The last few months have seen electric vehicles (EVs) buoyed up, especially in Europe where July 2020 was a record-breaking month for EV registrations. According to JATO, a provider of automotive data, volumes that month rose 131% year-on-year to 230,700 unitsthe first time that these vehicles were bought by more than 200,000 consumers in a single month.
The transition to EVs is driving rapid change in the way carmakers and the automotive industry supply chain manufacture their products. What has worked for building highly efficient internal combustion engine (ICE) vehicles is not going to be viable for producing EVs competitively over the next decade. The challenge is to create a mass-market manufacturing environment on a par with conventional cars and make EVs a viable and profitable scale businessnone of which is the case right now.
The future of factories and components
To date, many established carmakers have used the same platform for both their ICE and EV models to protect investments and hedge their bets until demand shifts more fundamentally toward EVs. However, the industry has recently been moving more decidedly toward skateboard platforms. Propelled by EV-only manufacturers such as Tesla for which such a from scratch approach is easier to realise these ...