Electric vehicle production to increase tenfold by 2025
Frost & Sullivan's research, “Electric Vehicle Platform Strategy of Global Passenger Vehicle OEMs, Forecast to 2025,” explores platform strategies that key global OEMs are expected to adopt, as well as their approach toward electric vehicle (EV) infrastructure. It also presents the comparative analysis of OEMs' future EV platform strategies and popular trends that arise as a result of the introduction of dedicated EV platforms.
Long-range electric vehicles are experiencing increasing demand due to strict emissions guidelines. One way to improve range is to underpin future battery electric vehicles (BEVs) on dedicated electric vehicle platforms. Frost & Sullivan's analysis finds that these dedicated platforms are expected to significantly reduce range anxiety among customers as they will allow OEMs to offer long-range EVs. Further, OEMs will be able to achieve greater sales that will enable them to meet future emission regulations.
"Over and above the investment on dedicated platform development, OEMs still need to invest in battery technology and charging infrastructure to push EVs to customers. We are already seeing the urgency for OEMs to embark on backward vertical integration in order to build in-house capabilities to manufacture electric vehicles," said Vishwas Shankar, Mobility Research Manager at Frost & Sullivan.
Some of the industry challenges center on the high cost involved in developing electric vehicle platforms, as well as how to balance vehicle portfolios between vehicles on internal combustion engine (ICE) platforms and vehicles on dedicated EV platforms. Significant investment has gone into developing ICEs and dedicated platforms; therefore, OEMs need to find the optimal product mix to increase return on investment from all platforms while also meeting emission regulations.
Indications are seen that China will become the largest EV market by 2025, followed by Europe and North America. Therefore, opportunities exist for key global OEMs to increase market share by partnering with Chinese OEMs to develop China-specific models on dedicated platforms.
"By 2025, the average unit of electric vehicle production per platform is expected to increase roughly 10 times compared to today's production. Volkswagen, Renault-Nissan-Mitsubishi, and Daimler are expected to be the leaders in electric vehicle production," added Shankar.
“Electric Vehicle Platform Strategy of Global Passenger Vehicle OEMs, Forecast to 2025” is part of Frost & Sullivan's global Mobility Growth Partnership Services program.
For further information on this analysis, visit http://frost.ly/27v.