Approximately 6 percent of the vehicles sold in the U.S. today are electric. That’s only 825,000 EVs. When you consider that 40 percent of those sales are in California, that leaves less than 500,000 divided among 49 states.
The good news – for the environment and EV sales – is that most prognostications point toward 40 – 50 percent of all vehicles on America’s roads by 2030 will be electric.So, what’s an EV manufacturer to do? The simple answer is that there’s a rainbow of solutions.
Some traditional manufacturers are still making profits from predictable internal combustion vehicles. They’re selling the ICE experience that wraps around their cars and trucks. For example, there’s the hot version from Dodge and the off-road variants from Ford. They are wisely finding low-cost methods to stretch the lives of their portfolio products while simultaneously stepping into the EV marketplace.
A Flexible Approach
Quite a few pundits have disparaged Toyota for being slow to develop a pure EV portfolio. Their scientists, however, claim there is no single silver bullet. To support a move to lower carbon consumption, the worldwide leader in auto sales is remaining flexible. Their reasoning is that drivers across the country will not have access to a widespread full electric infrastructure for quite a few years. So, hybrid range, extended electric, cleaner gasoline, hydrogen fuel cells and, of course, full electric are going to play prominent roles for at least the next 20 to 30 years.
Tesla originally shook the industry when the investment community heaped kudos and cash on Elon Musk for being a futurist and an outsized disruptor. Now, nearly every manufacturer is sprinting into electrification, but, as usual, it will not be a one-size-fits-all formula. Manufacturers will still have to balance their portfolios to ensure profits and perform tried-and-true marketing methods.
There will assuredly be quite a few auto companies that fall away in the process. And some that aren’t making headlines today will be front page news tomorrow. Bottom line: we still have at least another decade or so of industry disruption ahead of us.
Playing it safe creates mediocrity and oftentimes failure. At Karma, research, data, a brilliant design team, and common sense are guiding our efforts toward fulfilling a unique market niche. Our American luxury brand will be a variant of: Distinctive. Aspirational. Exotic-Elegant-Electric. Or maybe something entirely different, but still addressing a clean mobility future. (We’ll be revealing our actual updated branding and marketing beginning in the latter stages of 2023.)
Whatever we decide, we expect to build a competitive advantage by being a mirror of our customers in an industry that will soon be bursting at the seams. We truly aspire to drive change beyond the norm, building vehicles that inspire positive transformation in the world.
Select a strategic direction, extol the differentiators, and state the story. An entire organization – inside and out – should enthusiastically speak with one voice, unapologetically dispensing core messaging over and over again.
U.S. businesses lose nearly $40 billion annually due to poor customer service. The EV world – where there are often unique customer demands – is not an exception to this rule. In fact, as the segment expands, superior service is actually becoming a differentiator. While we’ve all been rightfully focused on sales, many of the shiny new vehicles have become a bit road-worn and require regular maintenance and occasional repairs.
This is where a breakdown occurs. A quality customer experience should be mandatory. Developing well-schooled EV service techs is an astute investment that is too often overlooked.
The Next Chapter
The transition into EVs and, more broadly, the next chapter of automotive will be defined by the experiences that automakers create for customers. As media and digital interactions move deeper into the fabric of society, the ability and desire to create an unbroken connection between the life of the consumer and the products they consume will be an increasingly prevalent focus.
It will not be the buying, the service, or even the driving that build sales. Instead, it will be how the vehicle can be inserted into the continuum of a consumer’s life to complement their sense of self and future aspirations.
In April, Marques McCammon was named president of Irvine, Calif.-based ultra-luxury carmaker Karma Automotive. His 30-year auto industry career across four continents includes engineering, manufacturing, brand leadership, marketing, and software-based product advancement.