How the era of electric vehicles is changing many businesses

Innovative trends are changing the global essence of the global vehicle market. Electric vehicles are the new trend in our world. They are rapidly entering the market, making special adjustments to the development of the industry. To thrive and stay in business, auto market players must be mobile: and make quick decisions about how much of their business they want to expand, protect, or shut down.

For all participants in the automotive market, the last decade has been fraught with uncertainty. They balanced between fighting for survival during an economic downturn and tracking new strategic solutions for mobility and indispensable development. And now leaders are having to rethink almost every aspect of their business to stay ahead of the competition and continue to deliver innovative products.

The global market for electric vehicles

In the previous years, the number of electric vehicles and plug-in hybrids in the world rose to 7.9 million, an increase of 2.3 million compared to the previous year, and the number of new registrations reached the next maximum.

According to Deloitte forecasts, by 2025 there will be about 25-30 million electric vehicles in the world. The annual growth rate of electric vehicles will be 34% from now until 2025. At the same time, the share of cars with traditional internal combustion engines will decrease.

Consumers are increasingly interested in electrified powertrains. For example, 65% of consumers in China are interested in using an electric car. In Japan, the figure is 59%. In the US, 29% of consumers indicated they would choose an electric car over their next car.

Who will be affected by the potential of electric vehicle development

Car manufacturers

Equipping electric vehicles is much simpler than traditional cars. For their production, much fewer components are needed. By their principle of operation, they are more like computers that can move around. It follows that the assembly of electric cars requires less labor, physical effort, and specific components. Automotive industry players are increasingly faced with the problem of the economic feasibility of maintaining outdated production facilities and a large workforce.

Dealerships and maintenance market

The device of electric cars provides for the frequency of technical inspection every 20 thousand km. The resource for transmission and electric motor is much higher than for traditional cars. In other words, electric vehicles break down less often. The consequence of this factor will be a sharp reduction in the maintenance market, and a decrease in the supply of auto parts.

Auto parts manufacturers

The working life of an electric car (up to a noticeable loss of battery capacity) is approximately 800 thousand km. Translated into a temporary indicator, this is 40 years of experience as an ordinary driver. Electric vehicles are made from aluminum and stainless steel. These materials are practically not subject to corrosion. Consequently, the life of the car will increase significantly. A rare gasoline engine completes up to a million kilometers. The older a traditional car, the more money it takes to keep it running.

Oil industry & Petrol stations

More than half of the oil produced in the world is spent on the maintenance of vehicles. Power plants do not use oil. The displacement of traditional cars from everyday life causes a sharp drop in future demand for oil. This process will take at least a decade, but participants in the oil sector need to prepare for this new reality.

Tracking the prospects for the development of ecological vehicles, many gas stations have already equipped their facilities with electric vehicle charging stations. The environmental trend has stimulated the emergence of electric charging stations in parking lots, near cafes and restaurants, underground parking lots, offices, and modern residential complexes.

The emergence of high-speed express charging of electric cars is increasing, allowing for half an hour for the most massive electric car to receive a charge sufficient to drive another 200 km. Thus, when overcoming a distance of 400-500 km on an electric car, you will have to spend no more than an hour at gas stations. Drivers of traditional cars, overcoming such a distance, spend not much less time.

Conclusions

Despite the uncertainty of future events, it is clear that the market is not waiting. The impact of the transformation towards electric vehicles can be exacerbated by the prevailing environmental factors (reducing environmental pollution, increasing the life expectancy of mankind due to the absence of harmful emissions, and saving the planet's resources). The above are examples of how equipment manufacturers, suppliers, and new entrants are taking strategic steps that point to further transformation and transformation. The ever-evolving ecosystem provides executives with useful content to reflect on the portfolio of businesses they currently operate and the likely trajectories of their business in the future. Owners can analyze which businesses to run, which businesses they should cut, and which ones should be financed for growth. Automotive players can plan strategically to determine how to protect their market position or consolidate competitors to optimize costs.