OEMs have been successful in developing technology for e-mobility worldwide, with vehicles now ready for series production. The price of an electric car is thus falling sharply, as the e-mobility index for Q3 2013 from Roland Berger Strategy Consultants and Forschungsgesellschaft Kraftfahrwesen mbH Aachen (fka) shows. The index compares the competitive positions of the seven leading automotive nations (Germany, France, Italy, the US, Japan, China and South Korea) in the field of e-mobility. The indicators technology, industry and market were analyzed.
"The rising level of technological maturity means that there are fewer public subsidies for research into e-mobility," explains Wolfgang Bernhart, Partner at Roland Berger Strategy Consultants. "Instead, individual countries are trying to boost EV sales with targeted subsidy programs and expand the recharging infrastructure."
OEMs apply different market strategies
But in this early phase of launching EVs on the market, the international OEMs lack a uniform strategy. "The OEMs still need important information about customer behavior and preferences in various markets so they can define a clear business model," says Roland Berger Partner Thomas Schlick. For example, German OEMs tend to offer integrated mobility services such as car-sharing with the aim of passing on the high per-vehicle engineering costs to a larger number of individual users. Additional services should also help to cross-finance the high manufacturing costs.
By contrast, French OEMs' business models focus mainly on further reducing the purchase price for the end user. They are pursuing this goal by offering lower-tech cars and splitting off batteries from the selling price. For example, French OEMs help customers rent the battery and arrange contracts to supply cheap electricity. No dedicated business model is apparent in the Japanese market: Among Japanese manufacturers, electric cars are mainly niche products aimed at certain user profiles and regions. Instead, Japanese OEMs aim to develop the required charging infrastructure through cross-company collaborations.
In the US, by contrast, e-mobility has led to the emergence of many small and highly dynamic startups, mainly serving the premium segment. Some of these providers also provide free, comprehensive fast-charging infrastructure.
China: Local subsidies and joint ventures
The Chinese market offers very good prospects for EV manufacturers, with a huge number of potential buyers and a very dynamic political framework. But the spread of e-mobility in 25 pilot cities relies heavily on the numerous subsidies. There are multiple sources of support for the sale of EVs in China from the government, provinces and municipalities.
Experts predict new impetus through the launch of new local EV brands by Chinese-international joint ventures in the coming years. These joint ventures already account for 80% of the Chinese car market. "These companies will use their good market position in conventional models to quickly establish a foothold as an EV provider," fka Senior Engineer Markus Thoennes predicts.
In China and other emerging markets, OEMs must focus more on the particular customer needs of these markets. Small, inexpensive EVs are in high demand. "This type of model requires less power and battery range," says fka expert Markus Thoennes. "In emerging markets, low-voltage drive technologies for ultra-small cars could see a breakthrough and become an interesting technology option for European manufacturers and suppliers."
