i3 - September/October 2020 - 16

EV
CONNECTED
By Robert E. Calem

A

s the auto industry prepares for a great expansion
of electrified vehicle sales - both hybrid and pure
battery electric vehicles or BEVs - it's also developing a slate of connected services to sweeten the
deal for consumers. These will go well beyond the usual assortment aimed at reducing range anxiety and making charging more
convenient. The new connected services could even improve the
performance of the vehicle itself.

TYING EV PROLIFERATION TO CS APPEAL

"Certainly 10 years ago there was very little demand for electric
vehicles and slight demand for hybrid," says Joe Vitale, global
automotive sector leader at Deloitte Consulting LLP in
Bloomfield Hills, MI. Barriers to interest included range anxiety,
which persists, and a prohibitive cost delta compared to ICE
(internal combustion engine) powered vehicles, which is diminishing, Vitale says. Now, "we're seeing consumers do want
16

SEPTEMBER/OCTOBER 2020

i3_0920_16-19_Feature_EVConnectedServices.indd 16

electric vehicles," and the shift has been consistent across many
countries, he adds.
According to Deloitte's 2020 Global Automotive Consumer
Study published in January, 41% of U.S. consumers in 2020
anticipate the next vehicle they buy will be propelled by "alternative powertrains," up from 29% in 2019. Of the 41% this year,
27% will be hybrid vehicle purchases, 8% will be BEVs, and 6%
will be "other" alternative powertrain vehicles. Of course, the
inverse is that 59% of consumers plan to buy an ICE vehicle
next. Yet, the U.S. is an outlier worldwide, Vitale notes. In Japan,
only 37% of consumers intend to buy an ICE vehicle next - the
lowest percentage globally - compared with 47% hybrid and
12% BEV. The ICE figure is 43% in China.
The year-over-year purchase projections for alternative powertrain vehicles are also pronounced overseas. Deloitte reports
in Germany, intent is at 51% in 2020 from 37% in 2019, and in
Japan to 63% from 59%. China has declining intent, to 57%

Courtesy of Daimler AG (2)

SERVICES

I T I S I N N O VAT I O N

9/3/20 2:19 PM


https://www2.deloitte.com/us/en/footerlinks/office-locator/michigan/detroit.html

i3 - September/October 2020

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