Not bigger but smarter – How to right-size electric vehicles and their batteries

Authors

C. Koehler, T. Stahl - Strategy Engineers GmbH & Co. KG

Summary

The first generation of electric vehicles (which is currently on the market) is dominated by vehicles which are too expensive for mass market adoption – driven by range anxiety and resulting in large, on-board battery capacities.

For mass market adoption, the second generation of electric vehicles needs to become much more affordable, resulting in requirements for right-sizing of batteries.

This will require OEMs and their suppliers to balance CO2 footprint, Production Capacity, Range, Fast charging, Cost and Customer experience simultaneously. Our research shows, that there is significant upside potential in vehicles with more efficient powertrains, higher battery energy density and ultimately smaller footprint. The future is bright for more affordable mobility – but we need to step-up efforts to bring smarter vehicles to the market.