The B2B platform for full-electric and plug-in hybrid electric vehicles: Industry News

A new McKinsey study suggests a completely new approach of market segmentation to achieve significant savings for electric vehicle drivers. By focusing on the special needs of different driver groups the electric vehicle industry could target 38 million US households with tailored battery-powered vehicles that are much more efficient. The McKinsey report has been added.

A recently published study states that a radical new form of market segmentation could be more successful for a global implementation of electric transportation. Instead of trying to satisfy the needs of 95% of customers the carmakers should rather design electric cars with shorter kilometres ranges tailored for the actual driving mission, such as suburban driving, delivery vans or taxis.

The McKinsey study explains that the existing cars, gasoline as well as hybrids and electric vehicles, are indented for multiple driving missions of different lengths and speed. Considering the cost of energy storage that is a critical factor for electric vehicle the design as well as the marketing strategy should be more focused on the particular needs of a driver to not carry needless and expensive batteries around.

The primary driving mission counts

The report considers two major groups of driving missions: stop-and-go driving in town and commuting. While the second group has higher energy storage needs mainly due to the higher driving speed (and not mainly due to the greater range according to McKinsey), the “driving around town” drivers are the perfect target group for an electric vehicle. As a result, the researchers argue that the optimal battery size for a plug-in hybrid only used for the town is one-quarter that required by a sales representative. This translated to the battery cost would lead to significant cost savings of possibly thousands of dollars or euros.

With McKinsey’s estimation of 38 million out of over 100 million households in the US that could purchase an all-electric or plug-in electric vehicle, the main market segment is still large enough to be profitable. The researchers suggest segmenting this market again and offering vehicles with different ranges, such as one with 60 kilometres and another one with 30 kilometres of all-electric range.