2
Electric vehicles
S
INCE DELOITTE LAST presented a
forecast for electric vehicle (EV) sales, in
January 2019, the EV market has made great
strides, and not just in terms of sales. Original
equipment manufacturers (OEMS) have invested
billions to deliver new electried models, from
R&D to factory redesign. Consumer attitudes
have evolved. Government interventions have
pushed forward and pulled back. But then
COVID-19 completely disrupted global sales and
manufacturing. In this context, a revised forecast
based on updated data is needed.
By examining the current state of the EV market
worldwide and noting the many factors fostering
growth in various directions (Part 1 of this report),
we have formed conclusions about how the
market will take shape over the next decade. The
signicant growth of EVs leading up to 2030 will
present major opportunities and challenges for
traditional OEMs, new-entrant OEMs, captive
nance companies and dealerships. In particular,
traditional OEMs will nd insights in this report
that can help them re-prioritise their customers
and strategies in a volatile competitive landscape.
Paramount to seizing opportunities and man-
aging risks is taking a new approach to market
segmentation. We detail one such approach in
Part 2 and apply it as a use case to one major
market, the United Kingdom, to inform and
inspire OEMs and other stakeholders globally.
By letting today’s insights fuel the journey for
the next ten years, we can accelerate beyond
the obstacles the pandemic has brought and
toward a future where EVs take centre stage.
Introduction
Before the COVID-19 pandemic shook up the automotive industry – along
with every other industry – electric vehicles were moving steadily into the
spotlight. The combined annual sales of battery electric vehicles and plug-in
hybrid electric vehicles tipped over the two-million-vehicle mark for the
rst time in 2019. This much-anticipated milestone may have become
overshadowed by economic uncertainty and changed consumer priorities, but
there is value in taking stock of the electric vehicle market even now.
In this report, we use the term electric
vehicles (EVs) to refer to battery electric
vehicles (BEVs), as well as plug-in hybrid
electric vehicles (PHEVs).
1
Unless specically
stated, our analysis has considered both
forms of drivetrain.
• BEVs are powered solely by batteries. They
use an electric motor to turn the wheels
and produce zero emissions.
• PHEVs are capable of zero-emission
driving, typically between 20 and 30 miles,
and can run on petrol or diesel for longer
trips. As the name suggests, they need to
be plugged in to an electricity supply to
maximise their zero-emission capability.