Electric Vehicles Drop in Price, but Most Remain Unprofitable
By MYBRANDBOOK
The automotive industry is under pressure to reduce emissions, both from government regulations and from consumers who are growing more conscious about the environmental impact of their vehicles. Electrified powertrains are a promising avenue to reduce or eliminate vehicle emissions for automakers. According to Lux Research’s report, “The Electric Vehicle Inflection Tracker: 2020 Edition,” most of automakers’ attention has been focused on making battery electric vehicles (BEVs) that are profitable while addressing consumer pain points related to charging speed and range.
“Consumers want to know, how far can this electric car go and what will it cost? Fortunately, BEVs are consistently making progress on how far they can go, with the average range now 230 miles. Since 2011, range has consistently increased, with a CAGR of 13.7%,” says Lux Research Senior Analyst and lead author of the report Christopher Robinson. “Prices have also gone down, with the average vehicle’s base MSRP in 2019 at $33,901, down from $42,189 in 2016. These changes are making it easier for consumers to own an electric vehicle.”
Robinson goes on to say, “Nearly all automakers now sell some form of BEV, so the focus has shifted to making them profitable. We’ve seen a large focus on electrifying high-priced brands. Luxury brands offer vehicles at higher prices points and are able to absorb the additional costs of the battery pack.” This is also partly due to the need to offset higher emissions of their larger internal combustion engines, which cause more emissions due to their vehicles being larger and more powerful.
Lux believes automakers should focus on their battery supply chain. Battery shortages have already caused some automakers to reduce their BEV production plans. To fix this issue, which will only be exacerbated over the next few years as more electric vehicles come to market, automakers should secure raw materials like cobalt and lithium for their future vehicles. Another key strategy is to balance platform flexibility against commitment. Large OEMs can afford to develop dedicated BEV platforms that save money, but smaller OEMs need to remain flexible to avoid taking a large financial hit if BEV sales are sluggish.
“Currently, BEVs are more expensive and less convenient to use than their nonelectric counterparts, but technology will continue to close this gap.” says Robinson. “We expect to see efficiency front and center as the next major focus of BEV design, with automakers either downsizing packs to increase profitability or offering more range.” As automakers continue to improve charging speed and minimize battery size, more consumers are expected to seek out electric vehicles.
Lux Research predicts that it will take until between 2035 and 2040 for electric vehicles to make up more than half of all vehicle sales. While adoption was tracking ahead of forecasts pre-COVID-19, Lux believes that impacts from the pandemic will only cause short-term setbacks
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Delivering Critical Business Communication Solutions to Enterp
Arya Omnitalk and Syntel’s comprehensive suite of solutions and more than
Cisco building a trusted and resilient future for the nation
Security is foundational to everything Cisco does and customers insist on e
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
CENTRE FOR DEVELOPMENT OF TELEMATICS (C-DOT)
LAVA INTERNATIONAL LTD.
HIMACHAL FUTURISTIC COMMUNICATIONS LTD.
DATA SAFEGUARD INDIA PRIVATE LIMITED
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Harsh Jain
Harsh Jain, the co-founder of Dream 11, the largest fantasy sports web...
Icons Of India : RAJENDRA SINGH PAWAR
Rajendra Singh Pawar is the Executive Chairman and Co-Founder of NIIT ...
Icons Of India : ALOK OHRIE
Alok Ohrie leads Dell Technologies’ India business, overseeing Sales...
PARTNER SPEAKERS
PSU
STPI - Software Technology Parks of India
STPI promotes and facilitates the growth of the IT and ITES industry i...
EESL - Energy Efficiency Services Limited
EESL is uniquely positioned in India’s energy sector to address ener...
DRDO - Defence Research and Development Organisation
DRDO responsible for the development of technology for use by the mili...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - REVATHI ADVAITHI, CEO- Flex
Revathi Advaithi, the CEO of Flex, is a dynamic leader driving growth ...
Indian Tech Talent Excelling The Tech World - Soni Jiandani, Co-Founder- Pensando Systems
Soni Jiandani, Co-Founder of Pensando Systems, is a tech visionary ren...
Indian Tech Talent Excelling The Tech World - Thomas Kurian, CEO- Google Cloud
Thomas Kurian, the CEO of Google Cloud, has been instrumental in expan...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
