How have a great business with Electrified Vehicles

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Automakers must strike the right balance between selling enough electrified vehicles (EVs) to comply with tightening regulatory fleet emissions and fuel economy targets. To compound matters, automakers cannot afford to lose focus on combustion engine models, which are often more profitable.

Within this report, McKinsey is releasing new findings from a global survey on consumer attitudes toward EVs that include plug-in hybrid and battery electric vehicles. Our analysis reveals current pent-up consumer demand for EVs with some stubborn and well known barriers, but also provocative and unexpected opportunities. The report highlights three key messages:

• Consumer demand is starting to shift in favor of electrified vehicles and has strong disruption potential
• Automakers will need greater agility to address challenges that hinder EV profitability
• Automakers can “electrify” their customer base – more profitably – by offering more tailored EVs and deploying new business models

Download the full report.

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