Home » McKinsey & Company study reveals challenges within the EV segment
Electrification represents the biggest technological development in automotive power trains in decades, yet there is still significant uncertainty as to when actual, large-scale adoption of electric vehicles (EVs) will occur, reports McKinsey & Company. The company states there is currently a lack of the systematic, fact-based investigation of e-mobility-industry dynamics necessary to understand what is still holding back the mass-market adoption of EVs and what is required to finally get it off the ground.
“The Road Ahead for E-Mobility" study by McKinsey & Company reports that 51% of customers in Germany seriously considered an electric car when buying their latest car, but only 3% opted for such a vehicle in 2019. Additionally, 36% of these customers decided not to use the electric variant due to perceived uncertainty about the reliability and service life of the battery, as well as the lack of charging options. Twenty-seven percent cite the higher acquisition costs as the reason not to purchase an electric vehicle. The range (16%) and lack of model selection (8%) play a secondary role in the decision. As a plus, those interested in e-cars and actual buyers mention driving characteristics, such as acceleration, as the main added value. Incentives such as purchase bonuses, tax benefits, and free parking (25%), as well as lower total operating costs (22%), speak in favor of this group for electric cars. Environmental protection is only decisive for 15% surveyed. For the analysis, more than 12,000 consumers in Germany, Norway, China, and the U.S. were surveyed and test purchases were carried out in almost 60 car dealerships with eight brands in three countries.
Worldwide, market research shows EV sales approaching 2.3 million vehicles, with market penetration of 2.4% in 2019. The annual growth in market penetration from 2016-2019 was 41%. The largest and fastest-growing market for EVs is the Asia-Pacific region.
The July issue features a deep dive into the Xpeng P7 EV, sensors for SAE Level 4 and 5 autonomous driving standards, what’s needed to build consumer confidence in autonomous vehicle technology, and how Smart Cities can prepare for fully autonomous vehicles.