Abstract:

McKinsey’s proprietary Electric Vehicle Index (EVI) assesses the dynamics of the e-mobility market in 15 key countries worldwide. EVI results for 2019 and the first quarter of 2020 provide important insights about market growth, regional demand patterns, market share for major electric-vehicle (EV) manufacturers, and supply-chain trends. The EVI explores two important dimensions of electric mobility i.e. market demand and industry supply. The Electric Vehicle Index for 2020 shows that Nordic countries lead for market demand, while China and Germany dominate industry supply. Key EV markets suggest shifting regional dynamics, with China and the United States losing ground to Europe. To win, automakers and suppliers must develop a  detailed view of what’s happening in each market by monitoring the regulatory environment, customer preferences, infrastructure development, and the moves of competitors—especially new entrants, including start-ups from outside the industry. Companies that match customer demand with suitable EV models and catch regulatory tailwinds may secure the most promising pockets of growth going forward.