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uture-ready OEMs know that suppliers are in control of the technologies they need, and true collaboration is the only way to manage risk and drive innovation.
Figure 1: Where value is created: old vs. new
In a traditional setup the OEM produced the parts of high strategic values for their customers inhouse. In the last years this changed dramatically. Immense efforts are necessary to regain power over key-characteristics of the product
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rom today’s 6% EV market share to the single biggest EV opportunity after China. More than 30 million EVs sold cumulatively in the US by 2030. Higher growth rate than any other geography. In this second part of the EV study, we shed light on whether US EV actually constitutes a ‘gold rush’ opportunity for everyone.
(2018-2022, %)
1) VW earnings through Q3, 2022
Source: Tesla, Volkswagen AG, Ford, Berylls
Judging by today’s metrics, Tesla is well positioned to take advantage of the US’ EV growth potential. Tesla currently has a 63% share of the EV market including EV SUVs and displays superior profitability – the second biggest player (Ford) has a 6% share1. Tesla’s profit margin over the past 5 years has increased significantly, and now exceeds Ford’s and VW Groups’. This can be attributed to the growing economies of scale, new manufacturing technology (e.g., use of large castings), and smart insourcing of selected supply chain elements (e.g., battery manufacturing)15. Most importantly these margins now provide Tesla with breathing room for tactical price movements (e.g., see Tesla’s movements in China16).
With the shared mission of unseating Tesla, OEMs are tripling the total number of EV models by 2025 and the number of OEMs offering EVs is set to double by 2030. The ICE leaders GM, Ford, Stellantis are also expected to grow massively in EVs. Volkswagen has bet the farm on them. And even EV-laggard Toyota is expected to play a key role with a projected EV market share in the 10 to 15% range. For all these contestants navigation of the specific needs of the US EV customer and geographical landscape is key to enhance EV profitability and unseat Tesla as the US EV leader.1
California is the market model: More EVs sold than in any other state, 34% of all 2022 US EV sales1,17, second highest charging point density of 128 points per 100,000 licensed drivers and the first state to introduce clean vehicle legislation in 1990. California’s success in the EV game can be attributed to early and continuous adoption of EV-forward policies and regulations18, public and private purchase incentives, and a vast charging infrastructure. To scale EV, manufacturers need to identify regions that follow the Californian model in optimizing the subsidy, infrastructure, and policy triangle.
OEMs should focus on areas where the triangle is complete, which is rarely found at the state level so OEMs ought to go deeper to a regional level. When applying the triangle principle, OEMs should assess population density as it skews the charge point per population metrics. For example, the state of Washington has a small number of public chargers per licensed driver and limited state subsidies, but a high EV penetration rate, primarily due to a high density of chargers around Seattle and limited infrastructure throughout the rest of the state. The state of Colorado has higher number of chargers per licensed driver and more subsidies than Washington, but significantly lower EV market share, due to a smaller number of residents throughout the state and more dispersed pockets of EV infrastructure. In addition, city-level incentives like charging infrastructure subsidies and access to parking discounts (e.g., Sacramento)19 play a role at the municipality level. OEMs should also weigh the consumer demographic and psychographic differences within regions. For example, Chicagoland (Cook County plus surrounding counties) residents live in more densely populated areas and, on average, have a higher income than downstate Illinois20. OEM’s segmentation of target markets needs to go deeper than state level to reflect local particularities in population make-up and public support.
(2021, by state)
Source: Alliance for Automotive Innovation, WLRN, Berylls
Looking beyond cities and regions, both the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) will have a profound effect on the EV landscape nationwide with over $100bn in total investment – nearly 30x more than government investment to date21. While the BIL will significantly boost nationwide EV infrastructure and grid upgrades, the IRA has more direct implications for OEMs and consumers. With the IRA, OEMs have access to both consumer and production-related incentives, which are conditional on their supply chain and production setup as well as pricing policy. For consumer tax credits, incentive eligibility is conditional on vehicle price, battery mineral sourcing, and battery production and vehicle assembly location. For production incentives22, eligibility is based on production profile for each individual project (e.g., for the Advanced Manufacturing Production Credit, eligibility hinges on production of battery cells or modules with a capacity-to-power ratio not to exceed 100:1)23.
(by affected value chain element)
1) Lithium iron phosphate batteries; an alternative battery chemistry option for customers to in addition to Ford’s existing nickel cobalt manganese (NCM) battery option
Source: The Inflation Reduction Act of 2022, US Department of Energy, Reuters, Alliance for Automotive Innovation, Ford, Berylls
The IRA has an impact on the automotive landscape on the macro and micro level. At the micro level, players will need to make a choice whether to increasingly focus on the US market to access funding (e.g., Hyundai has announced acceleration of EV plant construction in Georgia and reconfigured its battery supply chain). At the macro level, other countries (especially the EU) will need to compete with the US to attract local production (e.g., Tesla scaled down plans for Berlin production in favor of the US because of IRA incentives24; VW announced the ramp-up of a battery plant in Canada)25. The IRA is expected to necessitate stronger local and regional presence and OEMs will need to reevaluate their global production value chain.
The US automotive market is dealer-dominated. Franchise law protects dealer access to the market. Although Tesla has managed to implement its direct sales model in some states, realization of direct sales will continue to be contested (see e.g., Tesla v. the State of Louisiana), more cumbersome for new entrants (e.g., entry needed to happen before 2015 in Georgia) and allow a ‘patchwork footprint’ at best. Direct sales regulation will also continue to evolve – with the regulation of EV infrastructure and connected services sales still to be defined.
Considering customers’ education and perception gap, the complexity of the regional US landscape and the vast (aftersales) footprint to be serviced, OEMs need to closely examine the tradeoff between going fully direct and being able to depend on a strong (dealer) partner to really cover a market and bridge the gap to the customer.
(2021, extent to which direct sales are permitted in the respective state)
Source: National Conference of State Legislatures, Berylls
The question for OEMs, suppliers, dealers and other automobility players is one of how not if to participate in the US EV market. The US will become the second biggest single EV market by 2030 and will be growing faster than any other region. The specific demands of US customers (e.g., emphasis on fuel economy, residual value, TCO) will necessitate a US-centric (SUV) product strategy, which goes beyond derivatives of Europe/Asia-focused platforms.
New entrants and niche manufacturers face the additional complexity of having to realize sufficient volumes of such local products for scale economies, while keeping the costs of ramping-up the supporting sales/after-sales footprint to a minimum. The price sensitivity of US customers coupled with the superior profitability of the current market leader Tesla and stringent localization requirements for securing IRA subsidies will make demystifying the IRA and the configuration of EV value chains a key success factor. The heterogenous regional policy, infrastructure and customer regional US landscape favor the cooperation with a strong local partner. The Inflation Reduction Act is the United States’ holistic answer to other nations’ industrial policy. Succeeding in the US EV market beyond its niche existence will necessitate similarly holistic strategies of new and incumbent players alike.
Source: Berylls
You missed the first part of the blog article? Click here to read part 1.
Sources:
1 Berylls Strategy Advisors analysis and extrapolation including (among others) sales data from S&P Global Mobility Light Vehicle Sales April 2022 as well as production nameplate and propulsion system design data from S&P Global Mobility Automotive Light Vehicle Transmission + Engine Forecast, April 2022.
15 Lienert, P., & White, J. (2023, January 19). Analysis: Tesla uses its profits as a weapon in an EV price war. Reuters.
16 Reuters. (2023, February 16). Tesla raises prices of some Model Y versions in China. Reuters.
17 Sales figure from Source 1, State sales share from: Alliance for Automotive Innovation. (2022, December 21). Electric Vehicle Sales Dashboard. Retrieved from Alliance for Automotive Innovation: https://www.autosinnovate.org/resources/electric-vehicle-sales-dashboard.
18 1990 Low Vehicle Emissions regulation to 2022 Advanced Clean Cars regulation
19 City of Sacramento. (n.d.). Electric Vehicle Parking. Retrieved from City of Sacramento: https://www.cityofsacramento.org/Public-Works/Parking-Services/Discount-Programs/Electric-Vehicle
20 Chicago Metropolitan Agency for Planning. (2022). Cook County Community Data Snapshot. Retrieved from https://www.cmap.illinois.gov/documents/10180/102881/Cook%2B-%2BALL.pdf/02b2d251-63e3-bcec-fe0f-4788f681d4af?t=1659382994909
21 Burget, S. (2022, September 2). EV eligible funding in IIJA and IRA represents nearly 30 times the total EV funding awarded by U.S. government to date. Atlas Public Policy EV Hub.
22 E.g., Advanced Manufacturing Production tax credit, Advanced Energy Project Credit, Advanced Technology Vehicle Manufacturing DOE loans, and Domestic Manufacturing Conversion Grants
23 Bloomberg Tax. (2022). Sec. 45X. Advanced Manufacturing Production Credit. Internal Revenue Code.
24 Reuters, Automotive News. (2023, February 21). Tesla scales back German battery plans, won over by U.S. incentives. Retrieved from Automotive News: https://www.autonews.com/automakers-suppliers/tesla-scales-back-german-battery-plant.
25 Schwartz, J., & Waldersee, V. (2023, March 13). Volkswagen picks Canada for first battery cell plant outside Europe. Retrieved from Reuters: https://www.reuters.com/business/autos-transportation/volkswagen-build-first-north-american-battery-cell-plant-canada-2023-03-13/.
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ig 4 Global Truck Manufacturers with record sales, revenues and profits in 2022
The global truck manufacturers Daimler, Traton, Volvo and Paccar have achieved record sales, revenues and profits in 2022. They have earned cumulated 12.3 bn Euro in 2022 – more than ever before. This equals an average return on sales (RoS) of 8.5%. Main drivers were substantial price increases, excellent after sales revenues as well as favorable exchange rates.
There is a clear benchmark in performance and profitability: U.S. based Paccar group with its subsidiary DAF in Europe. The German players Daimler and Traton are well above pre-crisis level, but still far less profitable than their peers. While Daimler suffers from below average profitability of their Asian business, Traton still has homework to do regarding the turnaround of MAN.
Market outlook for 2023 is positive, but ongoing industry transformation requires significant cash flow from the operative business. Focus must be on portfolio management of the increasing zero-emission product offering including comprehensive e-mobility services.
Check our FY 2022 Review and reach out to the team for more details.
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he time in which electric cars had been a phenomenon limited to the west coast tech community is over – in a market where a V8-powered pickup truck has long epitomized people’s perception of a car, electric vehicles (or EVs) made up 6% of US light vehicle sales in 2022. And more than 30 million EVs will have been sold cumulatively in the US by 2030 , when the country will likely be the biggest single EV market after China.
(by country, general customer)
Source: Ipsos 2022 Mobility Navigator Module 1, Berylls
Incumbents and new entrants face a US EV customer that is significantly different from its European and Chinese counterparts. An international survey of customers shows that while US customers only cite ‘economic’ reasons as their top three purchase criteria, Chinese customers also place a premium on safety and sustainability while German customers love the thrill of driving. While US customers generally have an affinity for digital channels during the research and vehicle configuration stages of the customer journey, they still have a stronger preference for dealership visits when interacting with salespeople and completing the purchase or leasing of a vehicle; Only 58% of US customers are interested in contacting salespeople online2.
(by US customer persona compared to US general customer)
Source: Ipsos 2022 Mobility Navigator Module 1, Berylls
Beyond international differences, there are also three distinct attitudinal groups among US car buyers. Early EV adopters (current EV owners), EV considerers (those strongly considering EVs as the next purchase) and EV skeptics (currently not considering an EV) differ significantly in terms of their socio-demographics and top three purchase criteria. While EV adopters care about CO2 emissions and environmental sustainability, EV skeptics and EV considerers put a stronger weight on functional and economic aspects when evaluating EVs.
Yet, US buyers (especially skeptics) are contradictory. In the Ipsos 2022 Mobility Navigator EV survey, US buyers cited good fuel economy, maximizing residual value, and low total cost of ownership (TCO) as their top three vehicle features. However, in reality the F-150 – the top-selling vehicle in the US – is among the lowest of any car sold in the US3 in terms of fuel efficiency (range of EPA-estimated combined fuel efficiency of 12-25 MPG depending on trim)4. It becomes clear that beyond economic factors the size and versatility of vehicles are clear purchase drivers for the US population. Fortunately, it is not an absolute necessity to convince the skeptics in the next few years – the segment of considerers is large enough to fuel the EV growth until 2030 and will certainly expand as EV technology shifts toward mainstream prominence.
Today, even EV considerers see a gap between their willingness to pay and current EV prices. 36% of US customers said vehicle sticker price is a top three purchase factor, and 48% of customers say they are not willing to pay a premium for an EV2. Yet the December 2022 average transaction price of an EV was $12,0005 more than an ICE vehicle6. While Tesla and Ford (among others) have recently cut MSRPs on the Model Y (up to 20%)7 and the Mach-e (up to 9%)8 respectively, the ‘price-willingness to pay delta’ coupled with slim profit margins will require OEMs to move beyond the tactical (pricing) level. A sustainable EV business model will benefit from significant advances in OEMs’ supply chain and production (e.g., EV vs. ICE price competitiveness is expected when battery cost falls below $100/ kWh9) and smart exploitation of purchase and production incentives (see the second part of our series for further details).
Considering the high share of vehicles financed or leased in the US (above 80% over the last three years)10, monthly payments may play an even stronger role than list prices. Narrowing the current delta between gasoline and EV leases ($337) and loans ($210)7 requires OEMs to increase residual values of vehicles – e.g., through advancements in battery durability, parts quality and vehicle certification. In addition, creative expansion of their businesses along the vehicle’s life will further contribute to attractive BEV economics.
(% of respondents, by US consumer persona)
Source: Ipsos 2022 Mobility Navigator Module 1, Berylls
While price deltas between ICE and EV are (still) factual, other differences are (only) perceived by customers – particularly in terms of driving range and cost benefits. Customers’ minimum range requirements differ by persona. Unsurprisingly, BEV skeptics have the highest range requirement while BEV considerers have the lowest. Most early adopters state a requirement of under 300 miles. As so often in car buying, buyers’ stated requirements are based on the exceptional use, considering the average daily driving distance in the US is only 25 miles2. While the evolution of battery technology (and thus increase of range and reduced charging time) may narrow parts of this gap, customer education and practical experience will be paramount in addressing customers’ greatest EV concerns around range and charging anxiety, affordability and product availability to turn skeptics into adopters. While OEMs have to carry customers to the brink of consideration, dealers will be key in familiarizing customers with the practicalities of EV infrastructure and pros and cons against their gasoline counterparts. Federal and state governments can play a supporting role reassuring customers around EV incentives and infrastructure.
Communication to customers will similarly help to underline EVs (potential) TCO advantages. 40% of BEV skeptics say that a concern about owning an EV is higher TCO. Yet, for two models of similar segment and size, an ICE vehicle can be more than 20% more expensive to run depending on the length of ownership11.
The gaps in perceptions and buying preferences are narrowing fast in the US. Over the last three years, the proportion of US buyers contemplating an EV for their next purchase is up to 49% (up 19 points) compared to both Chinese buyers (72%, up 7 points) and German buyers (37%, up 14 points)2. The race is on.
(2021-2030, in thousands of units)
Source: Berylls Strategy Advisors analysis and extrapolation including (among others) sales data from S&P Global Mobility Light Vehicle Sales April 2022 as well as production nameplate and propulsion system design data from S&P Global Mobility Automotive Light Vehicle Transmission + Engine Forecast, April 2022
While the current US EV share cannot compete with Europe, the US will battle the EU5 for the runner up position behind China in volume terms – with both regions forecasted to show annual EV sales above 6mn units by 2030. With the Inflation Reduction Act aiming to provide an answer to China’s Made in China 2025 initiative and the Detroit Three announcing investments of more than $115bn in electrification by 202612, the US is positioning itself to move from EV niche to necessity. EVs are forecasted to grow quicker in the USA than in any other market (34% CAGR 2021-2030) vs. China (22%) and EU5 (33%)1. Considering this growth and the substantial size of the US EV opportunity combined with US customers’ explicit and implicit product requirements, OEMs can no longer treat the States as another platform to sell their Europe/China-centric vehicles – a dedicated (product) strategy is required.
(2021 vs. 2030, in thousands of units)
Source: Berylls Strategy Advisors analysis and extrapolation including (among others) sales data from S&P Global Mobility Light Vehicle Sales April 2022 as well as production nameplate and propulsion system design data from S&P Global Mobility Automotive Light Vehicle Transmission + Engine Forecast, April 2022
By the end of the decade, EVs will have taken around a third of the US market. That also means that the US market for internal combustion engine (ICE) vehicles is set to shrink, and fast. In parallel a substantial part of the EV capacity will come from newly constructed EV plants – Tesla, Polestar, Lucid and VW, among others, have all announced or begun large capacity EV projects in America. Legacy ICE capabilities across the value chain therefore face a tremendous transformation challenge; the majority of automotive CEOs are concerned about capability gaps in their organization13. Upstream EVs will require new chassis, body-in-white, E/E and e-drive capabilities (among others). The ramp-up and holistic industrialization of these capabilities will be the deciding factor: From the shopfloor to the board room and back again.
(2021-2030, in thousands of units)
Source: Berylls Strategy Advisors analysis and extrapolation including (among others) sales data from S&P Global Mobility Light Vehicle Sales April 2022 as well as production nameplate and propulsion system design data from S&P Global Mobility Automotive Light Vehicle Transmission + Engine Forecast, April 2022
Also, downstream the impact is already visible: the reactions by dealers range from going all into electric to leaving the party (e.g., GM). OEMs have begun dealer EV certification levels (e.g., Ford) and more fundamental (online) shifts to the sales process (e.g., Acura).
The question for OEMs, suppliers, dealers and other automobility players is not if and when, but how to participate in the US EV market now. The US will become the second biggest single EV market by 2030 and will be growing faster than any other region1. The specific demands of US customers will necessitate a US-centric product strategy, which goes beyond derivatives of Europe/Asia-focused platforms. New entrants and niche manufacturers face the additional complexity of having to realize sufficient volumes of such local products for scale economies, while keeping the costs of ramping-up the supporting sales/after-sales footprint to a minimum.
Look forward to part two of our US EV study: We will discuss various market factors that OEMs will need to pay attention to in the race to electrification including competition, policy, infrastructure, funding, and dealership laws.
Sources:
1 Berylls Strategy Advisors analysis and extrapolation including (among others) sales data from S&P Global Mobility Light Vehicle Sales April 2022 as well as production nameplate and propulsion system design data from S&P Global Mobility Automotive Light Vehicle Transmission + Engine Forecast, April 2022.
2 Ipsos. (2022, June 2). Ipsos Mobility Navigator Module 1: Electrification. Ipsos.
3 Oak Ridge National Laboratory for the U.S. Department of Energy and the U.S. Environmental Protection Agency. (2023, 03 17). 2023 Best and Worst Fuel Economy Vehicles. Retrieved from www.fueleconomy.gov: https://www.fueleconomy.gov/feg/best-worst.shtml. Retrieved from U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy.
4 Oak Ridge National Laboratory for the U.S. Department of Energy and the U.S. Environmental Protection Agency. (2023). 2023 Ford F150. Retrieved from U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy: https://www.fueleconomy.gov/feg/bymodel/2023_Ford_F150.shtml.
5 As of July 2022.
6 Experian Information Solutions, Inc. (2023). Auto Finance Year-in-Review Electric Vehicles & Affordability.
7 Reuters. (2023, March 6). Tesla cuts U.S. Model S and Model X prices between 4% and 9%. Retrieved from Reuters: https://www.reuters.com/business/autos-transportation/tesla-cuts-prices-model-y-model-x-variants-us-website-2023-03-06/.
8 Eckert, N., & Feuer, W. (2023, January 30). Ford Cuts Prices of EV Mustang Mach-E. Retrieved from The Wall Street Journal: https://www.wsj.com/articles/ford-cuts-prices-of-ev-mustang-mach-e-11675090387.
9 Baker, D. R. (2022, December 6). EV Transition Threatened as Battery Prices Rise for First Time. Bloomberg.
10 Experian Information Solutions, Inc. (2022). State of the Automotive Finance Market Report.
11 Burnham, A., Gohlke, D., Rush, L., Stephens, T., Zhou, Y., Delucchi, M. A., . . . Boloor, M. (2021). Comprehensive Total Cost of Ownership Quantification for Vehicles with Different Size Classes and Powertrains. USDOE Office of Energy Efficiency and Renewable Energy, Argonne National Lab.
12 GM, Stellantis, Ford.
13 Heines, D. F. (2022, December). Digital Capability Building: Solving the key Transformation Bottleneck. Berylls Strategy Advisors. Munich, Germany.
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he transformation of trucking in Europe towards zero-emission vehicles is accelerating and must be accomplished within two decades.
Never since the switch from horse-drawn carriages to Diesel-powered trucks, has there been such fundamental change for the industry. Technologies are being replaced and value pools are being reallocated. But also, the daily use of trucks by their operators is changing: battery charging and range limitations heavily affect the usage and scheduling of electric vehicle fleets.
Batteries replace Diesel engines as being the most valuable single component of a truck. On a long-haul tractor with 600 kWh battery capacity, the energy storage
accounts for 60% of the total product costs. Even though this share will gradually
decrease because of improving economies of scale and evolving battery technology, batteries have a massive influence on the value of electric trucks throughout their life cycle. And here another difference to Diesel trucks comes into play: lifespans of vehicles and major components like the battery will increasingly be out of sync.
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EMs face increasing pressure to cut their environmental impact.
This means reducing their carbon footprint, but also their raw material and resources consumption, and making their operations and business model more sustainable (not focused solely on selling more and more cars). In response, OEMs are starting to put in place Refurbish, Remanufacture, Reuse, and Recycle (R4 or the “4Rs”) strategies to maximize their reuse of valuable materials.
Source: Berylls Strategy Advisors
However, their strategies are at the moment neither comprehensive nor consistent. On the one hand, they usually focus on end-of-life applications, such as recycling and reuse of vehicles and battery modules. Recycling and reuse are the “2Rs” that appear to be the most profitable at present (if you want to learn more, please also have a look on Berylls’ Battery Re-X study. On the other hand they tend not to consider an important prerequisite for their strategies: Being the legal owner of the vehicle throughout and particularly at the end of its lifetime (around 8-10 years).
During the 8-10 year period, OEMs will need to redeploy the car to different end customers for different types of contract, as part of a multi-cycle Vehicle-as-a-Service (VaaS) sales model, rather than selling the car outright when it is new (if you want to learn more about the Berylls point-of-view on VaaS, please have a look on our dedicated website.
This multi-cycle sales model will put vehicle condition in the spotlight, as it will be essential to maintain a certain standard of quality so the car is available for as many types of business models as possible.
Source: Berylls Strategy Advisors
Efficient refurbishment operations to maintain the quality of vehicles between different use cycles will therefore become a strategic enabler for both multi-cycle sales models and for OEMs’ holistic 4R strategies.
We believe that taking a lifetime view of vehicles and components has significant strategic and commercial benefits
Source: Berylls Strategy Advisors
THE IMPORTANCE OF 4R STRATEGIES in the context of business model and sustainability transformation is increasing rapidly and only few players are starting to get prepared. Now is the time to decide whether to bea pioneer or a laggard in two of the most relevant future fields of action!
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s the transition to electric mobility accelerates, Berylls’ six-point action plan will help OEMs and suppliers ride out the economic headwinds and improve digital customer engagement
This year could see the first inflation-driven global economic crisis for 40 years, as the combined impact of the COVID-19 pandemic and the war in Ukraine continues to disrupt supply chains and force up prices. The hopeful news is that most economists expect inflation rates worldwide to fall during 2023, as bottlenecks ease and energy prices come down. Nonetheless, even if a global recession is avoided, the cost of living will still be far higher for billions of consumers than before the pandemic struck.
Against this background, the automotive industry confronts a series of formidable challenges, all of which are exacerbated by inflation. Manufacturers and suppliers must cope with raw material shortages and price rises as they implement ambitious restructuring programs to keep pace with the transition to electric mobility. At the same time, the massive boost to online shopping triggered by COVID-19 lockdowns has created a new breed of digitally savvy but financially hard-pressed car buyers who are far choosier and less loyal to brands than before the pandemic.
Our report sets out how industry players can turn the current inflationary storm into an opportunity to gain a lead over competitors that cannot navigate the headwinds. The last global financial meltdown in 2008 and its aftermath offered agile, imaginative automotive companies precisely this kind of opening to seize the advantage. Consider, for instance, how Korea’s Hyundai Motor Group increased its North American market share from 5.3 percent in 2008 to 9.1 percent in 2011 by targeting customers who would not have considered buying a Hyundai or a Kia before the US subprime mortgage crisis.
The challenge today is to apply the same creative thinking in a market buffeted by inflation, where both consumer behavior and the automotive industry are evolving at unprecedented speed. After analyzing the industry’s response so far to the current inflation-driven slowdown, we make the following key recommendations for 2023 and beyond:
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s herrscht ein großer Druck für deutsche Autobauer - auf dem chinesischen Markt und auf unserem heimischen Markt in Deutschland und Europa.
Neben BYD gibt es auch neuere Marken wie NIO, MGmotor, Polestar, die unter Konstrukten wie Geely Global geführt werden. Das sind neuen Konkurrenten besonders im Premium-Segment, denn diese Hersteller haben sich ausschließlich auf den Elektromarkt konzertiert. Wenn Sie sich den europäischen Automarkt anschauen, der rückläufig ist, denn das einzige Segment, das wächst, ist das Thema Elektromobilität.
Quelle: Börse hören.
https://www.brn-ag.de/41624
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hina’s automotive market once again displayed great resilience in 2022, despite severe challenges.
In total, 23.6 million passenger cars were sold, a year-on-year increase of 9.5 percent. This included the record-breaking figure of 6.5 million new energy vehicles (NEVs), a year-on-year rise of 94.3 percent, reinforcing China’s critical role in the worldwide shift to electric mobility.
Repeating their success in 2021, Chinese players proved the big winners in the NEV market, accounting for more than 80 percent of total NEV sales. Meanwhile, established foreign OEMs lagged behind. Even premium brands which in the past could depend on success in China struggled to cope with intensifying competition from domestic manufacturers as the transition to e-mobility accelerated.
The next international phase of this battle has now begun in earnest, with Chinese automotive companies taking on major global markets, focusing especially on western Europe. In 2022, China’s total vehicle exports reached another record high of 2.5 million passenger cars, a year-on-year increase of 56.7 percent.
Looking forward, market conditions in China will remain challenging for foreign OEMs, as more new Chinese players ramp up production and sales amid rapidly changing customer tastes and shifting government priorities. Nonetheless, there are still areas such as sustainability and the metaverse where foreign players can gain a competitive advantage, as we explain in this report.
During 2022, China’s economy continued to be affected by restrictive COVID-19 suppression measures while in October, the 20th National Congress of the Chinese Communist Party (CCP) set the country’s direction for the next five years. In addition, Chinese manufacturers, like their international peers, were severely affected by the global chip shortage and rising raw material prices. Against this background, China’s automotive industry experienced a turbulent twelve months.
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