The competitive environment of electric vehicles: An analysis of prototype and production models William Sierzchula, Sjoerd Bakker, Kees Maat and Bert van Wee

Product Life Cycle cyclical pattern of product development

Goal Uncover the industrial dynamics during the early transitional phase and draw conclusions about EV becoming competitors to ICE vehicles

1) era of ferment technological breakthrough through competence enhancing/destroying innovation

2) incremental improvements emergence of dominant design

3 To what extent are firms making commercial or passenger vehicles models?

4 How do the performance characteristics of EV models compare to conventional ICE automobiles?

2 What (if any) are the differences in the characteristics (class and performance) of vehicles made by incumbent and startup firms?

1 What classifications of EV models are manufacturers producing?

Eco Innovations

Factors for success Consumer preferences, product energy efficiency and government regulation

Consumers often willing to pay premium prices

Lower operating costs

Companies are more likely to calculate costs

Supported through government regulations

The market is limited to niches and eco-enthusiastic early adaptors

Study

Data Unique set of electric vehicle prototype and production models from 1991 to 2011. Overview of the percent of EVs that were sold, leased or converted relative to all vehicle sales in the US from 1999 to 2008

Sources government reports, professional websites and auto shows

Results

Companies that manufactured an EV model increased from one in 2003 to 76 in 2011

Low barriers to enter during technology ferment era

Large incumbents are investing in EV technologyand have been actively developing models

Number of chemistries increased from one in 2005 to 13 in 2010 and 10 in 2011

Conclusion

Industry focus is on small passenger vehicles and niche vehicles

Large incumbent firms developed EVs with performance and size similar to mass market automobiles