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Your monthly newsletter with predictive analyticsinsights tips and industry newsWe hope that you and your loved ones are staying safe and healthy duringthese unsettling times While the Covid-19 pandemic continues to wreak havocbig questions loom over the marketplace We have the knowledge and datathat you need to make the right decisions for your business
This month were focusing on Electric Vehicles (EVs) including the expandingcharging infrastructure how to deal with consumers range anxiety batteryreliability and parts costs
Need a bit of inspiration for your business Read on to get relevant data-drivenindustry insights and then contact us to discuss your business goals
Insight 1 EVs Predicted to Pass ICE Sales by 2030
In a recent report published by Boston Consulting Group electric vehicle (EV)sales are at 8 globally and expected to account for one-third of sales by 2025EV sales are also expected to pass Internal Combustion Engine (ICE) vehiclesales by 2030
A new forecast for EVs shows explosive growth in new sales particularly in ChinaCredit Bloomberg NEF
On January 27 2020 Automotive News reports that new and traditionalautomakers have over 100 electric models in the pipeline today and more areemerging
Conclusion The stage is set for rapidly increasing EV sales and developmentas countries like the UK have banned petrol and diesel vehicles by the nextdecade The automotive industry is therefore tasked with ensuring customersaccept adopt and even begin to prefer electric vehicles
Insight 2 Addressing EV Consumer Concerns
The maximum range (per charge) continues to improve as demand for EVsincreases each year Published estimates on the Tesla Model S indicate thelongest range of 370 miles with the next generation Tesla Roadster boasting620-mile capability In comparison the Chevrolet Bolt achieves a range of 259miles and the 2020 Nissan Leaf reports a range of 226 miles - more thandouble the range of its 2017 predecessor
Robots at the Tesla factory in Fremont California assembling electric carsCredit Tesla Motors
In The News Just recently GM announced its all-new modular platform andUltium batteries destined for all future models and offering a range of 400 milesThese engineering advancements are critical steps in getting consumers overthe range-anxiety hump
EV consumer concerns are not limited to range - they want to know What willthe battery cost to replace and how long will it last With potentially high out-of-pocket expenses for high-powered batteries consumers as well asmanufacturers are now considering how they will set up warranty coverage
Conclusion Overall the expectation is that future EVs will require fewerrepairs The type of repairs and timing will determine who pays and how much
A Deeper Look At We Predict wersquove created the industryrsquos largest study ofpredictive and actual service incidents incorporating tens of millions of vehiclesand billions of service events over the past 10 years We call this studyDeepview and itrsquos the first data-driven comparative benchmarking of its kindproviding an eye-opening view of whatrsquos happening with components today andin the future
For each model year here are the projected repairs service incidents per 1000vehicles over the first 3 years of use
Credit Deepviewreg by WePredict
Analysis The latest Deepview study confirms that all-EVs average lowerrepairs (8111000) compared to gas models (8411000) However from thetable below you see that the results are still a bit mixed with some EVrsquosperforming better than average in their segment on repairs over the first threeyears while others have more repairs than their competitors
Out of 8 all-electric models in 2019 five of the eight are projected to have fewerrepairs overall than the average for the competitive segment 3 of the 4 European all-
electric models are projected to have higher repairs than the segment average
Overall projected service incidents per 1000 vehicles ldquoBetterrdquo corresponds to alower expected frequency of repairs ldquoWorserdquo corresponds to a higher expected
frequency of repairs than for the segment averageCredit Deepviewreg by WePredict
Analysis Electrical repairs are projected to increase on 2019 models on allmodels rising above the 400 per 1000 mark for EVs All-EV models tend tohave higher Electrical repair rates than gas-powered models experiencing anincrease of over 100 repairs per 1000 higher Within Electrical Battery repairsare projected to rise 70 on 2019 and 2020 models compared to rates seen on2014-2018 models And as models age beyond the first 3 years battery repairson EVs increase six-fold by year 10
A look at service incidents for all-EV models versus Gas modelsCredit Deepviewreg by WePredict
Conclusion With rising electrical and battery repairs this is important to tacklein order to achieve consumer confidence in EVs This is especially true forincidents that happen outside of the normal warranty period
Manufacturers suppliers and repair facilities need to pay close attention torising rates and address concerns before they multiply Having a wider view offield performance through Deepview can enable manufacturers to addressthese areas in their product development and customer care practices
Insight 3 Increasing Growth for EV Charging
With range expanding the next obstacle for EV adoption is the ability to re-charge According to a 2016 EV consumer study by McKinsey chargingstations were the 3rd biggest barrier as buyers considered an EV in ChinaGermany and the US
Fast-charging stations for EVs use a high-voltage DC charge (instead of a slow ACcharge) to cut vehicle charge times from hours down to as little as 20 minutes
Credit IHS Automotive
Analysis Increasingly businesses and public parking lots are offeringpreferred parking options and prime locations for EV recharging In the case ofbusinesses many have free charging facilities for employees while public lotscharge a fee There are several options under development from wirelesscharging along highways to streetlight charging stations for those in apartmentbuildings with no off-street parking to separate fast-charging stations
As most individual EVs remain stationary for 8-12 hours at night home-charging can be the most economical solution due to lower residential rates But depending on the individualrsquos typical commute lifestyle and housingsituation recharging at work or along the way may also be necessary
Conclusion Many automakers suppliers and utility companies recognizingthe importance of developing a stable reliable infrastructure have invested incharging start-ups and solutions Currently time to charge is long compared togas-powered fill-ups with several models achieving 80 charge after 45minutes Shortening the time to charge along with increasing the chargingoptions will make the EV a more viable option
Get Data Insights For Your OrganizationNow that youve seen the benefit of our knowledge and data we would love theopportunity to discuss how Deepview can help your business
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