Battery Electric Vehicles has been added to your bookmarks.
In 2018, electric vehicle (EV) production hit a milestone with approximately 2 million units sold globally. By 2030, we forecast a 950% increase to 21 million units, with battery electric vehicles (BEVs) accounting for a substantial 70% of global sales in the EV market.
Technology, government incentivisation and a shift in consumer behaviour are some of the factors in the growth of the EV market. Our research shows by 2022, technological advancements will put the cost of owning an EV on par with traditional petrol or diesel vehicles. This will eliminate one of the greatest barriers to purchase, boosting demand and increasing market growth.
The potential for EVs has attracted an influx of new entrants, predominantly from or operating in China. With the majority of OEMs also announcing their ambitions in the EV market, we predict that the number of manufacturers is unsustainable.
Based on our analysis, by 2030 overall industry capacity will surpass consumer demand for EVs, creating the widening ‘expectation gap’ seen here in a figure extracted from our report.
Given the projections, it is possible that some incumbent OEMs may go out of business beyond 2030, while many EV start-ups are unlikely to survive. As the automotive landscape changes how can auto business remain competitive? Our report identifies five key areas where EV manufacturers will need to develop a competitive advantage. Below you will find each one, with suggestions on how manufacturers could choose to do this.
Brand – An established customer base and global footprint may prove advantageous to incumbent OEMS, but also present potential pitfalls. Learn the importance of brand positioning and credible green credentials.
Customer experience – An important feature to consider in the auto industry, understand how to overcome the complexities of EV maintenance and capitalise on a unique aftersales requirements.
Production strategy – The battery is the most expensive, yet indispensable component of an electric vehicle. Explore our recommendations on building a strong battery production strategy and the importance of building strategic partnerships.
Talent – Innovation and technological capability will distinguish your end product from others in the EV market. Learn why we emphasise investment in expertise to strengthen your talent pool.
Business model – To keep pace with evolving customer needs, versatility is key. Understand the merits of the ‘ownership’ vs ‘usership’ model, and why moving away from the traditional may be necessary.