Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 942

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 942
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 competitive. This factor is evidenced by the high acceptance of a few of the industry’s hybrid models. Industry Outlook Through 2029, revenue is forecast to increase a CAGR of 8.9%, with profit creeping upward to 10.9% of revenue. Research and development will drive growth •Manufacturers will continue to pour money into battery manufacturing to create lower-cost and longer-lasting EV and HEV batteries. Manufacturers hope to create less expensive electric models, enabling them to attract lower-income buyers and expand market reach. •Companies will also experiment with lighter materials for car bodies, increasingly opting for aluminum rather than carbon steel. This switch will aid battery lifespan. •Some manufacturers will also focus on new technologies, like autonomous driving and head-up displays (HUDs), leading to extensive partnerships with research universities and technology companies, especially semiconductor manufacturers. These advancements will create new opportunities for advanced start-ups, especially in luxury markets. •Some manufacturers will also integrate artificial intelligence and other automation techniques to cut costs, improve operational efficiency and streamline design processes. Even so, unions have limited automation and AI implementation. International manufacturers will pose a major threat •Tesla has historically had a clear advantage in the fully electric markets as an early-mover. However, other manufacturers have caught up and surpassed the EV giant through the current period. •Many economy and luxury producers, ranging from Honda and Toyota to BMW and Porsche, have released hybrid and electric vehicles across the price spectrum to compete directly with Tesla and open new markets. Annex D-2-8 •While many of these brands also have facilities in the United States, this trend will contribute to mounting exports from Japan, South Korea and Germany. The rise of German EVs will also limit domestic manufacturers’ penetration into EU markets. Even so, many producers will continue to take advantage of tax breaks, rebates and other government programs that encourage vehicle assembly in the United States. •Similarly, BYD, a Chinese brand, has emerged as a strong contender for top EV brand. The company has developed strong footholds in Asia, with BYD accounting for more than 90.0% of EV sales in China and limiting exports to Asia-Pacific. The US is considering more extensive tariffs on Chinese automobiles to prevent BYD, NIO and other Chinese brands from flooding domestic markets. Improving economic conditions will support growth •A strong economic outlook will create robust growth for hybrid and electric vehicle manufacturers. Most consumers finance automobile purchases with short-term loans. High interest rates and rampant inflation at the end of the current period made auto loans daunting