2. Background
- Ernst & Young recently held various
roundtables around the world focused on
electric vehicle (EVs) adoption. The takeaway:
EVs are ramping, but before any tipping point
is reached a lot of collaboration and
technology milestones need to be reached.
• 2020 will see EVs hit the mainstream.
3. Factors
• Market forces, including government
support, the enabling infrastructure, customer
attitudes and the EV’s value proposition, will
determine the type of customer, as well as the
timing and trajectory of EV sales
• Batteries are critical to the EV equation. What
happens when a battery dies? Will customers fork
over high four-figure to five-figure dollar sums to
replace batteries? Will batteries lose their staying
power over time just like they do in your laptop?
4. 10 steps that are needed for broad EV
adoption.
• Players need to invest in systems and
infrastructure for EVs. Think smart grids. On the
consumer front, there may also be some
upgrades. Consumer Reports noted that you’ll
need 220 volt outlets in your home to get a
proper charge.
• Avoid showstoppers and make the transition
seamless for the consumers. We’ll get a feel for
this one as all those early adopters get EVs next
year.
5. • Interests must be aligned at all parts of the EV
chain.
• Government needs to stay engaged. The
government needs to take a roll in
development, funding, standards and policies
to drive EV adoption.
• Standards are needed to encourage economies
of scale.
• Batteries need to improve on the safety, pricing
and performance fronts.
6. • Delight EV owners. Ernst & Young argued that
word of mouth will be critical to drive EV
adoption.
• Cultivate first movers. That word of mouth
marketing will come from business and
government fleets as well as early adopter
consumers.
• Find new business models. EVs will require a
redesign of how vehicles are built, sold and
serviced.
• Collaboration is key between government,
industry and academia.
