Electric cars are closer than you think: EV the future?
With the right strategy and a functional partnership, companies can hopefully build and develop electric cars.
We estimate that electric cars will become so popular by the end of 2024 and companies shall have a competition with each other to manufacture these sorts of cars. During the pandemic, some obstacles have been made up against the advanced car manufacturing companies but everybody is optimistic and we can see a glory point by the end of 2028. Car producers gain opportunities and by some investment strategies and partnerships on a large scale, they can remove all the threats that are towards them.
Technology enterprises have confirmed and secured their efforts and successes in the matter of electric devices and tool manufacturers are seriously willing to keep up with them. For instance, one of the pioneer German companies called Mobileye has invested and built a driverless car and tested it on different highways and roads which came out with pride.
Companies must bring their needs and priorities to have a large investment on this matter. For example, two German companies called Daimler and BMW have invested in audiovisual technology in their cars. Its partner is Nvidia for developing software-based techs to produce automatic cars which can be driven on their own without any interference from a human being. Daimler and BMW are the only companies thinking about this in the world. Other countries in Europe like France and Italy are making their minds to develop automatic and AV (audiovisual) technology in their cars after the pandemic or even China is offering subsidies for electric car manufactures and tends to switch its car fleet to electric ones by the end of 2030. Soon in the future, all the companies that have invested in this matter will become each other’s competitors but no single enterprise would win this battle. They must all collaborate and become each other’s partners and each company must take part of the responsibility.
improving The Charging Timeline Of Electric Vehicles
Some of the authorities might ask if this technology is going to be common and well-known among ordinary people? Main companies are trying their best to invest in this matter and they already know that today is the right time. It is presumed that worldwide Electric Vehicles admission is going to be increased as the cost decreases step by step.
One of the main needs for EV is the number of recharging spots around a country. Although they have been augmented in Germany still many customers are afraid of lack of availability. China has been doing a better job in developing infrastructures and establishing new recharging spots for electric vehicles and its number is 1.5 times more than any electric stations in Europe and America altogether.
On the other side customers’ reliance on EV is another factor. Fortunately, some countries such as Norway have reduced the taxes for building and using EVs. Also, in the USA one of the models of Tesla was in the top-10 sold cars due to tax breaks. Following research, we assume that 50 percent of the car holders in America, Germany, and China have thought of electric vehicles in mind for their next car. With all these statistics, car builders know that they have a long way ahead. For example, those companies that are willing to participate in building EVs in China must gain good credit from eco-friendly industries so those EV technologies will be approved. In California, the rules are going to change by the end of 2035, and purchasing gasoline-based vehicles will be banned so many companies like Volkswagen have decided to manufacture various models of EVs by that time.
Of course, these rules and regulations will have a good effect on buying EVs in the future but it is going to need something more than just tax incentives but its cost must get reduced more and more again, and definitely, it should become cheaper than gasoline cars without government tax incentives. The price of the EVs must be as same as or even less than gasoline-based cars so the customers will have an interest in buying them. In Germany, the cost of buying and selling EV and gasoline-based vehicles are the same but on the other side, components of EVs are more expensive than other cars. The most expensive part is its battery which costs almost 30 percent of the whole expenditure. We estimate that the battery cost will be reduced as technology develops soon. In the end, the customer’s demand and advanced and modern EV technology will have the most influence on this industry.
Those enterprises that reach the goals (an affordable and reasonable EV without governmental subsidies) will have a large beneficial factor comparing to other companies. At least 12 percent of the whole car sales will be allocated to electric cars by the end of 2025 and we have figured out that more than 40 percent of car production will be electric by 2040.
Detecting The Correct Path For Automatic And Self-Driving Cars
Many car producers will have to transit their resources from gasoline-based vehicles to EVs and it means. Most of the cars nowadays are hybrid. It means that their source for energy is a combination of gasoline and electricity but recent research claims that low consumption software and aerodynamic hardware is more eco-friendly and different start-ups such as Silicon Valley are making enormous progress in this matter. We estimate that fully self-driving cars will be on the roads by 2028.
Two major autonomous vehicles should be produced. One for private driving which proprietorship is for ordinary people and the other one is the public transportation fleet such as taxis and buses. Different rules and regulations have important roles in this matter. On the other hand, customers must feel safe that no harm will happen to them. Many users have doubts about self-driving vehicles, mostly during bad weather conditions and this doubt will be diminished when people from all around the world test these sorts of vehicles.
Although the variety of users think it’s a long way ahead, we can assure them that this modern technology is processing so quickly and will change the way of transportation soon enough.
How Can Original Equipment Manufacturers (OEMs) Stay Competitive
OEMs have reached a hazardous spot where their productions have been reduced a lot in 2020 due to the pandemic and the decisions that they make will have a giant influence on them. And they already know that many industry partners are switching their partnerships towards advanced technology like EVs and AVs (audiovisual) so there will be a critical situation for investments. To reduce the risk and increase the chance of investments, there some actions need to be done:
Reduce the complexity of EVs for a better management
Pioneer vehicle manufacturers decrease their production rate and alternate their investments towards capabilities that differentiate the brand from customers.
Gian the attention of costumers in different sections
OEMs can communicate directly with customers through modern innovative business models like subscription services.
Make new partnerships with other modern companies
Partnerships can be so effective among the companies. It will help both sides to develop their pieces of knowledge and pearls of wisdom. Pioneer original equipment manufacturers can become self-determined for utilizing opportunities and managing the menaces.
Describe a situation in the modern chain value
OEMs must examine their current situation and capabilities and recreate new values.
Create end-user contact points
With new technology advances, producers must reach the wish and the experience of the customers.
Establish safe access to all technology levels
Based on the costumers all original equipment manufacturers must participate with other companies for the shape of technology and price minimizing.
The future of EVs and new technology is arriving as fast as it can but still OEMs can reach their competitors if they adopt a useful strategy.
Article by: Amir Masoud Navidi
Adapted from article by Bain & Company