New page

Blog

Volatile Demand — Across ICEs, Hybrids and EVs —Continues to Disrupt the Auto Industry

2 分钟阅读

New U.S. import tariffs on finished vehicles and automotive parts are getting a lot of attention, and with good reason. The cost of the tariffs for U.S. automakers is estimated to exceed $100 billion. In addition, thousands of employees face layoffs, and automakers are already weighing some big supply chain shifts in response.  

But that isn’t the only shock wave U.S. President Donald Trump has sent through the global automotive industry. Almost immediately, Trump began to significantly increase the uncertainty around electric vehicle (EV) adoption in the U.S. In his first days in office, Trump rolled back Joe Biden’s commitment that 50% of all new vehicles sold in the U.S. would be electric by 2035. He also eliminated many of Biden’s tax credits created to incentivize EV buyers.

While EVs represent only 1.4% of the cars on American roads today, there’s long been optimism that this number would increase dramatically. But Trump’s first three months in office have only fueled further demand uncertainty around EVs.  

While the U.S. and other countries are pushing back EV adoption guidelines, some nations are embracing EVs more enthusiastically. There are just 4 million EVs in all of America — but Chinese car buyers are purchasing a million EVs every month. The United Kingdom’s ZEV mandate will phase out all new petrol and diesel car sales in 2030. Global EV sales increased by 36% year-over-year in March, but that growth in extremely uneven, largely centered in Asia and Europe. Chinese automaker BYD dominates the EV segment, with production figures that double its closest competitor, Tesla.  

What is happening with U.S. tariffs and what does it mean?

Uncover what has changed in U.S. trade policy and tariffs during 2025, how and when those changes are being applied, what’s covered, and what it means for businesses.

Discover More

Automakers face unprecedented challenges in planning, production 

As they forecast demand across internal combustion engine (ICE) models, EVs, EREVs (extended range EVs) and hybrids, automakers face incredible challenges in getting the product mix right by channel and region — let alone accounting for consumers’ growing demand for vehicle customization.  

Shifting trade policies, evolving market dynamics, and intensifying global competition are redefining the landscape. The global auto industry is in a markedly different position than just a year ago. While we always expected the energy transition to be dynamic, it’s now clear that it will be even more unpredictable, complex and regionally divergent than predicted.

World automotive leaders are approaching this challenge in different ways:

  • BYD is revising its European strategy to produce PHEVs (plug-in hybrid EVs) alongside EVs at new facilities. 
  • Bentley plans to launch a plug-in or fully electric model annually, allowing for flexibility in its approach. 
  • Mitsubishi will begin selling Foxconn-built EVs starting in 2026. 
  • Mercedes-Benz is repurposing unused capacity at its Vance, Alabama, plant (currently producing EQE and EQS EVs) to build the GLC. 
  • Waymo, in partnership with Magna International, plans to assemble Jaguar I-Pace and Zeekr vehicles equipped with its autonomous technology at a new U.S. plant in Mesa, Arizona. 

 

The stakes are high. And the costs are high. Original equipment manufacturers (OEMs) can’t afford to miss a sales opportunity, but they also don’t want to overproduce the wrong vehicles and options. It’s impossible to predict the future. Will Americans continue to purchase EVs, especially as inflation drives fuel costs higher? Will they stop purchasing cars altogether until financial markets stabilize? And what will happen in other parts of the world in 2025 and beyond?  

While much is uncertain, one fact remains clear: These complex planning challenges can’t be addressed via manual processes, human analysis and outdated solutions that simply weren’t built for the task. There’s no way manual analysis and human cognition can keep track of fast-moving demand across all models, regions and channels — or sense demand changes quickly enough to drive a strategic, profitable response.

Since demand volatility for EVs and other cars is only increasing, automakers have no choice: They need to adopt new planning practices, across their global supply networks, that are built for uncertainty. They need to increase their capabilities to gather real-time data, apply advanced analytics, make intelligent decisions and pivot in an orchestrated manner, across the supply chain ecosystem.

Master the EV battery challenge

Avoid costly inventory and missed opportunities. Learn how to navigate the complexities of EV battery demand and build a resilient supply chain.

Discover More

The solution? Driving improvements in three areas  

Backed by decades of serving the worldwide auto industry, and hundreds of customer success stories, Blue Yonder has identified three key capabilities OEMs need to embrace sooner rather than later:

  • Increased collaboration and visibility across the network. Few industries can match the supply chain scale, scope and complexity of global auto manufacturing. It can be difficult to connect all supply chain partners for real-time awareness, collaboration and orchestration. Blue Yonder Network is designed to provide real-time connectivity and visibility across multi-tier supply chains, creating a fluid, dynamic ecosystem. Blue Yonder Network enables a holistic platform where automotive trading partners can seamlessly collaborate, plan, execute and re-execute as market conditions change. In addition, Blue Yonder Platform performs real-time, end-to-end monitoring, creating an early awareness of disruptions at any node. 
  • Integrated, agile business planning practices. As multiple functions and partners create collaborative plans, Blue Yonder Platform is the purpose-built solution they need. With real-time order, shipment and inventory status, all supply chain partners can react to unforeseen changes in real time by intelligently adapting material procurement, transportation routes and modes, order processing and other activities. For example, Sales & Operations Planning can collaborate with Order Forecasting to plan for multiple models with different configurations and trims, over multiple markets and regional distribution centers. They can see stock in transit and at dealers, then plan accordingly. The Blue Yonder Platform enables seamless stakeholder engagement and consensus, so the larger supply network is working in alignment, not at cross-purposes. Automated scenario planning increases the confidence of all stakeholders and leads to more predictable outcomes, even in an unpredictable landscape. 
  • Advanced production scheduling processes. It’s relatively easy to change sales forecasts and plans — especially when you consider the heavy lifting and high capital investments associated with car and truck manufacturing. Blue Yonder Platform’s Advanced Production Scheduling (APS) is designed to make it easier to translate detailed, dynamic, real-time forecasts and demand plans into detailed, dynamic, real-time manufacturing plans. Blue Yonder Platform’s APS uses specialized algorithms to consider data from across the network, both upstream and downstream. Then it transforms these massive amounts of data into smart plans aimed at meeting production deadlines and delivery dates, optimizing materials and finished inventory, and reducing operational costs across the manufacturing network. Sequencing, slotting and detailed scheduled happen on a flexible, fluid basis that minimizes cost and risk exposure, while maximizing capacities and service levels. 

 

The benefits of accurate, dynamic production planning across facilities extend across the supply chain. When automakers know their production plans for all plants, they can improve the cost and efficiency of execution due to better aligned transportation plans.

You’ve embraced product innovation. Now embrace planning innovation. 

The world’s car buyers have unprecedented choices today when it comes to purchasing a vehicle. From advanced EV powertrains to new autonomous driving functionality, the world’s OEMs have introduced amazing, innovative product features that make driving safer, more comfortable and more environmentally responsible. While that unprecedented product range has led to unprecedented demand uncertainty, we can all agree that EVs and other innovations are worth it.

Just as they’re invested in exciting product innovations, it’s time for OEMs to abandon their manual processes, human analysis and outdated legacy solutions. They need to match their product innovation with an equal level of planning and collaboration innovation. Blue Yonder has the end-to-end capabilities automakers need to get their competitive engines revving.

Navigate demand challenges more effectively and profitably

See how Blue Yonder can help you navigate all demand challenges associated with EVs and all other obstacles. 

联系我们Drive Your Performance