Acceleration In The EV Industry: How Far Did We Come?
“Pandemic taught us the hard way that mainstream EVs will alter the automobile sector and contribute to the planet's decarbonization.” - Author.
Accelerating the EVolution:
For the electric vehicle industry, the jump from 2020 to 2022 was a wake-up call. Leaders and learners realised that EVs will revolutionise global mobility and play a critical part in the decarbonization of road transportation.
The EV adoption that was supposed to take ten more years significantly accelerated due to the ever-increasing need for the hour. In spite of the growing interest in this formerly specialist market and the increasing sales of electric vehicles, the industry is still far from reaching widespread adoption.
Customers throughout the world are still relying on ICE vehicles, and three in five (61 percent) of them are taking a "wait and see" approach when it comes to adopting an electric vehicle.
Despite this, especially in the face of the COVID-19 issue, the global market share of electrified cars, SUVs, and other light vehicles increased from 8% in 2019 to 12% in 2020, 18% in 2021, and has showed ongoing strength in early 2022 with steady support from governments and leading automakers.
How to fuel the Acceleration: The Loopholes
Electric vehicles are highly anticipated by consumers, but when will this transition take place? If the industry can overcome crucial barriers and ramp up capacity rapidly enough, widespread EV adoption could be only around the corner.
Let's take inspiration from the biggest EV market and understand the loopholes in the process.
1. SAFETY : The world's largest EV market is concerned about safety. According to research, 85% of Chinese consumers consider vehicle safety rating an important or extremely significant factor therefore lean on purchasing an EV.
2. ECO-CONSCIOUS: Concern about climate change and pollution is seen as a major driver of mass EV adoption in China. Along with switching from gasoline to electricity, Chinese customers want it to be produced sustainably, expecting it to originate from renewable sources.
3. RESPONSE TIME: Chinese buyers are the most eager to buy EVs, with an average purchase date of 2023. They believe that by 2027, the majority of Chinese customers would acquire EVs, three years ahead of the worldwide average.
4. PURCHASING POWER: Consumers in major Chinese cities are willing to pay $41,910 for an EV, roughly $6,000 more than the average. 67 percent of industry professionals say China is a priority for EV sales, followed by Japan (44%), and the UK (44%). (33 percent ).
Takeaways:
By analysing the leaders, we can observe how our loopholes are full of people who are still ignorant about electric vehicles and question their safety; also, the EV infrastructure plays a critical part in pivoting the evolution. People in affluent countries value their lifestyle and are more concerned about environmental issues, whereas in some parts of developing countries, uncivilisation and a lack of social responsibilities function as an ultimate barrier to EV adoption. Which also has an effect on the response time for acquiring an EV; individuals typically take time to assess the best option when selecting a vehicle, and those without sufficient purchasing power are less likely to embrace the need of hour.
The study examines five 'significant issues' that, if addressed, could significantly accelerate the mainstream adoption of electric vehicles: price, charge time, range, infrastructure, and vehicle selection.
While some models have addressed each of the critical challenges individually, consumer concerns about the critical challenges are impeding widespread adoption of EVs. The key to accelerating the EV market may therefore lie in convincing consumers that the electric vehicle future they desire is closer than they believe. Indeed, the future has arrived.
According to research, OEMs seeking to win market share should consider investing in improvements to address each of the five critical challenges. Price, charge time, range, infrastructure, and vehicle selection improvements will give OEMs a competitive edge and improve the user experience of owning an EV.
Transforming CHANGE
More sugar, less thorn.
Consumers are more motivated by incentives than by disincentives worldwide. There is a greater acceptance – and belief in the efficacy – of incentives for consumers to purchase EVs than there is for penalties for driving ICE vehicles. Nearly two-thirds of consumers (63 percent) believe that when governments introduce incentives such as tax breaks and subsidies for EV ownership, the majority of cars will be electric, compared to 56% who believe the same thing about penalties such as increased taxes on ICE vehicles. Regulation and legislation are already playing a critical role in making EVs more accessible and appealing to early adopters in several countries, such as Norway and China. Now it's the time for all of us. The road is only gonna get up and above!
