Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 912

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 912
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 motors for propulsion. A hybrid electric vehicle (HEV) is a type of a vehicle that combines a conventional internal combustion engine (ICE) propulsion system with an electric propulsion system. The most common form of HEV is the hybrid electric car, though hybrid electric trucks (pickups and tractors) and SUVs also exist. Industry Performance Hybrid and Electric Vehicle Manufacturing industry revenue has grown at a CAGR of 29.6% to $88.8 billion through 2023, including a 24.7% rise in 2023 alone, when profit is set to reach 7.3%. On the road to greener pastures •Global warming continues to be an important environmental issue as consumers want to make a difference. •Fully electric vehicles emit three times less emissions than cars running on gasoline. •Lower emissions and higher fuel economy make electric and hybrid cars more attractive. •Based on data from the Alternative Fuels Data Center, hybrids, plug-in hybrids, and all-electric vehicles emit 6,258 lbs, 5,779 lbs and 3932 lbs of carbon dioxide per year, respectively. Gasoline vehicles, on the other hand, emit more than 11,000 lbs of CO2 per year. •The manufacturing process in power plants produces the majority of emissions. Government assistance fuels demand •President Joe Biden set the goal to have electric vehicles account for half of new car sales by 2030. •The newly passed Inflation Reduction Act provides up to $7,500 in tax credits for eligible purchases of electric vehicles, both new and used. •To qualify for this program, the final assembly must be in North America, reducing import volumes from Japan. •The Infrastructure Investment and Jobs Act provides funding for new charging stations across the country, making them more accessible for the public. Fuel prices spiral out of control •High oil and gas prices through 2023 have made traditional cars more expensive for consumers. •The declining price of battery packs has made electric vehicles less costly, increasing sales. Key External Drivers 1.Consumer confidence index: Consumer sentiment has played an important role in industry demand. When consumers are low on disposable income, they tend to postpone purchases, hurting automakers. Consumer confidence plummeted in 2020, which flowed upstream to industry players as fewer hybrid and electric vehicles were purchased. The Consumer Confidence Index is expected to decrease in 2023. ____________ 6IBISWorld Industry Report OD5146, Hybrid and Electric Vehicle Manufacturing, January 2023. Annex D-