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Fasten your seatbelt - Future is Electric!

 

Fasten your seatbelt

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It’s electric! Consumer interest in electric vehicles seems to be picking up. While still just a small share of the auto market, sales of plug-in vehicles more than doubled in the first half of 2021 versus 2020. But higher prices and a lack of charging stations continue to be challenges for the industry.

https://www.wsj.com/articles/electric-vehicle-sales-growth-outpaces-broader-auto-industry-11627032601?st=nslspiq6nd83eqz&reflink=article_email_share&cid=other-eml-onp-mip-mck&hlkid=59f6a7cb92b94e0babb2d10bad64cef4&hctky=9431270&hdpid=bc71d8a0-3944-4ae2-b217-5b63900f0698

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Who’s in the driver’s seat? A shortage of computer chips and increased demand for both new and used cars has made it difficult for dealerships and individuals to get vehicles. Automakers are temporarily removing digital features or replacing them with analog ones to conserve chips, and car shoppers are buying whatever they can find—even if it doesn’t meet their specifications. 

https://www.nytimes.com/2021/07/15/business/car-sales-chip-shortage.html?searchResultPosition=1&cid=other-eml-onp-mip-mck&hlkid=8e0efa1d55924bf48ce40284eab2a0e2&hctky=9431270&hdpid=bc71d8a0-3944-4ae2-b217-5b63900f0698

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Why it matters. The auto industry pumped the brakes hard in the early months of the COVID-19 pandemic, but car and truck production has come roaring back with rapid—and in some cases record—levels from the third quarter of 2020 through the first quarter of 2021. As with multiple industries across regions, the pandemic has greatly accelerated the trends affecting the mobility industry’s value chain that were building before it occurred.

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Time to shift gears. Mobility will continue to become more digital, more connected, and especially more electric. Since changes in mobility require changes in capabilities, it’s clear that automakers will have to adjust their organizations significantly. Here are the trends that will continue to gather speed as the industry moves further from the COVID-19 crisis by Mckinsey :

https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-irresistible-momentum-behind-clean-electric-connected-mobility-four-key-trends
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