Much like Disney in the media industry, traditional motor vehicle companies are also encountering comparable challenges to pivot their businesses from ICE (internal combustion engine) to EVs (electric vehicles). As technologies advance, they open doors for the creation of new products through more cost-effective methods. Established businesses must adapt their strategies or risk losing market share or even facing extinction.
Toyota, VW, and Mercedes have traditionally focused on producing ICE vehicles. However, they now find themselves at a juncture where EVs are gaining traction. This shift is driven by improvements in battery range, reduced charge times, and more affordable production costs. Nevertheless, EVs are still in the early stages of capturing market share. In 2021, only 8.6% of new cars sold worldwide were EVs. The transition from ICE to EVs in the new car sales market is on an upward trajectory. These established car manufacturers must continue to service and innovate in the ICE segment while also striving to carve out a share in the growing EV market. Striking this balance can be a challenging task, especially when resources and attention are stretched in both directions.
American Tesla and Chinese BYD are exclusively dedicated to the Electric Vehicle (EV) market. Their primary goal is to secure the largest possible share of the EV market and enhance its appeal to consumers. They achieve this by refining their expertise in producing more affordable vehicles and establishing charging station infrastructure in pivotal markets to make the charging process more convenient for their customers.
The impact of emerging technologies extends beyond the realm of Electric Vehicle (EV) and Internal Combustion Engine (ICE) companies. It ripples through various industries that depend on the demand for these vehicles. EVs presently demand less maintenance, and when needed, it’s typically handled by electricians rather than traditional mechanics. They also rely more heavily on semiconductors due to their electric components, lithium for their batteries, and software for safety and autonomous driving. The shift from ICE to EV will create opportunities for businesses to thrive and capitalize on this trend.
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