Insight

EV Plan B?

Sales of EVs are unlikely to boom for years. Automakers and suppliers may need to rethink plans to launch hundreds of new models.

Tom Mayor

Tom Mayor

National Strategy Leader, Industrial Mfg., KPMG US

+1 216-875-8061

Jono Anderson

Jono Anderson

Principal, Strategy, KPMG US

+1 858-750-7330

Bala Lakshman

Bala Lakshman

Managing Director, Strategy, KPMG US

+1 214-840-4005

Todd Dubner

Todd Dubner

Principal, Strategy, KPMG US

+1 212-954-7359

The plug-in electric vehicle has not yet captured the imagination of the American driver. Most are not willing to pay more for EVs and are not comfortable driving on battery power. Yet, automakers are preparing to introduce hundreds of models into the U.S. market in the next five to ten years, risking a potential glut.

Automakers, however, have an opportunity to craft a Plan B for EVs that align more realistically with likely U.S. demand. For starters, they should focus on one or two models aimed at markets with higher near-term potential such as the Mobility as a Service (MaaS) business and luxury and sport/luxury segments. KPMG shows automakers how they can recalibrate their EV plans in this new report.