Strategy Analytics: Automotive OEM Strategies Moving Towards Mass Electrification
BOSTON--(BUSINESS WIRE)--Nov 19, 2019--
The Strategy AnalyticsPowertrain, Body, Chassis and Safety (PBCS) service report, “ OEM Hybrid and Electric Vehicle Strategies: Investments, Alliances and Restructuring, Move to Mass Electrification Begins,” tracks the 2019 announcements of new lithium-ion battery cell production capacity for automotive demand, equating to more than six-times the automotive capacity of Tesla Gigafactory 1. This is the result of many auto makers that have recently announced major increases in their investment in electrification.
The Volkswagen Group has revised its “Roadmap E” plan to 2023, so that investment into electrification was increased to $50 billion. It is targeting cumulative sales of battery electric cars to reach 22 million units by 2028, instead of an earlier announcement for 15 million. But such an announcement is not only contrition for its role in the 2015 “Dieselgate” scandal, but also to comply with tougher mandates in Europe and to compete against other auto makers, such as the once start-up, but now volume auto maker, Tesla.
“This is among many announcements leading to increased demand for batteries and other electrified powertrain systems, but will also bring about much-needed economies of scale and the necessary cost reductions to make electric vehicles more affordable to consumers,” said Kevin Mak, Principal Analyst at PBCS, “as purchasing incentives dwindle and amid the general softening in recent car sales.”
He added, “Auto makers will need to strive that extra mile in order to make electrification a success, such as through collaborations, streamlining production, supporting charging infrastructure and in developing new business models to counteract declining dealer revenues in service and maintenance.”
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Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com.
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PUB: 11/19/2019 10:27 AM/DISC: 11/19/2019 10:27 AM