The rise of electric vehicles (EV)1 means long-established automotive players are experiencing profound and prolonged challenges such as new technologies and products, new competitors like Tesla Motors and Google, and the rise of fuel-efficiency regulations.
This study covers passenger vehicles in the battery electric vehicles (BEV) segment only, hybrid electric vehicles (HEV) are not considered. For example, in the world’s largest automotive market, China (20.9 million passenger vehicles sold in 2015), EVs in 2015 only accounted for 147,000 units. By contrast, in Norway (151,000 passenger vehicles), 26,000 EVs were sold. So, why does Norway have a 17 percent market share, while China only has 0.7 percent market share? What factors are driving EV market growth? Which EV markets should OEMs focus on? To help answer these questions, Accenture has developed an EV Market Attractiveness framework that analyzes selected domestic EV markets and helps OEMs pinpoint crucial distinctions between markets to support their EV investment decision making.
Despite the current low oil price, global EV sales figures have been growing rapidly: from 36,000 units sold in 2011 to more than 270,000 four years later. However, the market share of EVs as a percentage of the global automotive market in 2015 was only 0.3 percent. An increase to just 3 percent would equate to 2.7 million EVs. This potential for EV uptake, however, varies greatly across domestic markets.