Automotive and New Mobility / 9 December 2019

The future is electric, but not just

Critical aspects to succeed in China’s auto market

The slowing growth of China’s New Energy Vehicle (NEV) market since midyear 2019 has stirred as much attention as the country’s decline of sales in the passenger vehicle (PV) market overall. Electric car and plug-in hybrid purchases represent not even five percent of the automotive market, nevertheless the Middle Kingdom has been seen by many as significant trailblazer to pave the way towards alternative energy vehicles. The most recent slowdown in demand has triggered doubts about the viability of NEVs without government subsidies; and a prolonged softening of PV sales overall raises questions about how to succeed in the world’s largest automotive market.

The global automotive industry has been significantly shaken up in the past decade or so by technological advancements and the subsequent emergence of new players, such as Tesla, multiple start-up vehicle makers, Uber, Didi, etc. It is fair to say that the sector finds itself in a transition from personal transportation towards individual mobility. The transformation is much further reaching than a simple replacement of drivetrain technology, though. What appears on the surface to be a mere switch from traditional fuel-based powertrain to electric technology is in reality the begin of a substantial change of the role that the car plays in people’s lives. While electric vehicles pave the way into the new mobility, evolving hand in hand are connected technology solutions, new mobility services and self-driving technologies – often referred to as CASE: Connected cars, Autonomous driving, Shared usage, and Electric drivetrain.

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Photo Credit: Laurie Decroux

by Klaus Paur

More about:

#automotive #brandequity #NEV #newenergycar #passengercar #PV

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