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Are the big automakers ready to be fully electric by 2030?

Monday, 30 January 2023

The electric automotive world is increasingly preparing for the appointment! The date is 2030, the year in which a wide range of car manufacturers have set the goal of producing only electric cars, thus giving up ICVs and hybrids. Favorable policy measures by the governments are continuing to sustain this transformation. The usage of custom platforms for electric vehicles will enable OEMs to overcome most of the current challenges faced in electrification. 

Tesla faces the challenge of producing 20 million cars by 2030
Elon Musk, the CEO of Tesla, has established lofty objectives for the business, such as selling 20 million cars by 2030 and growing its value to trillions of dollars. However, analysts advise Tesla to broaden its product offering and provide cheaper solutions to maintain a significant presence in the automobile sector. Despite only offering four high-end models, Tesla has made major strides in the market. With 1.3 million units expected to be deployed by 2022, the Model 3, Model Y, Model S, and Model X will make up around 65% of all-electric vehicles purchased in the US. 

Tesla needs to think about diversifying its product line to appeal to a larger market and make its technology more widely available if it wants to maintain its dominance in the sector. Automotive industry experts believe that if Tesla does not give customers more accessible and reasonably priced options, its rapid expansion may eventually slow. This is consistent with established business practices used by large industry players, such as providing a wide variety of products to appeal to a variety of clients. 

Companies like Toyota offer a wide selection of products, ranging from the $22,000 Corolla to the $100,000 Lexus LC, as well as other alternatives in between. Volkswagen sells luxury cars like Porsches, Audis, and Bentleys in addition to affordable hatchbacks. The automotive line-up from General Motors also includes models from Chevrolet and Cadillac. Tesla must take into account broadening its product offerings in order to appeal to a larger variety of customers and satisfy their various wants and preferences if it is to retain its growth trajectory and maintain a dominant position in the industry. Other makers of electric vehicles are putting further pressure on Tesla because it has a dearth of more affordable options in its product line-up.

For instance, China's BYD is swiftly overtaking Tesla as the market leader in electric vehicles. According to Michael Dunne, the creator of the EV consultancy ZoZoGo, this is understandable given that BYD offers a variety of vehicles and Tesla generally concentrates on luxury models. Tesla is exposed to competition from other manufacturers with a wider choice of products catering to different markets and price points because its product line-up lacks more economical options.

Volkswagen’s strategy to reach 2030
By 2030, the mobility landscape will have drastically changed: how we get around in the future will depend on electric drive and fully networked transportation with autonomous drive. The Volkswagen Group is a main driver of this change and pushes its realignment from car maker to tech firm with the Group strategy "NEW AUTO - Mobility for Generations to Come."

Future personal transportation will continue to be heavily influenced by powerful brands and vehicles. The vehicle, the Volkswagen Group's main product, and the underlying business model are both undergoing substantial change at the same time. Between now and 2030, the sources of income will gradually shift from traditional combustion engine models to zero-emission electric cars, and from vehicle sales to software and mobility services, supported by the crucial autonomous driving technology. Future personal transportation will continue to be heavily influenced by powerful brands and vehicles.

The vehicle, the Volkswagen Group's main product, and the underlying business model are both undergoing substantial change at the same time. Between now and 2030, the sources of income will gradually shift from traditional combustion engine models to zero-emission electric cars, and from vehicle sales to software and mobility services, supported by the crucial autonomous driving technology. The future looks bright with a projected doubling of global mobility revenue by 2030. Volkswagen will maximize this potential, notably in Europe, the USA, and China, by using its powerful brands and cutting-edge technological platforms. The Volkswagen Group's value drivers will be these technological platforms in the fields of mechatronics, software, battery & charging, and mobility solutions. They allow VW to benefit from scale, cross-brand synergy, and third-party business.

Only electric vehicles for Volvo by 2030
Volvo Cars is dedicated to dominating the rapidly expanding market for luxury electric vehicles and have ambitious goals to produce only electric vehicles by the year 2030. By that time, the business wants to offer solely all-electric vehicles and gradually phase out all hybrid and internal combustion engine-powered vehicles from its global line-up. The company's ambitious climate plan, which aims to constantly lower the life cycle carbon footprint per car by practical action, includes a shift toward becoming a fully electric vehicle manufacturer. It bases its choice on the belief that customer adoption of fully electric cars would increase quickly as a result of legislation and rapid growth of easily accessible, high-quality charging infrastructure.

Volvo Cars' transition to a fully electric vehicle is being accompanied by a greater emphasis on online sales and a Care by Volvo consumer offer that is more comprehensive, alluring, and transparent. Only online retailers will provide all completely electric versions. The increasing demand for Volvo Cars' electrified vehicles in recent years and a solid belief that the market for combustion engine cars is declining have led to the company's 2030 ambition, which signals an acceleration of its electrification strategy. 

“To remain successful, we need profitable growth. So instead of investing in a shrinking business, we choose to invest in the future – electric and online. We are fully focused on becoming a leader in the fast-growing premium electric segment”, said Håkan Samuelsson, chief executive.  

Last year, Volvo Cars introduced the XC40 Recharge, the company's first entirely electric vehicle, in markets all over the world. A new model in the 40 Series, the company's second all-electric vehicle, will be unveiled later today. Volvo Cars will release a number of other electric vehicles in the upcoming years, with more to come. It plans to sell 50% completely electric vehicles globally by 2025, with the remaining 50% being hybrids. Every vehicle it sells ought to be entirely electric by 2030. “There is no long-term future for cars with an internal combustion engine. We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change”, said Henrik Green, chief technology officer.

By 2030, Tata Motors anticipates selling an EV for every second vehicle it sells
The market leader in India for electric passenger vehicles, Tata Motors, has already disclosed a portfolio of 10 cars by 2026. After laying the groundwork with the Tiago, Tigor, and Nexon, Tata Motors is advancing in terms of pricing, range, and premiumization to keep pace with the Indian market. The company would provide EV options in the next couple of years with models including the Harrier, Curvy, Sierra, and Avinya, with prices ranging from Rs 20 to Rs 40 lakh. 

Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, says: “The company plans to offer products across price points. Directionally, we are moving up and our average price points are moving up. We have created a decent customer base – we want to offer an upgrade alternative to the users of Nexon – by creating alternatives like Sierra, Harrier and Avinya.”

According to Chandra, the business is on track to achieve its volume goals. EV sales for the company are anticipated to surpass 50,000 units in the current fiscal year and to double to over 100,000 units in FY2024. The corporation will experiment with dedicated EV outlets as the price points rise. This will start in a small number of places where there is enough demand for a dealer to be profitable. As volumes increase, the business will progressively enter other markets in the future. “If you focus on customers, create concepts based on their needs, and create a larger mass of customers, investors will come. We are working on 10 products. When we launched the Nexon, we didn’t do the global benchmark . . . we did what a customer wanted and we hit the sweet spot. So as long as you offer products that customers want, volumes will follow and will attract investors,” concluded Chandra.

Mahindra is ready to be fully electric by 2030!
Mahindra, an Indian manufacturer, would spend $1.21 billion to build an EV production facility close to Pune in the region's west. The group with its headquarters in Mumbai stated that the investment, for which the Maharashtra state government has given its assent, would be distributed over a 7-8-year period. Mahindra, which is well-known for its sports utility vehicles (SUVs) and jeeps, will produce its future Born Electric Vehicles (BEVs) line at the new factory, which includes the EV version of its well-liked SUV, the XUV 700. Since only 1% of the approximately 3 million cars sold each year in India are electric versions, the country's auto market is minuscule in comparison to its population. But by 2030, the government plans to increase this to 30%. With electric versions of its Nexon SUV and Tigor hatchback, Tata Motors dominates India's EV industry, and the new facility will help Mahindra compete against this domestic rival.

After Ford Motor (F.N) withdrew from the domestic market, Tata acquired the Gujarat plant in the western state of Gujarat in August. The valuation of Tata's electric vehicle division, in which private equity firm TPG (TPG.O) has a stake, is $9 billion. In order to raise between $250 million and $500 million for its new EV unit, which was also valued at $9 billion in July following its maiden investment from British International Investment, the technology-to-tractors Mahindra Group is in discussions with international investors (BII). In January, Mahindra's first electric SUV is anticipated to be on sale. In August, the automaker strengthened its partnership with Volkswagen Group, under which the German automaker will provide its Indian rival with electric components. Mahindra's new facility will be located in one of India's oldest car manufacturing centres, which is also home to Bajaj Auto, Hero MotoCorp, Volkswagen, and Mercedes-Benz.

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