July 26, 2021

The Sales of Electric Vehicles and Hybrid rises amidst the Covid-19 Pandemic

As long as the COVID-19 pandemic is not yet over, the general director of Russia-based Gefco Valeria Seledkova says that EVs and hybrids’ global sales will keep growing. She acknowledged that the automotive industry was not left behind when the pandemic threatened various sectors, primarily due to movement restrictions.

However, that has not stopped different governments from supporting Electric Vehicles through an array of regulations. A good example is China, which decided that as far as a vehicle is fueled by alternative fuel, its subsidies would be extended to 2022. He also added that EVs sales in Northern European countries, UK, Germany, and France have also increased due to state subsidies.

She has noted a decrease in cargo flows because of the pandemic, but people are using alternatives such as aircraft to deliver necessary automotive products. Asia and Europe are among the regions buying most of the spare parts, and she also acknowledges that the pandemic has changed almost every aspect of the company. According to her, there was a need for a change in transport schemes. It saw the company come up with methods of protecting their employees and satisfying the customers at the same time.

Implementing new health and safety protocols became the order of the day. So far, the coronavirus has tested every aspect of how Gefco operates. In the process of adapting, the company has also learned several things. Most of them revolve around strengthening work processes, employees, and the structure of the organization.

Nevertheless, the pandemic has seen a stock offering stay on hold. That’s because, in 2018, Russian Railways planned to reduce stake without losing control of the company. One of the methods that it would use is the stocks’ initial public offering (IPO). It came years after buying 75% of the company’s stock from PSA Peugeot-Citroen, which then owned Gefco.

As of early 2019, Gefco announced that it was in no position to indulge in the stock market due to the market conditions. It preferred waiting until they were better. Early 2020, Russian Railways executive proposed selling the stake to strategic investors. The investors would come from a market sector where Gefco hardly existed.

According to reports from the Russian Railways Executives, the potential investors could be from the Gulf countries or China. However, due to the pandemic, the plans to sell the stake has come to a halt. A reliable source from the Russian logistics industry says that the sell-off is not even part of its agendas at the moment. Additionally, that will remain the case until a likely decline in the COVID-19 pandemic is registered. Until then, all the interested and involved parties can do is to wait.