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7 factors driving electric car market growth

Electric vehicle growth in the automotive industry is dependent on seven success factors.

Overview

Unlike traditional vehicles, electric vehicles require a different value chain and different processes to support them. Moreover, consumer perceptions of the practicality, functionality and the potential advantages of electric vehicles remain largely mixed in such areas as cost, savings, convenience, travel range and charging infrastructure.

To succeed in today’s electric vehicle market OEMs have to face various challenges.

 

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Read Accenture’s recommendations on the seven success factors that will enable electric vehicle growth in an evolving market. [PDF, 1.36MB]

Background

As the automotive industry moves through the second decade of the 21st century, uncertainty over whether or not electric vehicles will become a key part of the mainstream global car-buying market remains largely unchanged.

To succeed in the current business environment, OEMs will need to adopt new strategies to realize the full potential of the evolving electric vehicle market. One important factor will be integrating and collaborating with a group of diverse players, such as utilities, charging infrastructure owners, and mobility providers in a new mobility ecosphere.

RECOMMENDATIONS

Accenture has identified seven success factors to enable electric vehicle growth in an evolving market:

  • Government Regulations and Subsidies: Tightening CO2 emissions regulations and the investment of billions in subsidies and incentives by governments around the world is encouraging greater industry participation and adoption in the marketplace.

  • Integration of Electric Vehicles within the Product Portfolios of OEMs: The auto sector is close to the point where every major marquee is producing at least one electric vehicle model.

  • Collaboration within the eMobility Value Chain: Collaboration with a range of ecosphere players as partners in the electrification value chain will be critical to succeeding.

  • Relevant Charging Infrastructure: While OEMs are offering home-charging solutions with customer electric vehicle purchases, there is a lack of widespread public charging stations as of yet.

  • Reduction of Customer Anxiety and Marketing of eMobility Benefits: Consumers’ perception of electric vehicles will continue to play a major role in the evolution of the market.

  • eMobility as an Innovation Leader: Until recently, major automotive industry innovations were product-only related. Due to electric vehicles, many OEMs have undergone major changes in production as well as cutting edge processes and additional services.

  • Adjustment of Core Operations and Processes: OEMs will need to continue modifying their platforms to support a variety of fuel technologies to include gas, PHEV and full electric vehicles.