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Electric Vehicles: Ready to go mainstream

China, US hold biggest potential for EV sales, but demand in Canada, Europe, Japan and Korea set to rise, Accenture research finds.

Overview

Improving market conditions are creating strong potential for growth in electric vehicle (EV) sales in China and the United States. But a combination of technological, economic and political factors, including the influence of more planned mass-market EV introductions over the next four years, could provide car-makers with nine additional growth markets to invest in.

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Background

Accenture analyzed 14 domestic markets—Brazil, Canada, China, France, Germany, India, Japan, the Netherlands, Norway, Russia, South Korea, Sweden, United Kingdom and the United States—to pinpoint the crucial distinctions that shape EV market attractiveness.

EV Market Attractiveness is defined as the degree to which—from a customer perspective—the purchase of an EV instead of a conventional vehicle is a more attractive option, in both monetary and non-monetary terms. It depends on factors that are either market-specific (typically governmental regulations and subsidies) or non-market-specific (e.g., battery range). Non-market-specific factors influence the global attractiveness of the EV market and affect all domestic markets to a similar extent.




Key Findings

All countries were ranked against technological, economic and political factors, then placed into a matrix. China and the United States ranked as Best-in-Class countries because they showed both high EV market size and EV market growth. Factors in their ranking include the future volume of a high number of buyers who will be able to afford EVs, and the development of an extensive charging infrastructure.

China and the United States are the two markets that Accenture believes automakers should target for investment in stronger distribution networks, while adapting product portfolios to cater to specific customer preferences.

Canada, France, Germany, Japan, the Netherlands, Norway, South Korea, Sweden and the United Kingdom are all ranked as High Potentials for their high growth prospects between now and 2020, but have a low EV market size currently. They are typified by government plans to invest significantly to make EVs more attractive.

The Accenture EV Market Attractiveness framework analyzes selected domestic EV markets to provide insight into key factors that are driving EV market growth. EV Market Attractiveness is defined as the degree to which—from a customer perspective—the purchase of an electric vehicle instead of a conventional vehicle, in both monetary and non-monetary terms, is a more attractive option. It depends on factors that are either market-specific (typically governmental regulations and subsidies) or non-market-specific (e.g., battery costs).

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