In terms of the standard life cycle of business, the electric vehicle industry is well within the growth stage. And, it isn’t just experiencing incremental growth but a very significant one at that.
Forecasts describe the electric vehicle’s compounded annual growth rate (CAGR) for the period 2019 to 2030 at an amazing 21.1%! From an estimated 3.3 million units of EV sold in 2019, sales in 2030 are projected to be 26.9 million units. The future looks rosy for the EV industry.
A lot of expectations are on the electric vehicle for it to bring down the emissions from cars, which are at present at alarmingly high levels and largely contributed by traditional fuel-powered vehicles. The fuel consumption of these fossil fuel vehicles and the resulting CO2 emissions are widely accepted as triggers to global warming from air pollution.
Players that Support Electric Vehicles
Governments are pinning their hopes for reduced and possibly zero-emissions from EVs by the end of the 21st century to positively impact the environment. For this reason, they are developing favorable policies and support in terms of grants and subsidies, tax rebates, and other non-financial benefits and privileges to early adopters. They are also developing strong supportive infrastructures like charging points to increase the demand and boost the mass adoption of EVs.
The countries leading the charge for EV usage growth are the US, China, Germany, and Japan, where major EV companies are located right now. Some of the countries that have aggressive targets of full internal combustion engine phase out or 100% zero-emission vehicle (ZEV) car sales are Norway (by 2025); Denmark, Iceland, Ireland, Netherlands, and Sweden (by 2030); The UK, France, Canada, and Singapore (by 2040); and Germany, 10 states in the US, and Japan (by 2050).
The initiatives from EV manufacturers and support industries are making the transition to the more ecology friendly electric vehicles smoother. The major OEM players in the EV currently are the following:
US company Tesla has recently become the world’s largest electric automaker based on cumulative sales, surpassing BYD. It has delivered 807,954 electric vehicles as of October 2019. Tesla Model 3 is also the world’s best selling electric car ever, with more than 500,000 sold by March 2020 overtaking Nissan Leaf. The company initially focused on mastering passenger electric cars but is now starting to diversify with trucks and batteries.
For the past four years, China’s largest EV manufacturer held the record as the world’s largest EV manufacturer until recently. Their sales include all-EV and plug-in hybrid vehicles (PHEV). The company, which has delivered 787,150 vehicles as of December 2019, is taking a diversified approach with passenger vehicles, trucks, buses, and even producing its own battery cells.
Headquartered in Japan, Nissan has sold the most EVs of any manufacturer worldwide until recently when Tesla overtook their cumulative sales. Their electric car offerings are led by the Nissan Leaf, one of the world’s most recognizable electric vehicles.
BMW / Great Wall Motors
A top German car company that produces luxury cars, BMW has entered the electric car market with the BMW i3, an all-electric luxury SUV developed with a compact 5-seater design intended primarily for urban and suburban traveling. In 2018, the BMW Group announced a partnership with Great Wall Motors to produce ORA electric car brand in China. The ORA R1 is reputed to be the world’s cheapest EV.
The German car company has developed new products, undertook collaboration, and adopted expansion strategies with Nissan to gain traction in the high-growth electric vehicle market.
GM / Chevrolet
Chevrolet is the automotive section of American company General Motors selling a wide range of vehicles worldwide. Among the first American car companies to venture into EV, Chevy’s first foray into the all-electric car market is the Chevrolet Bolt. The car offers over 220 miles per charge. GM has announced that it plans to make Cadillac its lead electric vehicle brand starting in 2021.
Mercedes-Benz has partnered with China’s Geely in the design, manufacturing, and engineering of Smart, the first car brand to switch to an all-EV lineup. With the venture, Mercedes-Benz’s electrification ambitions can now be more easily achieved.
The NEV division of the Chinese car manufacturer Chery, a key player in EV in the Asia-Pacific region, has been offering an all-electric 3-door hatchback supermini car since 2016, the Chery eQ1. It is a low-price range EV.
Governments and private sectors are working hand-in-hand to facilitate the transition to the more beneficial electric vehicle technology. Additionally, stakeholders in EV realize that adopting a more eco-friendly technology is a clear positive move on the CSR front, which can help to strengthen brand values, creating a competitive advantage in increasingly crowded marketplaces.