As new opportunities and challenges continue to emerge, it remains important to continue to closely monitor the progress being made in each of the key areas discussed in the survey. Collaboration remains a key element of addressing those challenges, as multiple sectors (automotive, energy, utilities and cleantech) unite to forge a new and exciting path with the opportunity to fundamentally change the world in which we live.

—Charging Forward

Among the findings of the survey:

• Approximately one-third (33.8%) of respondents felt the lack of investment to modernize the grid is a primary roadblock preventing the widespread support of EVs. In addition, the lack of capacity during peak energy consumption hours also is a concern, as indicated by 31.1% of those surveyed.

• While there is little doubt that collaboration between relevant parties such as the government, utilities, local municipalities, and private interests is needed to develop a sustainable EV infrastructure (35.3% of respondents felt each should share the financial burden), government agencies in particular will be creating ample financial incentive to other participants. This is already a reality as governments around the world have offered billions of dollars in the form of loans, grants, and rebates through various stimulus programs.

  19% of those surveyed indicated the government should bear the primary burden of developing and funding an EV infrastructure or smart grid.

• Companies continue to work on achieving a balance between investing in development of new technologies and passing the costs on to the consumer. In addition, bringing the cost of EVs in line with internal combustion engine (ICE) vehicles remains a key challenge to achieve widespread adoption. Almost half of the respondents (41.6%) indicated that long-term cost savings is the primary reason consumers would be willing to pay a premium for an EV.

• Nearly 68.8% of respondents believe hybrids and plug-in hybrid electric vehicles (PHEVs) are the most appealing to consumers overall.

• Respondents predict that coal will remain the primary energy source for EVs in 2020 (28.9%), followed by Fossil fuel/oil (21.4%). Solar comes in third at 19.4%, followed by Other (18.9%) and nuclear (11.4%).

As automakers continually improve the fuel efficiency of traditional ICE vehicles to meet emissions standards in the coming years, consumers are rethinking the additional premium required for an EV. However, as fuel prices escalate, the demand for an EV or hybrid vehicle will likely increase in the near-term.

—Brandon Mason, Autofacts senior analyst

In terms of the assembly outlook for hybrids and EVs, Autofacts (PwC’s automotive forecasting service) projects that annual production will reach approximately nine million units by 2020, representing roughly 9% of global market share. Of that, nearly one third, or three million units, will be plug-in and pure electric vehicles. Significant volume increases are expected in the 2017-2020 timeframe as second and third generation EV systems and supporting technologies are rolled out.

Resources

• Charging forward: Electric Vehicle Survey