TPI supports the automotive industry’s rapid transition to electrification through the composite solutions we produce as part of our automotive business unit. The impacts of climate change over the past year have emphasized the importance of transitioning to electric vehicles to reduce emissions in the automotive sector. Customer demand for electric vehicles in the global market is expected to represent over 17% of new passenger vehicle sales by 2025 as customer incentives, infrastructure, and technology advancements continue to improve.1 Global policy will also assist in the electrification of the transport sector, as legislation shifts to align with decarbonization. We expect the Inflation Reduction Act to be a demand catalyst in the U.S. for commercial vehicles given the many provisions including the Commercial Clean Vehicle Credit, Alternative Fuel Refueling Property Credit, and the Clean Heavy-Duty Vehicle Program.
Our customer base includes new entrants and established OEMs in the passenger vehicle, commercial vehicle, and transit bus segments. We have established our automotive business unit as a leader in composite solutions, providing our customers with lightweight structures and components that perform better than their metallic alternatives. The composites we manufacture make the vehicles more efficient through weight reduction, and improved corrosion resistance and thermal management.
TPI continues to invest in engineering and capital equipment to drive innovations into the manufacturing processes for our automotive business unit that focus on reducing waste and energy consumption as well as being able to extend our composite solutions for an even wider set of automotive industry applications.