesla's charging guns, charging piles, and other products.

Despite the difficulties of chip shortages and high raw material prices, the leading electric vehicle Tesla produced 206,400 cars in the second quarter and delivered a total of 201,200 vehicles, an annual increase of 122%, setting a new single-season high, which was better than market expectations.

In terms of traditional automakers, for example, Volkswagen sold nearly 10 million vehicles worldwide in 2020, and aims to sell at least 1 million electric vehicles each year by 2025. At present, whether it is a new electric vehicle manufacturer or a traditional car manufacturer, all of them are now selling electric vehicles, expected to drive the performance of the electric vehicle supply chain altogether.