How to Keep the Wheels Rolling

The path to vehicle electrification is clear for car manufacturers. However, the pace of consumer adoption remains uncertain. Battery life, infrastructure, driving range and costs continue to pose barriers to battery electric vehicle (BEV)  adoption. But government incentives, such as tax credits and purchase subsidies can also have a major influence. 

To navigate the shift to electrification successfully, a nuanced understanding of consumer motivations and pain points in major markets is essential.

In this paper, we examine the key differences, barriers, and motivations across the three largest EV markets – China, the US, and Germany. There are significant differences across these markets. For instance, Chinese consumers show the highest consideration of battery electric vehicles (BEVs) and willingness to pay a premium, compared to much lower levels in the US. 
We’ve laid out a potential roadmap for manufacturers so they can keep the wheels rolling and lead the charge in the EV revolution.

Key takeaways:

• Electrification is a one-way road for car makers, due to the high capital expenditures for transitioning from internal combustion engines to EVs.
• There are major differences across the three largest EV markets, like willingness to pay a premium.
• Government policies and incentives have a significant influence on EV adoption, for instance, the Clean Vehicle Tax Credit in the US making some car models more affordable.
• There are several barriers to consumer uptake like public charging infrastructure, recharging time, cost of parts etc.
• Some commonalities exist among potential buyers of EVs across markets – these include age, income, and where they live.
   

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