MONTREAL — Collaboration will be a critical element for the global electric vehicles industry if it is to fulfill its potential, participants in Ernst & Young’s ‘Ignition Sessions’ executive roundtable series say.
The program, attended by key stakeholders from across the electric vehicle value chain, focused on electric vehicles (EVs) because the transformational change under way in this industry cuts across many sectors and has profound implications for automakers, utility companies, battery developers, smart grid operators and renewable energy suppliers.
According to Gil Forer, Ernst & Young Global Cleantech leader, after decades of "stops and starts," the electric vehicle industry is poised to grow but must forge creative partnerships and business models in order to create sustainable, long-term success.
"Stakeholders will need to embrace new business models and look for solutions beyond borders, in order to build critical mass and leverage this significant opportunity as we strive to achieve a more resource efficient and low carbon economy," Forer said.
Due to major strides by battery makers, big stimulus money for cleantech innovation, car makers shifting focus and governments starting to set standards, as well as increased consumer demand, the pace of change has increased significantly recently, according to Ernst & Young. Key milestones in the second half of 2010 include the forthcoming introduction of the mass market Chevrolet Volt and Nissan Leaf electric vehicles (EVs) and China’s completion of construction of its largest EV charging station. The momentum is expected to continue with more than a dozen battery electric vehicles slated to arrive between 2010 and 2013 from incumbent automakers such as Ford, Mitsubishi and Renault and new entrants including Tesla, BYD and Coda Automotive.
Mike Hanley, Ernst & Young Global Automotive Leader, added, "The automotive industry is poised for the evolution to increasingly electrified powertrain technologies; to facilitate this transition the traditional automotive industry, new automotive market entrants, utilities, regulators and government agencies must collaborate effectively to take advantage of the opportunities and to make the entire consumer experience seamless."
Market drivers vary regionally, Ernst & Young says. In Europe, take-up triggers include EV availability, pricing, convenience, safety and sustainability; commercial fleets are likely to be the first adopters. In the U.S., the economics and availability of EVs are key drivers, but early-adopting consumers are likely to play a key role. In China, by contrast, the primary driving force is the government’s desire to reduce oil consumption and curtail pollution.
Auto manufacturers, parts makers, utilities and governments are taking major steps to capitalize on and facilitate the EV opportunity. Those companies with realistic plans and strong partnerships will benefit most, according to Ernst & Young. The global firm says there is a need to make a commitment, internally and externally – stakeholders must prepare systems, infrastructure and customers for an EV future.
To access the full report and a video featuring perspectives from Cleantech Ignition Session participants, click here.
