Electrification of the industry

While vehicle electrification remains one of the most discussed topics in the automotive industry, several key factors will ultimately decide the level of penetration that Pure Electric Vehicles (PEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) will be able to achieve. Developing an efficient infrastructure / smart grid to include a number of easily accessible charging and quick charging stations will be a costly but necessary step. Additionally, the installation of smart meters, where consumers can charge their vehicles at non-peak times and sell electricity stored in their batteries back to utilities while their vehicles are parked, in homes will be necessary to maximize the benefits of electric vehicles. Likewise, battery technology must continue to develop in order to increase driving range and lower costs. Both public and private support of R&D efforts, along with increased industry collaboration, will be needed in order to bring costs and range into an acceptable cost equation for mainstream consumers. With these factors in mind, electric vehicles do not appear to be a near term solution. Rather, continued development and investment in the technology will seemingly pave the way for longer term success.

PwC Autofacts estimates that by 2016, annual production of Electric Vehicles (EVs) could reach 1.4 million units globally, which will represent approximately 1.5% of global vehicle assembly.

How PwC can help you

The PwC global automotive network has more than 1,500 skilled professionals that provide guidance, offer analysis, and deliver solutions to firms across the entire automotive industry value chain. Many of these professionals can help companies change the dynamics of the auto industry by delivering various services including: