In Q2 2022, US EV sales grew 13% from Q1 to 5.6% of the cars Americans bought. If the US follows the trend established by 18 leading countries, US EV sales can reach 25% in 2025. With such a fundamental change accelerating, how might the car design to distribution also transform for the better?
Step on EV adoption
BCG’s US EV sales estimations from 2018 to 2022 have been increased from 21% to 53%. The policy is a key forcing function. Governments are catching up to reduce the greenhouse gas emission from auto, e.g.:
- President Biden’s EV golden age push aiming more than 40% car sales in EV by 2030.
- California will ban new gas car scales from 2035.
- UK, Japan & Chain are also going with EVs for all new car sales in 2030 or 2035.
As EVs replacing gas cars accelerates, not only the whole supply chain is on a phase change, from motors, batteries, materials, and charging stations to the power supply & distribution. But also, the value chain is under disruption. Retailers need to adapt if to survive. For example, Ford just asks its dealers to be “EV-certified elite” by investing $900K upfront. No one knows how that will unfold yet. But, too much uncertainty is the theme most can agree on. So, what may increase the chance to thrive?
Another Digital Transformation
Concept cars may still be the vehicle for premium car brands to showcase how innovate they can be, and create marketing hype. But after COVID-19 and under a digital era, how may it transform better?
To disrupt or to be disrupted
This Sep., Detroit Auto Show features a lot of cool concept cars. For the first time since COVID-19, consumers can check out those beautiful machines physically. With more carmakers skipping, fewer cars revealed & a smaller crowd, the century-old tradition is very much limited by its tradition & physics. What may a “Metaverse” help to augment that reality?
The best of both worlds
NVIDIA just announces DRIVE Sim powered by Omniverse with new capabilities. It not only “simulates the earth” to improve Self-Driving Cars, but also provides a virtual design studio for interior & user experience design. As it’s fully Software-Defined, the design-to-validation cycle can be sped up 10x at a much lower cost. Furthermore, AUDI & NVIDIA personalize the car buying experience with VR. But, why stop here? Soon, we may test drive the latest & greatest “concept cars” on the road of our choice in an Asphalt, Mario Kart, or whatever style 🙏.
Full Disclosure
The opinions stated here are my own, not those of my company. They are mostly extrapolations from public information. I don’t have insider knowledge of those companies, nor a whatever expert. Up to you to take it with a grain of salt or two 😉.
