The electric vehicle: More than a new powertrain
January 18, 2021
January 18, 2021
The number of EVs on the road is expected to reach almost 10 million this year, as sales grow despite the COVID-19 health pandemic.1 And amid the crisis, EV sales could reach a record share of the overall vehicle market for 2020.2
Original equipment manufacturers (OEMs) face growing pressure to address a dramatically shifting automotive industry and customer landscape:
Pushing the e-revolution along, EVs are becoming increasingly sophisticated. For example, Tesla Inc. pioneered the concept of selling wirelessly updatable vehicles, demonstrating that it is possible to transfer updates and new features to the vehicle much in the same way consumers download new software to their smartphones. Today, other traditional automotive manufacturers are following suit.
By 2025, all new vehicles are expected to be connected, and by 2030, 30% will likely be electric.
45% of car-sharing providers in Europe already operate a 100% electric fleet.3
Stringent CO2 emissions targets have driven European governments and automotive players to invest €60 billion in EVs and batteries.
By 2040, battery EV volume will put 10% to 15% of current OEM’s aftersales revenues at risk due to changing maintenance activities.
The electric revolution creates a new, evolving ecosystem that includes utilities, charging infrastructure developers, new mobility service providers and battery manufacturers, to name a few important categories. OEMs will have to work with new players and orchestrate the ecosystem to develop a consistent offering of vehicles, services and charging experience.
For example, Daimler has created a "live replacement parts store" for the fleet of third-generation EVs. The battery storage plant is available to the energy market to supply primary balancing power. Its modular design enables the system to continuously and automatically stabilize the power grid with balancing power. This solution is an example of how batteries could be turned into an opportunity for OEMs while supporting and integrating with utilities and grid operators.
The sustainability revolution is already underway, and the initial uncertainty over whether EVs will become a key part of the mainstream global vehicle market is over. The only uncertainty to manage now is over what role manufacturers will play in this revolution. Traditional OEMs that want to lead will need to double-down now.
1 Electric car sales this year resist Covid-19’s blow to global car market
2 As the Covid-19 crisis hammers the auto industry, electric cars remain a bright spot