Automakers face a difficult challenge: They must strike the right balance between selling enough electrified vehicles (EVs) to comply with tightening regulatory fleet emissions and fuel economy targets, while preventing the incremental cost of adding costly battery packs to their vehicles from cannibalizing corporate profits. To compound matters, automakers cannot afford to lose focus on combustion engine models, which are often more profitable. Against this backdrop, our latest report provides fresh insights and potential solutions.
Electrifying insights: How automakers can drive electrified vehicle sales and profitability
Electrifying insights: How automakers can drive electrified vehicle sales and profitability
Within this report, McKinsey is releasing new findings from a global survey on consumer attitudes toward EVs that include plug-in hybrid and battery electric vehicles. Our analysis reveals current pent-up consumer demand for EVs with some stubborn and well known barriers, but also provocative and unexpected opportunities. The report highlights three key messages:
- Consumer demand is starting to shift in favor of electrified vehicles and has strong disruption potential
- Automakers will need greater agility to address challenges that hinder EV profitability
- Automakers can "electrify" their customer base – more profitably – by offering more tailored EVs and deploying new business models
If you would like to discuss the findings of this report, please contact one of the authors below:
- Stefan M. Knupfer – Senior Partner, Stamford
- Russell Hensley – Partner, Detroit
- Patrick Hertzke – Associate Partner, Detroit
- Patrick Schaufuss – Engagement Manager, Munich
To download the report, please click on the link below.