Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 914

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 914
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2028, revenue is forecast to increase a CAGR of 11.7% to $154.7 billion, with profit creeping upward to 8.3% of revenue. Incentives continue to push growth •Tax credits for electric vehicles will be in place through 2032, with tax credits as rebates starting in 2024. •The percentage of critical minerals and battery components sourced from North America is set to increase every year, bringing production back to the United States for quicker access to these materials (these benchmarks are only necessary for vehicles that want to qualify for tax credits). •More charging station installations will increase access to electric vehicles domestically. Research and development aimed to cut costs •Battery makers will continue to receive funding to produce low-cost and longer lasting batteries. •These batteries cut down on the price of vehicles while allowing them to travel further, which has been the main complaint about electric cars. •Lower purchasing costs equate to higher profit. Annex D-1-7 Sustainability remains a selling point •Concerns about limited fossil fuels continue to be an issue. •Elevated fuel prices will deter customers away from traditional vehicles. •Commercial customers will continue to replace outdated fleets with new electric and hybrid vehicles to reach ESG standards. •New entrants will continue joining the industry and create innovative productions to address rising environmental concerns. Heavy Duty Truck Manufacturing 7 Industry Performance Global heavy-duty truck manufacturing’s revenue has been falling at a CAGR of 5.0% over the past five years, including an estimated 1.7% growth in the current year, and is expected to total $345.7 billion in 2023, with profit set to reach 6.9%. Volatile commodity prices influence profitability •Steel and aluminum prices, two major components in truck production, have been volatile and increased during the period. •When these costs rise, manufacturing costs also increase, hurting profit. BRIC nations’ performance is vastly different from that of developed countries •Most trucks manufactured in BRIC countries are for domestic use or are exported to other emerging economies. •The COVID-19 pandemic led to economic effects of varying degrees globally, with Brazil, India and Russia experiencing sharp economic contractions in 2020. •While China suffered somewhat, the zero-covid policy contributed to lower productivity during the lockdown period, decreasing its contribution to the industry. •Aside from COVID-19, the Ukraine-Russian war reduced Russia’s production volume, contributing to lower industry revenue. The industry has been characterized by high merger and acquisition activity