In July 2006, the newly established auto company Tesla presented
an exclusively electric-powered sports car at a sticker price of
more than $100,000. A host of celebrities ordered one on the spot,
and suddenly e-cars were hot. Within a few years, what had been a
sideline became an image platform on which the industry's hopes for
the future rested. Though virtually none of the carmakers had an
e-car to offer for daily use, from that point on, the media
landscape, the political scene and the motor shows were dominated
by battery-powered vehicles.
Since then, every major car manufacturer has joined the
e-mobility bandwagon. German premium automakers were quick off the
mark: The past year has seen a crop of pilot and concept cars, with
two e-Tron prototypes from Audi, the E-Mini and the ActiveE from
BMW, and the Smart Electric Drive (ED) and BlueZERO from
Mercedes-Benz. Japanese companies like Toyota and Honda and US
companies such as General Motors and Ford are in the fray, along
with Chinese brands like BYD, Cheery and Geely. By 2012, there will
be more than 100 partial or fully electric vehicle brands in the
market.
But when and how will the e-car genuinely become a mass-market
product? What justification is there-economically as well as
ecologically-for consumers to turn to electric vehicles? And how
quickly will these vehicles catch on? In this report, Bain &
Company looks at the market opportunities, the ecological case for
the e-car, the economic feasibility of electrification and the
challenges facing the automotive industry today.
1. In 10 years, at the latest, the e-car will be a
mass-market product
A recent worldwide study by Bain & Company demonstrates that
customers genuinely want e-cars. They are excited by the image, the
technology, the environmental advantages and- for those who have
already been able to drive one-the sheer driving experience. In
addition to this customer-led "pull," the trend toward e-mobility
is also accelerated by numerous and sustainable "push" factors.
First among them is cost. The more battery prices fall to a level
of economic viability while fuel prices rise, the more economical
e-cars become compared with conventional vehicles. Second,
consumers and governments in densely populated urban areas eagerly
await e-cars as a means to reduce their local emissions. Third,
national governments are trying to meet their climate protection
targets and at the same time promote homegrown industry. Finally,
car manufacturers must dramatically reduce the [CO2 levels their
cars emit and, sooner or later, will put their design emphasis on
vehicles with electric propulsion. These four factors will create
huge growth potential for electrification technology before the end
of this decade-and they present a unique opportunity for the auto
industry.
In this scenario, we estimate that, by the year 2020, half of
all new cars registered worldwide will have an electric drivetrain,
even if the majority are also likely to be fitted with a combustion
engine-either as a backup "range extender" or as a full or plug-in
hybrid. And 10 percent of all new cars in 2020 will be entirely
battery-powered e-cars, pure and simple. These cars will primarily
be used for daily driving and commuting, and drivers will be
accustomed to their limitations. For longer trips, consumers will
either use another vehicle with greater range or turn to
car-sharing or public transportation. Again, costs will be a major
factor. Not only will e-cars offer a good environmental image, but
by 2020 they will be no more expensive than conventional
vehicles-in fact, their overall cost of ownership will be far
cheaper.
What about those consumers who cannot manage with the current
range of purely battery-powered cars that run 100 to 150 kilometers
(about 60 to 90 miles) on a full charge? Or those who cannot afford
a second car? Even for those traveling longer distances in and from
the suburbs, there is still no need to forgo e-mobility. Their
option will be to use a car with a smaller battery and an
additional combustion engine as an emergency power plant. In that
way, most driving can still be done in electric mode-which will
soon be an essential requirement to enter the environmentally
restricted zones that many cities are planning to create. Indeed,
in the inner core, cities will offer concessions for e-cars-such as
free parking, use of taxi lanes or exemption from urban center
tolls-if they do not restrict entry to emission-free vehicles
altogether.
2. E-cars are being launched as today's new lifestyle
product
An extensive global market survey by Bain in 2008 and 2009
identified an annual potential of 350,000 e-car customers
worldwide, including 100,000 in Europe alone. Those surveyed said
they would buy an electric car even at twice the price of the
comparative conventional city car, used as a baseline in the
survey. These customers are predominantly high-earning,
environmentally aware city dwellers who already own a premium
vehicle. They said they would use the e-car mainly as a second or
third car, mostly for short trips. This group of customers, which
we call the "Premium 2.0" segment, is not price sensitive in that
by buying an environmentally friendly e-car they can be seen to be
green.
The example of the Tesla Roadster shows that these early
adopters are also motivated by an enthusiasm for technology and by
the desire to stand out-the same buying criteria that apply to
other innovative high-tech products. The e-car brings an added
awareness that their drivers are doing something good for the
environment. What's more, this group feels a need to pioneer
ecological trends, and to be seen as doing so.
To date, only a few people worldwide have driven the various
e-cars that have been built as prototypes or in small lots. BMW,
for example, is conducting field trials in Berlin and Los Angeles
with 600 E-Mini prototypes. Daimler has 100 Smart Electric Drive
cars on the streets of London and has just started another field
trial with 1,000 new-generation vehicles in various major cities.
Tesla customers are testing some 1,000 cars-including 150 in
Europe, and the feedback from drivers, after a brief period of
familiarization, is positive. Their verdict: "We want to buy these
cars. They are already technically good enough; they're fun to
drive and environmentally friendly."
Drivers' new feelings of satisfaction have little to do with
conventional premium attributes, such as luxury, size or power. On
the contrary, with an e-car, the Premium 2.0 consumers want to
express a new attitude. Their motives for doing so vary: Some are
eager to be seen as technological pioneers; others want to get away
from conventional models that are more and more alike; still others
see the e-car as a political statement. One telling comment from a
US driver was: "We want to make our country more independent from
oil." Broadly speaking, this growing customer segment is trying to
live a more ecologically sound life. With such undercurrents, the
e-car provides a personal-values platform for a new lifestyle that
combines ecological awareness with individual mobility in urban
centers.
The Chevrolet Volt, slated to launch later this year, shows how
stylish e-cars can stimulate enthusiasm. The Volt will be powered
exclusively by an electric drive that will primarily draw power
from a battery charged by an electric outlet. However, the car will
also have a small combustion engine that can generate power for
longer trips. This e-car concept is called a range extender.
Thousands of potential customers in the United States are eagerly
awaiting the vehicle's launch. They are even discussing on Internet
forums how to optimize their daily routes so that the car can be
driven exclusively in e-mode. E-car communities are springing up,
and the media is stoking patriotic feelings by exhorting people to
"buy American high-tech." The Volt has everything it takes to be a
market success-not the least of which is the $7,500 tax incentive
the US government is offering every buyer. So beyond its "curb
appeal," the car is also an attractive cost proposition, even given
the current comparatively lower gas prices in the United
States.
3. The electric car is not just a product variant-it
represents a fundamental system change
The electric car will be the automotive industry's equivalent to
the iPhone. When Apple presented its new product to the world in
2007, cell phone manufacturers scoffed.The iPhone did not have a
removable battery and required recharging almost daily because of
its high power consumption. In contrast, one could use another
manufacturer's phone for a week without having to recharge it.
Despite these apparent drawbacks, to date more than 35 million
people worldwide have bought an iPhone. The fact is, the iPhone is
not a new mobile phone, but an entirely new product that allows its
customers to enter a previously unimaginable world of applications,
turning one of the previous paradigms of the telecommunications
industry on its head. The electric car has the same kind of
potential.
Customers who buy an e-car are not just buying a new car. They
are changing to a new system. Suddenly, the car no longer uses
gasoline, it uses electricity. The ride is whisper-silent but
dynamic beyond accustomed standards. There are no flat spots or
jerky gear changes, and the car is extremely nimble in the city. It
also produces no local hazardous emissions, with a corresponding
positive effect on the user's personal CO2 balance. The related
infrastructure problems now shift to the power generators. But with
today's energy mix in Europe, e-cars such as the Smart Electric
Drive have a CO2 output of just 75 g/km. Drivers will also
benefit-immediately, and for the entire life of the vehicle-from
lower carbon emissions from the power station network and from the
move toward greater use of renewable energy for power generation.
That also represents a genuine paradigm shift.
For many emotional reasons, rationally supported arguments and
data comparing the combustion engine and the electric drive will
fail. When a systemic change takes place, customers no longer
perceive product attributes they have come to expect in the past
(such as an 800-kilometer or nearly 500-mile range on a tank of
fuel, for instance) as quite so important anymore. Customers want
the new product because it offers new opportunities. Customers
switched to the iPhone-like system because of the new apps, not
because of how long the battery lasted on standby.
Some governments have already gotten the message that the
development of the electric car heralds a systemic change. Both
China and the United States have adopted policy positions that
their domestic auto industries must be supported in the development
of electric vehicles and that e-car sales must be significantly
subsidized with tax dollars. In both countries, this policy shift
is also being hastened by the realization that global competition
is overpowering their domestic auto manufacturers. Consequently,
they are seizing the e-car opportunity and substantially investing
in new technologies. The declared aim is to develop massproduced
e-cars and bring them to market as rapidly as possible. In Europe,
France is alone in adopting a clear stance in support of its
domestic auto industry. Every French customer will receive a $6,000
government subsidy per French car, and the manufacturers PSA and
Renault are receiving generous funding.
Are such subsidies justified in industrial policy terms? History
says yes, as governments have played a role in the introduction of
every significant new, transformational technology. For example,
today's individual mobility is only possible because governments
have made considerable investments in roads and infrastructures.
The global telephone and data network, too, would not exist were it
not for major funding from the public coffers. The huge investment
in the first transatlantic cable could certainly not have been paid
for by the few international telephone customers of the day.
Based on that historical basis, there would be little
justification in leaving the first buyers of e-cars to finance the
still very high cost of batteries on their own. Only when
sufficient numbers of batteries are made and sold will the
production costs fall, allowing the development cost to be
amortized across large volumes.
Practically speaking, of course, people no longer question if
e-cars will be subsidized, but merely where and to what extent. The
coming systemic change will arrive sooner in regions with high
e-car subsidies, and their local industry will have a head start.
So this sea change in technology will also be a contest among
regions.
4. E-cars do not need an expensive infrastructure to
succeed
The debate on e-mobility frequently revolves around
infrastructure: public recharging stations, plug standardization
and systems for swapping rechargeable batteries. However, Bain's
analyses show that the success of e-mobility is not dependent on
the development of a costly public backbone for the switch to any
large extent. Most potential customers simply do not need anything
new; they would use their own electric outlet or one provided by
their employer. The standard charging process is accomplished using
domestic electric power via a 110- or 220-volt outlet, with between
six to eight hours required for charging. Bain surveyed consumers,
who were asked about their personal charging options for a future
electric car, and three typical user profiles emerged:
Type 1: "The independents"
Some 50 percent to 80 percent of e-car users have their own
garage or a parking space close to their home (in the United
States, the proportion is 80 percent to 100 percent). When finished
driving for the day, these users would connect their e-car to a
normal electrical outlet. The time needed for a full charge
overnight is more than enough for their daily energy needs. All
that is required is to equip the parking space or garage with a
standard electrical outlet. Around 50 percent of interviewees
already had one. The investment needed would be minimal, and the
customer would expect to pay for it. Some e-car manufacturers are
likely to offer special charging services and products (so-called
wall boxes, including an electricity supply contract) for these
"independents." Automakers would sell the wall box under their own
brand, coincidentally providing an opportunity for an electricity
supply partner to acquire new retail customers.
Type 2: "The office chargers"
Approximately 40 percent to 70 percent of all drivers use a
company parking space. Many employers could provide staff with
charging facilities at the office. For example, Google has already
installed company parking spaces with solar-powered charging
facilities at many of its locations. Here too, the eight-hour
workday is enough to charge an electric car with more than enough
energy for daily needs. For companies the investment cost is
manageable and can be partially integrated into an already existing
infrastructure (lighting, for example) and billed at simple flat
rates with no need for costly meters. A new law in France actually
requires new office buildings to have such infrastructure.
Type 3: "The street parkers"
Just 15 percent of drivers have no opportunity to charge an
e-car either at home or at work. This relatively small group is the
only one currently excluded from using an electric car, at least
until public charging facilities become available. The development
of public charging stations (for example, using ordinary on-street
parking spaces) or charging stations available for public use (for
example, in parking garages or shopping malls) will be dependent on
political will rather than actual demand. Again, most e-car users
would not be reliant on such new infrastructure. What's more,
electric charging stations with integrated, intelligent billing
technology would be expensive and viable only as a marketing tool,
if at all.
In the midterm, the standard electrical outlet will remain the
norm in most cases. For "emergencies," quick-charging stations will
likely develop. That is, in fact, an emerging business opportunity
for gas stations. With a relatively low-cost modification to the
current infrastructure they already have, they could allow
customers to top off with an 80 percent charge in just 15 to 20
minutes. During this time, the gas station could provide coffee and
convenience shopping-a win-win situation.
To supply such a fleet of e-cars, most experts do not see the
need to build new power plants or massively invest in the existing
electricity grid. Even if e-cars accounted for 20 percent of the
vehicles on the road, power consumption would rise by only around 4
percent. E-cars would also be charged predominantly overnight when
the generators have unused capacity. Nevertheless, demand from
suburbs with a high e-car penetration would probably require some
investments in higher-transformer station capacity or intelligent
demand control in peak periods. Yet, with more future electric
power being generated decentrally-solar panels on house roofs, for
example-these costs should be limited.
5. The available e-car technology today is already "good
enough"
One issue for the immediate acceptance of the e-car is whether
it is already "good enough" for consumers. Two aspects of e-car
technology might argue against this idea: The batteries required
make e-cars as much as 50 percent more expensive than conventional
cars today, and their range is limited to around 150 kilometers (93
miles) on a full charge. The extra-cost issue may not be as
daunting as it seems. It is ultimately a matter of the economies of
scale in battery production and of government subsidies, topics
discussed in more detail later. However, the range required of a
battery is solely a matter of customer acceptance.
The field trials of the Smart Electric Drive and the E-Mini are
being accompanied by extensive market research. In both cases,
customer surveys show that the drivers were predominantly satisfied
with the cars. Indeed, for a substantial majority of the users,
these e-cars-despite their so-called handicaps-are already good
enough for day-to-day mobility needs. Likewise, in numerous
projects and studies, Bain determined that an attractive market
exists both for e-cars charged exclusively via an electrical outlet
as well as for vehicles with an auxiliary combustion engine. Let's
look at each type of e-car:
Market opportunity #1: "Battery only"
E-cars powered solely by batteries for daily commuting, bought
by users mainly as a second car, are definitely a competitive
prospect. Today in Germany, there are around 10 million second
cars. Research by the German Federal Ministry of Transport has
shown that Germans travel an average of 37 kilometers (almost 23
miles) per day, 61 percent of which is by car. In the United
States, the distance is around 60 kilometers (37 miles), with cars
accounting for 86 percent of this distance. For electric cars, that
means 80 percent of drivers can park their e-car at home to
recharge in the evening with well over half the battery charge
still remaining. For vacations and special trips that exceed the
battery range, drivers of purely battery-powered e-cars either will
use their conventional car or rent a vehicle.
Market opportunity #2: "Battery plus"
For drivers unwilling to forgo the range of a gasoline-powered
car, plug-in hybrids are ideal. They can be used predominantly for
city driving (such as the Toyota Plug-in Prius announced for 2014),
or as range-extender hybrids (for example, the Chevrolet Volt).
Operated in electric mode for daily driving in the city (20 to 60
kilometers or 12 to 37 miles), they can also be used like
conventional cars (with a range of more than 600 kilometers or 370
miles). Lower-priced batteries that are substantially smaller than
those used in pure e-cars compensate for the costs of the dual
drives.
Here is an opening for the auto industry's capacity to
innovate-a traditional strength. Indeed, the large number of
innovations embodied in the range-extender concept for the
Chevrolet Volt is remarkable. In combination with an intelligent
control system, it provides an entirely new driving experience-one
that's on a par with an eight-cylinder engine but with the gas
consumption of a three cylinder.
6. Battery costs will be at a mass-production level by
2015
To convert a Smart car into an electric car, the production
costs of the necessary 16 kWh lithium-ion battery-which supports a
range of about 130 kilometers (80 miles)-would currently fall
between $8,000 and $10,000. Some 75 percent of that price would be
the result of small-scale production using largely manual
processes. The raw materials would account for only 25 percent of
the costs. In all other respects, an e-car is about as expensive to
build as a conventional car with a combustion engine. The electric
drivetrain roughly equates to the cost of the traditional
components such as the engine, transmission, fuel tank and
exhaust.
The battery is the central economic impediment to the widespread
rollout of the e-car today. But what would a battery cost if
production were running at 100,000 units per year? Or, to put it
another way: When will batteries for electric cars be affordable?
In an extensive process of reverse-engineering and by applying
benchmark analyses, Bain made some calculations based on comparable
industrial cost curves.
On the basis of those calculations, it appears that from 2015
and beyond, batteries will be available that can make the electric
car a viable massmarket product. Bain expects to see manufacturing
costs of $250 to $350 per kWh by 2015, and $150 to $250 per kWh by
2020. Besides the necessary automation of processes and assembly,
this also assumes that other, lower-cost basic chemicals and
simplified testing and inspection procedures will be introduced.
Given the number of engineering hours and the amount of research
funding currently devoted to that technology worldwide, the
scenario appears entirely achievable.
By 2015, the battery for a Smart Electric Drive or a Chevrolet
Volt is likely to cost only around $4,000; the battery for a Toyota
Plug-in Prius, just $2,500. Assuming the battery will have a
residual value of $800 to $1,200 at the end of its lifecycle, one
of these vehicles would have to amortize $1,700 to $3,400 in
battery costs over 10 years before interest. At current fuel and
electricity prices, a Smart Electric Drive covering around 10,000
kilometers (6,200 miles) per year would represent a cost saving of
around $500 per year a gasoline-powered model. What's more, if in
2015 the government were to subsidize one of these cars to the tune
of $2,400, buying an e-car would pay for itself in just two and a
half years. Historically, that is equivalent to the proliferation
of diesel engines that initially struggled to compete with gasoline
models and became widespread only thanks to subsidies-either
through taxation or the price of diesel.
7. The electrification of the automobile is compelling
and inevitable
Automakers are already grappling with ever more stringent global
CO2 and environmental legislation. The recent announcement by US
President Barack Obama that carmakers will be compelled to reduce
drastically the fuel consumption of their engines is a case in
point. Some manufacturers will have to slash the CO2 emitted by
their vehicles by 20 percent to 30 percent by 2015 or face
substantial penalties. And that is just the beginning. By 2020 at
the latest, for example, all car manufacturers in Europe will
have to comply with a CO2 limit of 95 g/km. For some, that will
mean a reduction of up to 50 percent compared with today. In the
case of larger vehicles, this reduction will barely be achievable
by such conventional means as the downsizing or turbo-charging of
combustion engines.
Automakers have a variety of technological means to meet these
climate protection goals. For example, they can cut fuel
consumption by 3 percent to 5 percent by decoupling ancillary
modules such as air-conditioning, power brakes and power steering.
Through extensive simulations, Bain has analyzed the potential
savings yielded by all the available means. Yet it is clear that
the goals for 2020 can be achieved only if electric cars account
for a high percentage of the vehicles sold. That means that many
manufacturers will need to convert their large vehicles to hybrids
and electrify their smaller ones on a large scale to reach the
across-the range target of 95 g/km CO2.
Alternative technologies, such as hydrogen fuel cells, for
example, are still some 10 years away from serious production.
What's more, the efficient production of hydrogen as well as
transport, storage and the development of H2-filling stations are
still unresolved. Nevertheless, it remains important to invest in
that technology, since it appears to offer the only alternative in
the commercial-vehicle sector. Given the great weight of such
vehicles and their loads, it is unlikely that battery power alone
can offer a universal solution for trucks. Ultimately, a fuel-cell
car is still an electric car, but with its own "power plant." That
power plant could also be a high-efficiency combustion engine
running on biofuels. With the right vehicle design, the power plant
would be needed only on rare occasions to provide energy- for
example, on trips exceeding 60 kilometers (37 miles).
Ambitious local and regional climate targets are here to
stay-and inevitably, pave the way for greater e-mobility. A
substantial proportion of the cars of the future will come equipped
with an electric drivetrain, and will be powered either by a
battery, combustion engine, fuel cell or a mixture of these.
Conclusion: The race for the e-car has already begun.
Those that wait too long will lose!
The race for leadership in e-cars goes beyond auto
manufacturers-it encompasses regions, nations and governments. The
new technology promises a transformational shift in the auto
industry: With e-cars, once again, every manufacturer in every
country is at the same starting line. As in all races, the first to
accelerate is likely to lead the pack.
Recognizing that, governments across the globe are developing an
e-mobility agenda to ensure the competitiveness of their e-car
industry. Japan, one of the first countries to commit to the
development of electric cars, has long followed a collaborative
approach. The government works with industry players in areas like
policy and setting standards and encourages industry players to
invest in technology and infrastructure development. The government
has also invested about $330 million in R&D to develop battery
technology.
In the UK, government sees electric vehicles as a means to an
end of aggressively cutting CO2 emissions. In the last few years,
the UK government provided funding support to industry-led
demonstration and collaborative R&D projects. And from 2011, UK
consumers of electric vehicles can take advantage of subsidies of
$3,000 to $7,000. London is leading the charge in e-cars; it
provides free parking in many areas for e-vehicles, is aggressively
switching the city fleet to electric autos and is building a
comprehensive network of charging stations across the city.
Another aggressive player is Israel, where the government has
"authorized" a private electric vehicle service provider to build
and operate the infrastructure and ensure the growth of a vibrant
e-car industry in the country. In China, too, the government is
actively promoting the development and rollout of e-vehicles. The
goal: to ensure that at least 5 percent of all passenger car sales
in 2011 come from new energy cars.
With governments pushing the accelerator on e-vehicles,
automakers realize they must change gears fast to service the
growing demand for e-mobility. Joining the fray are major players
with well-known global brands-as well as new entrants who are fast
gaining ground with new offerings, in this suddenly level playing
field. The Chevrolet Volt from General Motors, the Nissan Leaf and
the Mitsubishi i-MiEv will all be launched before the end of this
year-the first e-cars developed and manufactured using genuine
mass-production processes. The Chevrolet Volt is a true electric
car, which also has a small combustion engine to extend its range.
It is based on the concept of an e-car with its own on-board power
plant (a "range extender"). From 2011, the Volt will also be
marketed in Europe as the Opel Ampera.
Mitsubishi has already begun selling its purely battery-powered
i-MiEV e-car-with a quoted electric range of around 160
kilometers-in Japan and England. PSA plans to market the e-car
versions of the Peugeot and Citroen based on the i-MiEV while
Renault will launch four different models before the end of this
year.
German auto companies are readying their offerings. Daimler's
Smart Electric Drive is due to go on sale in 2012 and Volkswagen is
expected to make its e-car debut with its ultra-compact Up model in
2014. BMW plans to launch a two-seater city car code-named Project
I in 2013. Sensing the opportunity to emerge as leading players in
an evolving e-car global market, China's auto manufacturers are
taking aggressive steps to make their mark. China already hosts
some of the world's leading battery manufacturers. Battery and
automaker BYD is expected to launch an e-car for the US market this
year. At the recent Geneva Motor Show, Daimler announced that it is
embarking on an extensive venture with BYD for the joint
development and production of e-cars.
Many more such collaborations will be the norm as the market for
e-vehicles matures. Established auto manufacturers with leading
auto brands will find consumers have a new notion of "premium." New
entrants in electric vehicles will bring innovative technology to
the table, but over time will need to develop brands and
distribution channels. All auto manufacturers will have to rethink
strategy based on the consumer's emerging needs. Increasingly, for
example, while buying cars people will not ask for mileage, but
charging time-how far a car goes on a full tank will matter less to
e-car owners than how quickly it recharges.
The e-car presents the automotive industry with the most
important technological change in its 100-plus-year history. As
established auto brands line up with new e-car companies, the field
is once again open. The market for e-vehicles may seem small right
now-but it is slated to increase exponentially as e-mobility
gathers momentum with better infrastructure, more government
support and steadily increasing consumer demand. For automakers,
parts suppliers or automobile manufacturing nations, the lights are
flashing green. Those that are quick off the mark, change gears
fast and ride over obstacles are likely to win the most ground.
Glossary
Electric car (e-car): An electric car has a
drive system comprising a battery and one or more electric motors
as the key elements. In principle, the battery is charged with
electricity from an electrical outlet. Provided the battery is
large enough (depending on the weight and size of the car), an
electric car has a range of 150 to 200 kilometers (93 to 124 miles)
before it has to be plugged back in. An electric car can be charged
via any normal electrical outlet. Dependent on the residual charge
and the size of the battery, the charging process takes between 15
minutes (for a heavy current charge) and eight hours (for a normal
charge).
Range extender: To extend their range, some
electric cars have their own "power plant" on board. These vehicles
are called range extenders or serial hybrids. The power plant
provides the electricity required to keep driving when the battery
has been discharged. As a result, the vehicle is not dependent on
lengthy charging times and is more flexible in range. The power
plant may be a small gasoline or diesel engine that drives an
electrical generator. Fuel cells that generate electricity directly
from hydrogen can also be used as the power source.
Plug-in hybrids: Vehicles that can be driven
both directly via a combustion engine and by an electric motor are
called hybrids. If the battery of the independent on-board electric
drive system is large enough, the car can also be charged from an
electrical outlet-referred to as a plug-in hybrid, which also ranks
as an electric vehicle since it can travel a certain distance
entirely under electric power and without producing emissions.
Today's plug-in hybrids have a purely electrical range of up to 30
kilometers (18.5 miles).
Full/mild hybrids: Classic full or mild hybrid
cars cannot be charged from an electrical outlet. Therefore, they
do not rank as electric cars, and are not a form of e-mobility.
Nevertheless, this technology, in which the combustion engine is
supported by one or more electric motors in specific driving
conditions, does provide alternatives. The electric motors are
powered exclusively by surplus energy released during braking, for
example, and stored in a comparatively small battery. Particularly
in the case of large, heavy or high-performance vehicles, some
substantial savings can be made in fuel consumption and CO2
emissions. This technology can also be seen as a transitional
solution on the way to electro-mobility.
Dr. Gregor Matthies is a partner at Bain & Company in
Munich and leads the European Automotive practice. His clients are
primarily companies in the automobile and aerospace industries as
well as private equity fund portfolio companies. He advises on
issues of strategy development, organization and restructuring.
After studying aviation and space technology in Munich, Gregor
Matthies was awarded a doctorate in electrical engineering at the
University of Duisburg.
Dr. Klaus Stricker is a partner at Bain & Company in
Frankfurt. His clients include companies in industry and the
automotive business. He advises on issues of strategic
reorientation, restructuring and reorganization. He also assists
corporate clients in developing and implementing operational
improvement programs. Klaus Stricker studied industrial engineering
at the Technical University in Wien and was awarded a doctorate in
production engineering.
Dr. Jan Traenckner is an electro-mobility expert. After
completing studies in electrical engineering and obtaining a
doctorate as an engineer, he went on to work as a corporate
consultant. As an expert in technology and innovation, he has been
active since 1997 as an independent investor and strategy
consultant. For the past two years he intensively studied
e-mobility and also has experience in the strategic exploitation of
technologically driven megatrends. Dr. Traenckner helps industrial
companies better understand the new megatrend of e-mobility and
position themselves accordingly.
