Automotive

With the election behind us and a new administration taking office, there are likely to be some shifts in policies and regulations that could create headwinds at the start of the year. Overall, we’re anticipating a relatively flat year for automotive production.

In North America, the EV market has fallen short of expectations. Many OEMs have invested billions into EV technologies to comply with regulatory pushes, but customer adoption has been slower than anticipated. EVs are here to stay, but new EV model launches will likely be put on hold and widespread innovation curtailed until charging infrastructure improves, allowing consumers to travel more freely without having to plan routes around available charging stations. We’re already seeing automakers scale back on EV programs and reconsider planned battery plant expansions. This presents an opportunity to embrace more hybrid models.

On the hybrid and internal combustion engine (ICE) side, we do expect new platforms to emerge, though economic factors like higher interest rates are still limiting car sales. Hybrid models offer a practical middle ground, with proven technology that appeals to consumers.

Lightweighting by using plastic to replace metal will remain a key trend, driving improvements in fuel efficiency and battery life. Additionally, sustainable plastics are gaining traction, particularly in Europe, where demand is increasing for more eco-friendly materials in automotive applications.

Rigorous testing will be necessary to ensure that sustainable plastic substitutes meet safety, durability and environmental standards, without compromising on performance, emissions or volatile organic compounds (VOCs).