4theditioneReadiness2023SurveyReportCustomerneedsandrecommendedactionsfore-mobilityplayersSeptember2023Agenda01.ExecutiveSummaryp.0502.Consumerviewpointsp.0702.-EVOwnersp.1302.-EVProspectsp.4102.-EVScepticsp.5703.eReadinessIndexp.6104.Recommendationsonthewayforwardp.78eReadinessReport20232The4theditionofthestudyprovidesupdatedperspectivesontheshort-termdevelopmentofthee-mobilitybusinessin18marketsAboutthestudyCustomerPrivatecustomerstyperepresentativeofthedrivingpopulation1234ProductPassengersegmentCars2020202120222023TechnologyBEV+PHEV1stEdition2ndEdition3rdEdition4thEdition4Countries6Countries7Countries18CountriesSurvey12,500+CAWIinterviews(Jan-May2023)eReadinessReport20233Thisyeareditioncovers18countriesacrosstheglobe,groupedintothreeregionseReadiness2023–CountriesinscopeNANorthAmericaEMEAEuropeandMiddleEastAPACAsia-PacificNorwayGermanyPolandChinaUKThailandCanadaSwitzerlandJapanUnitedStatesFranceSpainHongKongItalySingaporeIndiaUAEAustraliaeReadinessReport2023Source:Strategy&401.ExecutiveSummaryeReadinessReport20235KeyinsightsfromtheconsumerresearchsampleConsumersdemandeReadinessIndex•Consumersshowastronginterestine-mobility,withc.30%ofthosesurveyeddisclosing•InEurope,Norway,SwitzerlandandanintentiontobuyanEVinthenext2yearsGermanyarethemoste-readycountries,drivenbyamaturecharginginfrastructure•EVOwners(6%oftherespondents)aremainlyhigh-income,middle-agedmaleslivinginandahighconsumerdemand.ItalyandcitycentreswithaccesstoprivateparkingspacesSpainlagbehinddespitegenerousgovernmentincentives•EVProspects(61%oftherespondents)have~20%lessincomethanEVOwners.Ofthe6personasidentified,TechEnthusiasts,DreamersandPragmaticarethe3determined•InAPAC,HongKong,ChinaandSingaporetohavethegreatestintentionofbuyinganEVandrepresentc.70%ofthedemandinthearethemoste-readycountrieswithhighnext2years,suggestingthattheEVmarketisshiftingtowardsamassmarketcustomerdemandand,especiallyinHongKongandChina,awellestablished•Sceptics(31%oftherespondents)arepredominantlywomenwithaloweravailablecharginginfrastructureincomeandc.6yearsolderthanEVProspects•AustraliaappearstobetheleasteReady•Onlinevehiclesalesrepresent20%ofEVsales,mainlyforpremiumvehicles,with65%countryacrosstheentirepanelofconsumersconsideringpurchasingtheirnextvehicleonline,thisisdrivenprimarilybyconvenienceandpricetransparency•UsedEVinterestissignificant,with60%ofEVownersdeclaringaninterestinpurchasingausedcarduetothelowercostsandimmediateavailability.However,uncertaintysurroundingbatterystateofhealth(SoH)remainsakeybarriereReadinessReport2023Source:Strategy&602.ConsumerviewpointseReadinessReport20237Consumershavebeengroupedinto3mainclusterswithin3regions:EVowners,EVprospectsandEVscepticsConsumersurvey–Clustersandinvestigationareas#12,816respondents1EVowners2EVprospects3EVscepticsOutcomeFocusareaDescription/Size•PeoplewhocurrentlyownanEV•Peoplewhohavedeclaredtheirintention•PeoplewhohavedeclaredtheirtobuyanEVinthenext5yearsintentionnottobuyanEVinthenext5yearsTotalAPACEMEANATotalAPACEMEANATotalAPACEMEANA•WhoareEVowners•Whoarethekeypersonasandtheir•WhoareEVscepticsandwhataretheir•Whathasbeentheircustomerjourneydistinctivetraitsdistinctivetraits•Whataretheirusagehabits•Whatarekeyreasonstobuy•WhyaretheyscepticsandwhataretheirmainreasonsforrejectingEVsBestpracticesandlessonslearnttobeKeycustomerprofiles,withassociatedConcernsandpurchasingbarrierstobeleveragedtodefineEVspecificcustomerdemographicsandneeds,tosupportaddressedbyOEMscommunicationtojourneystargetingactionsofOEMsstimulateintentiontobuyeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey8Overall,EVownersareyounger,wealthierandwithgreateraccesstoprivateparkingspacescomparedtoprospectsandscepticsConsumersurvey–Clusterprofiles#12,816respondents1EVowners2EVprospects3EVscepticsWhatisyourannual€91k€74k€49kgrossincome?43years42years49yearsWhatisyourage?Whatisyourgender?51%male53%male44%maleWheredoyoulive?94%urbanarea92%urbanarea82%urbanarea60%yesPDoyouhaveaprivate68%yes63%yesparkingspotathome?9eReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurveyCurrentEVownerstendtousetheircarmoreoftenforcommuting,andaremorelikelytocombineitwithothermeansoftransportationConsumersurvey–Clusterprofiles#12,816respondents1EVowners2EVprospects3EVscepticsDoyoucommutewith86%yes78%yes60%yesacar?31%yes60%yes52%yesDoyoucombinethe3.2dayscarwithothermeans?4.4days4.2days20km9.8yearsHowmanydaysper23km28kmweekdoyou10commute?5.9years8.1yearsHowmanykmdoyouSource:Strategy&analysisonfeedbackfromconsumersurveycommutedaily?Whatisyourtypicalcartenure?eReadinessReport2023EVownerscommuteprimarilywiththeircarandadoptmoremulti-modalsolutionscomparedtoscepticsMobilityneeds–CommutingWhichofthefollowingmeansdoyouusetocommute?Wheredoyoutypicallyparkyourcarwhenyouswitchmeans?#12,816respondents#4,383respondentsOther3%Onthetransportation37%streetmeansInapublicCar,inparkingcombinationwithothermeansInaparkandride41%CaronlyInaprivateparkingEVOwnersProspectsScepticsEVOwnersProspectsScepticseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey11MultimodalitygainsanevenmoreimportantroleacrossallclustersduringthefreetimeMobilityneeds–FreetimeWhichofthefollowingmeansdoyouuseduringyourfreetime?Wheredoyoutypicallyparkyourcarwhenyouswitchmeans?#12,816respondents#5,772respondentsOtherOnthetransportationstreetmeansInapublicCar,inparkingcombinationwithothermeansCaronlyInaparkandrideInaprivateparkingEVOwnersProspectsScepticsEVOwnersProspectsScepticseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey1202.ConsumerviewpointsEVOwnersConsumersthatalreadyownanElectricVehicle,eitherplug-inhybridorfullyelectriceReadinessReport2023131EVownersEVownersshowsubstantialdifferencesacrosstheglobe,highlightingadifferentmaturityintheEVadoptionEVowners–Regionaldifferences#778respondentsWhatisyourannualAPACEMEANorthAmericaGlobalgrossincome?1007212091Thousand€Whatisyourage?Years48%52%60%51%Whatisyourgender?%male99%86%97%94%Wheredoyoulive?%incitycenterPDoyouhaveaprivate64%76%81%68%parkingspotathome?%yeseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey141EVownersEVownersshowsubstantialdifferencesacrosstheglobe,highlightingadifferentmaturityintheEVadoptionEVowners–Regionaldifferences#778respondentsDoyoucommutewith%yesAPACEMEANorthAmericaGlobalacar?%yes91%79%88%86%Doyoucombinethecarwithothermeans?Average67%49%62%60%daysper3.9Howmanydaysper4.84.24.4weekdoyouweekcommute?HowmanykmdoyouKmcommutedaily?Whatisyourtypical6.06.05.25.9cartenure?YearseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey151EVownersAdealershipisthemainpurchasechannelforEVs,withonlinegainingtractionforpremiumplayers,particularlyinNorthAmericaPurchasemethodWheredidyoubuyit?APACEMEANorthAmericaHowdidyoubuyit?APACEMEANorthAmerica#778respondents#778respondents74%71%69%60%56%48%Mainlyfor44%premiumand38%luxurycars32%27%5%6%4%7%7%6%20%4%Leasing/Long2%1%2%16%termrentalstore1%0%SubscriptionschemeDealershipOnlinePrivateownerCashFinancecreditsolutionLongtermrentalcontractNote:percentagesmaynottotal100%duetoroundingeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey161EVownersOnlinebuyersshowlowersatisfactionthanofflineones-exceptintheAPACregion-withonlinepaymentrepresentingakeybarriertoanend-to-endjourneyOnlinecustomerjourneyWhichactivitiesdidyouperformonline?Howsatisfiedareyouwiththeoverallpurchasingprocess?#146respondents–Multiplechoice#146respondents#632respondentsOnlinecustomerjourney100%100%ConfigurationConsultationReservationPaymentDeliveryathomeAPACAlmostall(99%)customers62%NAhadonlineconsultation46%41%APAC56%NA46%APAC45%36%EMEA12%EMEANA67%ofcustomers0%0%requiredhomedeliveryOnlinepurchaseNPSOfflinepurchaseNPSeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey171EVowners65%ofcurrentEVowners,wouldbuytheirnextcaronline,drivenbyconvenience,priceandareadilyavailablevehicleOnlinepurchaseintentionWhatarethemainreasonstobuyanEVonline?WhatarethekeybarriersnottobuyanEVonline?#507respondents–Multiplechoice#271respondents–Multiplechoice86%APACEMEANAAPACEMEANA84%88%90%79%74%Yes61%49%40%Wouldyoubuy42%40%YesyournextEVNoNo22%38%online?29%35%30%27%25%27%26%16%21%11%13%15%17%22%20%10%7%13%11%7%6%PurchasingBetterCarTD1atCarSalesBundleconveniencedealdeliveredhome/inwithathomeanearbyreadilyconsultantAfterIprefertoseeIneedtheIliketoIdon’ttrustIamnot(time,thanatlocationsalesnegotiatethewebsitewillingtoconfiguration,theavailableremotethecarsalesthepricepaylargeservicessumsonlineetc.)dealer-support70%57%78%beforeIbuyitconsultantshipAPACEMEANAsupportoffline1)TD:TestDriveeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey181EVownersWordofmouthisthekeytriggerforEVconsideration–thefinancialofferanddrivingexperiencearethefundamentalfactorsforpurchaseEVcustomerjourneyHowdidyoubegintoconsiderWhatwasthedecidingfactorthatledyouHowsatisfiedwereyouwiththebuyinganEV?buyingit?overallpurchasingprocess?#778respondents#778respondents#778respondentsConsiderationPurchaseLoyalty(NPS)42%46%DrivingexperienceEVICEamongtop2driversinWordofMouthconsistentlytop100%factorinallthreeregionsallregionsEMEA43%NADrivingexperienceAPAC27%55%16%0%9%52%1922%20%57%52%47%43%NAAPAC7%7%41%2%2%34%EMEAWordofMediaBrandSalesSpecializedIncentivesOverallpriceOfficialtestIdroveaSalespersonIhadthemouth&adv.loyaltyconsultantwebsitesfriend//financialdriveatthefamilycarconvincedsamemodelofferdealershipmepreviouslyeReadinessReport2023Note:percentagesmaynottotal100%duetoroundingSource:Strategy&analysisonfeedbackfromconsumersurvey1EVownersEVownersaremostlysatisfied,evenifalmosthalfofNorthAmericancustomerswouldbewillingtoconsiderswitchingbacktoICECustomersatisfaction–FocusonproductHowsatisfiedareyouwithyourcurrentEV?WouldyouswitchbacktoICE?#778respondents#778respondentsSatisfiedNeithersatisfiednordissatisfiedDissatisfiedAverageSatisfiedNoYesAverage4%6%7%8%10%6%86%24%33%49%70%88%84%87%67%76%52%APACEMEANAAPACEMEANAeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey201EVownersDrivingexperienceandloweroperatingcostsarethemaindriversofEVownerssatisfaction,withchargingstillbeinganissueCustomersatisfaction–FocusonproductWhatarethemaindriversofyoursatisfaction?WhatarethemainissuesyouarefacingwithyourEV?#672respondents–Multiplechoice#106respondents–Multiplechoice47%42%41%43%35%35%33%34%29%22%21%15%7%DrivingLowerEasinessAvailabilityofLowerLongLackofLimitedLowerHigherChargingHigherWorseexperienceoperatingcostsofchargingparkingspotsmaintenancechargingpublicchargingrangeperformanceoperatingissuesmaintenancedrivingsolutionscoststimenetworkincoldcostscostsexperienceTop2reasonsweatherAPACAPACEMEAEMEANANAeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey211EVownersMajorityofEVownerspurchasedtheircarbyleveragingpublicincentives,yet89%wouldhaveboughtanEVregardlessPurchaseincentivesDidyoumakeuseofeconomicincentivesWouldyouhaveboughtitwithoutHowdidyoubecomeawareofthetopurchasetheEV?incentives/subsidies?incentivesthatwereavailable?#778respondents#485respondents#485respondents–MultiplechoiceThesameor69%anotherEV38%50%39%38%67%No26%NAo75%YesDealerGovernmentOEMSpecializedSpecializedwebsite/websitewebsites/magazinesAPAC72%Yesapp/appappAreyousatisfiedbytheinformationcollectedregardingincentives?#485respondentsEMEA47%Yes62%22%8%c.35%ofnotsatisfiedYes9%customerscollectedinformationfromdealers7%Satisfied83%3%NeitherUseofincentivesYesNo,No,aICENovehiclesatisfiednordissatisfiedanotherEVvehicleatallDissatisfiedeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey221EVowners37%ofEVownerspurchasedachargingsolutionsbundledwiththeircar,withanadditional23%purchasingitseparatelyChargingsolutionsWhatadditionalcharginginfrastructure/servicesdidyoubuytogetherwithyourEV?#778respondentsIndependentpurchaseBundledpurchasewiththeEV23%37%purchasedinfrastructure/chargingservicetogetherwiththeEVpurchasedinfrastructure100%separatelyfromtheEV7%5%NA52%NA18%APAC25%40%APAC39%EMEA23%EMEA32%NopurchaseofchargingsolutionsChargingBothPre/Post-paidinfrastructurechargingpackageseReadinessReport2023Note:percentagesmaynottotal100%duetorounding23Source:Strategy&analysisonfeedbackfromconsumersurvey1EVownersPrice,chargingspeedandreliabilityarethekeypurchasingcriteriawhenbuyingprivatecharginginfrastructurePrivatecharging–DrivingfactorsWhatarethekeydrivingfactorswhenbuyingthecharginginfrastructure?Didyouuseanyincentiveforthecharginginfrastructure?#447respondents–Multiplechoice#447respondentsSimilarfactorsacrossallregions100%60%No40%48%ofthecharginginfrastructurecostYes0%PriceChargingReliabilityEaseofuseInstallationExtendedBrandRecomm.DesignIncludedComple-fromfriendswithinmentaryspeed(e.g.,app)processwarrantyservices&familycarpriceeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey241EVownersTheprivatecharginginstallationprocessisakeydriverofcustomersatisfaction,withcustomerslesssatisfiedwhenitisleftto3rdpartiesPrivatecharging–CustomersatisfactionwithinstallationWhowasinchargeofinstallingthecharginginfrastructure?Similarfactorsacrossallregions#447respondents%NPSScoreOEM/DealerCustomerThedealershipthroughAutilitycompany/Myown4%atechnicianhardwareprovidertechnicianMyself,throughaeReadinessReport2023Note:percentagesmaynottotal100%duetoroundingrecommendedtechnicianSource:Strategy&analysisonfeedbackfromconsumersurvey251EVownersUnpreparedinstallersandlackofinstallationprocessmanagementarethekeyreasonsforcustomersdissatisfactionPrivatecharging–InstallationissuesWhicharethekeyissuesyoufacedduringtheinstallationprocess?Similarfactorsacrossallregions#84respondents(detractors)LimitedproductknowledgeDelaysintheprocessUnforeseenproblemsAdditionalcostsDamagesduringtheprocessOthersfromtheinstallerSource:Strategy&analysisonfeedbackfromconsumersurvey26eReadinessReport20231EVownersEVownersshowedhighlevelofinterestinpurchasingadditionalproductsandservices,inparticulargreenenergycontractsAdditionalproducts&servicesWhatotherEV-relatedproductsdidyoupurchaserecently?#778respondents–MultiplechoiceAPACEMEANorthAmerica40%37%32%25%27%22%23%18%21%13%21%7%18%18%16%12%6%10%10%8%8%7%2%3%GreenenergycontractEnergystoragePhotovoltaicpanelsEnergymanagementAnyotherOtherHomeinsuranceMicro-mobilitysolutionssolutionssolutionsenergycontractsmart-homeeReadinessReport2023appliances27Source:Strategy&analysisonfeedbackfromconsumersurvey1EVownersEVownerschargetheirvehiclemostlyathome,withAPACbeingtheregioninwhichon-the-street-charginghasbeenheavilyadoptedChargingpreferencesWhichistheprimarylocationwhereyouchargeyourEV?#778respondentsAthomeAtmyofficeOnthestreetOtherMainlydrivenbyChina,HongKong,andSingapore45%4%15%1%11%18%19%38%42%23%7%7%85%74%81%51%58%62%APACEMEANorthAmericaeReadinessReport2023Note:1)Otherincludesatshoppingmalls,supermarkets,andrestaurants28Source:Strategy&analysisonfeedbackfromconsumersurvey1EVownersEVownerschargetheirvehiclemostlytwo-to-threetimesperweek,predominantlyusinggreyenergyChargingpreferencesHowoftendoyouchargeyourEV?Whichenergysourcedoyouuseathome?#778respondentsAPACEMEANorthAmerica#778respondentsGreenenergyGreygridAPAC45%55%73%33%EMEA27%NA43%57%DailyAlmosteveryday2-3timesaweekOnceaweek2times/month0%29<2times/montheReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey1EVownersEVownersareloyaltotheirchargingprovider,drivenbythelocationclosenessandtariff-subscriptionplansstillshowlimiteduptakePublicchargingWhichchargingpowerdoyouWhichtariffdoyouuse?DoyoualwaysusethesameWhatarethetop3reasonsfortypicallyuse?chargingprovideron-the-go?choosingthesameprovider?#435respondents#435respondents#435respondents#293respondents–Multiplechoice40%32%Slow(<7kW)Ultrafast(morethan50kW)25%Quick(7-22kW)WhatisavailableFast(22-50kW)IdonotknowNorthAmericanFast1%customersLocationPrice/tariffPower/speed6%areconveniencegenerallyPayYes67%moreloyalWhatarethetop3reasonsforas-you-go77%(75.8%)usingdifferentproviders?InNorthAmerica#142respondents–Multiplechoice36.4%EVOwnersuseasubscription52%plan25%22%SlowSubscriptionNo33%4%plan23%LimitedSubscriptionSelectionavailabilityofincludingmorebasedononeproviderproviderstariff/speedeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey301EVownersCharginglocationandavailabilityareakeyareasofdissatisfactionforEVownersPubliccharging–SatisfactionWhatarethemainreasonsfordissatisfactionwithavailability?#435respondents–Multiplechoice#67respondentsChargingpoint31%occupiedbyvehiclesnotchargingChargingpoint25%occupiedbyanothercustomerParkingspot25%occupiedunlawfullyChargingpoint20%notworking1)Servicessuchasrestaurants,shops,vendingmachinesandotherserviceslocatednearbythechargingstationeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey311EVownersEVownersperceiveareductionintheirEVrangeduetocarageorduringcoldweatherdrivingEVrangeDoyouseeareductioninbatterydurationcomparedtowhenthecarwasnew?(InDoyouexperienceanyrangereductionrelationtocarage)incoldweather?#778respondentsYesNo#442respondents0-10%11-20%Morethan20%0-1year1-3years4-7years8+yearsWhatisthecurrentStateofHealthofyourbattery?#398respondentsIdon’tknow70%orless75%-90%Morethan90%38%67%59%0%0%7%2%1%1%4%2%8+years0-1year1-3years4-7yearseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey321EVownersEVownersdeclareinterestforpeace-of-mindsolutions,especiallycarinsuranceandmaintenanceplansAdditionalproducts&services–Focusoncar-relatedservicesWhichofthefollowingservicesdidyoubuytogetherwithyourcar?#778respondents–MultiplechoiceAPACEMEANorthAmericaFocusofnextslide76%55%56%52%49%45%49%32%34%35%27%20%CarinsuranceMaintenanceplanExtendedwarrantyRoadsideassistanceeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey331EVownersEVownersshowahighinterestinbundlingamaintenanceplanwiththeirEV,complementingitwithpremiumservicesAdditionalproducts&services–FocusonmaintenanceplanWhichofthefollowingserviceswouldyouliketohaveaspartofWhichisthemainreasonwhyyoudidnotincludeanyordinaryyourordinarymaintenanceplan?maintenanceservice?#778respondents–Multiplechoice#448respondentsSimilarfactorsacrossallregions38%44%30%28%27%27%26%26%17%12%6%4%CarcleaningPick-up&"Tyrehotel"PriorityCourtesycarOn-the-goConciergeNotavailableTooexpensiveNotplanningPlanningonPlanningonDeliveryaccessrepairingservicetousedealerdoinglessdoingmoreserviceKmsthanisKmsthanisaftersalesincludedincludedNote:percentagesmaynottotal100%duetoroundingeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey341EVownersOEMcarappsareseenasusefultoolstomanagethecarlifecycle,scheduleserviceappointmentsandmanageEVsremotelyDigitalappWhicharethetop5servicesdoyouuse/wouldyouliketohaveinyourcarapp?Otherservicesofinterest#778respondents–MultiplechoiceAverageAPACEMEANorthAmericaRemotestart(e.g.warm-up/Pre-conditioning)91%78%Remotesupport(e.g.,livechatwithagent)69%Locateadealer/authorized59%service43%41%43%41%49%35%31%Viewbatterystateofhealthandcurrentlevelofcharging41%40%37%32%31%40%27%23%29%ScheduleandmonitorLock/unlockyourTrackyourvehicle’sSelectandpurchaseVehicle’sfeaturesRemoteparkassistserviceappointmentsvehicleremotelylocation(incl.geofencing)enhancedfeaturesguide/demonstrationeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey351EVownersGivenashortertypicalcartenure,EVownersgivemoreimportancethanscepticstocarresidualvalueResidualvalue#12,816respondentsAPACEMEANorthAmericaEVOwnersProspectsSceptics7.78.28.69.410.010.0WhatisyourtypicalYears6.06.05.2cartenure?Wastheresidualvalue64%55%75%74%56%55%ofthecarakeyfactor74%58%61%whenchoosingit?%yes35%36%31%36%39%44%Areyouawareofyour66%58%81%car'sresalevalue?%yeseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey361EVowners60%ofEVownerswouldconsidertopurchaseausedEV,yetuncertaintyofbatterySoHisakeybarrierUsedEV–DriversandbarriersWouldyoubuyausedEVasWhatarethetop5reasonsforbuyingausedEV?yournextcar?(%ofyes)#470respondents–MultiplechoiceAPACEMEANorthAmerica#778respondents66%53%53%54%45%49%51%46%49%53%47%54%45%28%40%LowerupfrontLowerconcernsaboutLowerinsuranceLowerregistrationImmediateavailabilityofcostminordamagesfeefees/ownershiptaxesthecar71%75%Whatarethetop5reasonsfornotbuyingausedEV?60%%778respondents–MultiplechoiceAPACEMEANorthAmerica50%51%57%46%52%47%43%50%43%41%46%40%44%26%23%29%GlobalAPACEMEANAFearofhiddenLackofwarranty/ReducedbatteryFearofreducedcarLackofsecondarydamagescertificationonbatterycapacityandperformance,othermarketforEV/performancethanbatteriesrelatedplug-inHybrideReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey371EVownersUsedEVcustomersseekhighercertaintyintheirpurchase,withbatterywarrantyandSoHcertificationsofferingshelpingboostthisUsedEV–DriversandbarriersWhichfactorswouldincentivizeyoutoconsiderausedEV?APACEMEANorthAmerica#778respondents–Multiplechoice91%69%65%51%53%56%43%36%41%38%38%32%34%21%23%19%17%15%BatterywarrantyDealer’scertifDealer’scertif.OEM’scertif.ofAvailabilityofvehicleAppealingfinancingofbatterySoHofvehicleSoHmaintenanceservicehistoryoptioneReadinessReport2023Notes:Eithermanufacturerorthird-party38Source:Strategy&analysisonfeedbackfromconsumersurvey1EVownersPhysicalstoresarethepreferredpurchasingchannelforusedEVs,eitherfromofficialdealers,longtermrental(LTR)providersormulti-brandretailersUsedEV–PurchasepreferencesWherewouldyoupurchaseyournextusedEVfrom?WhatarethemostimportantelementsofyouroverallusedEVpackage?#778respondents–MultiplechoiceAPACEMEANorthAmericaAverage#778respondents–MultiplechoicePhysical31%Online24%1Overallprice/value45%44%38%2Chargingsolution38%30%37%29%23%30%29%26%20%29%26%23%24%3Certification/warrantyofbattery24%13%andvehicle21%18%17%4FinancesolutionsOfficialdealerLTRStoreMulti-brandDealerwebsiteOEMwebsiteMulti-brandPrivateowner5InsurancesolutionsretailerwebsiteeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey391EVownersCustomerswhoownausedEVarelesswealthyandslightlyolderthanthosethappurchasedanewvehicle,buttherearedifferencesacrossregionsUsedEV–Focusonownersprofiles#778respondentsUsedEVOwnerUsedEVOwnerEMEANAIncome(∆withnewEVowner)APAC(∆withnewEVowner)(∆withnewEVowner)AgeResidentialarea10%ofEVOwners(∆withnewEVowner)20%7%Familysizeboughtausedcar€61k(-33k)3%€55k(-20k)€85k(-38k)44Yrs.(+2Yrs.)€74k(-27k)45Yrs.(+1Yrs.)52Yrs.(+16Yrs.)77%(-19%)38Yrs.(-5Yrs.)70%(-2%)100%(+11%)3.0(-0.4)100%(+4%)2.9(-0.3)2.2(-1.1)3.8(+0.3)Dailycommute21km(-2km)21km(-6km)13km(-8km)27km(+7km)eReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey4002.ConsumerviewpointsEVProspectsConsumerswhohavedeclaredtheirintentiontobuyanElectricVehicle(BEVorPHEV)inthenext5yearseReadinessReport2023412EVprospectsEVProspectsdisplayregionalvarianceintermsofdemographicsandmobility,indicatingdifferentneedssoughtinafutureEVEVprospects–Regionaldifferences#7,930respondents8APACEMEANorthAmericaGlobalThousand€6083667974Whatisyourannual0grossincome?Whatisyourage?YearsWhatisyourgender?%maleWheredoyoulive?%incitycenterPDoyouhaveaprivate%yesparkingspotathome?eReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey422EVprospectsEVProspectsdisplayregionalvarianceintermsofdemographicsandmobility,indicatingdifferentneedssoughtinafutureEVEVprospects–Regionaldifferences#7,930respondentsDoyoucommutewithAPACEMEANorthAmericaGlobalacar?78%79%72%78%%yesDoyoucombinethe%yes60%48%36%52%carwithothermeans?HowmanydaysperDaysper4.54.03.44.2weekdoyouweekcommute?HowmanykmdoyouKmcommutedaily?Whatisyourtypical7.78.28.68.1cartenure?YearseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey432EVprospectsWehaveidentifiedsixpersonasamongstfutureEVcustomersbasedonfourbehaviouraldimensionsKeypersonasTechEnthusiastDreamersLuxuriousPragmaticConventionalistFrugalEnvironmentalConcernedabouttheEnvironmentandEnvironmentisEnvironmentisNotparticularlyConcernedabouttheConscienceenvironment,butclimatechangeareamongthelowestcrucialbutnotworthconcernedabouttheenvironmentbutnotnottheirtopprioritytopprioritiesprioritiestheextramileenvironmenttheirtoppriorityTechnologyEarlyadopter,hasDigitalnative,feelsBuysmainstreamDigitalnative,feelsUsesbasicNotaddictedtoConfidencehighconfidencecomfortablewithtechnology,usescomfortablewithtechnologyoncetechnology,usesitwithtechnologytechnologybasicfunctionalitiestechnologyitbecomespopulartofindopportunitiesPriceWillingtopayextraIswillingtopayPriceisnotaSeeksgoodSavingisimportant,Priceconscious,Sensitivitytogainearlyaccesshigherpriceforaconcernprice/qualityratiobut“yougetwhatalwayslookingfortotechnologiesgoodcauseyoupayfor”bargainsCarCombinesthecarDoesn’tusecarUsescarasprimaryCombinesthecarUsescarasprimaryMinimizescarusageUsagewithothermeansofwheneverpossibletransportationwithothermeansofmodeofpreferringcheapertransporttransporttransportationalternativeseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey442EVprospectsTechEnthusiasts,Dreamers,LuxuriousandPragmaticconsistentlyshowthehighestintentiontobuyinthenearfutureFocusonkeypersonas–EVpurchaseintention#7,930respondentsAPACEMEANATechEnthusiastDreamersLuxuriousPragmaticConventionalistFrugalClustersize39%24%22%19%15%18%6%7%6%22%29%27%9%19%18%5%6%10%Keytargets–focusinnextslides87%80%80%74%68%70%67%WeightedAverage60%61%54%66%46%Intention85%62%47%tobuyEV62%46%75%43%46%30%26%25%14%EVPreferenceBEVPHEVPersona’spreferenceeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey452EVprospectsTechEnthusiastsarehigh-incomemiddle-agedpeopleinterestedinthelatesttechfeature,representingagoodtargetforOEMsFocusontargetcustomers–TechEnthusiastsTechenthusiastProfilingEVprospectswithintentiontobuyTech.ent.EVowners#Tech.ent.,averagevalue#EVowners,averagevalueIntentiontobuy51%Whatisyourage?Whatisyourannualgrossincome?EVwwithin2yrs.414291k92k30%30%Intentiontobuy67%20%20%onlineEnvironmentand10%10%Environmentalclimatechangeare3.6Consciencetoppriorities0018-2425-3435-4445-5455-6465-7475-84<10k€10-3030-5050-7575-100100-15150-30>300k€k€k€k€k€0k€0k€TechnologyDigitalnative,feelsConfidencecomfortablewith4.5Whatisyourfamilysize?Howmanykmdoyoucommutedaily?technology80%3.33.440%2328PriceIswillingtopaySensitivityhigherpricefora1.360%30%goodcause40%20%CarDoesn’tusecar20%10%Usagewheneverpossible4.2001person2people3-5people>5people<5Km6-15Km16-3031-5051-7576-100>100KmKmTotalpopulationscoreTechEnthusiastscoreKmKmKmKmeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey462EVprospectsDreamers’intentiontobuyremainshighbutlowerthanTechEnthusiasts,mainlygiventheirpreferencetowardsalowcarusageFocusontargetcustomers–DreamersDreamerProfilingEVprospectswithintentiontobuyDreamersEVowners#Dreamers,averagevalue#EVowners,averagevalueIntentiontobuy31%Whatisyourage?Whatisyourannualgrossincome?EVwwithin2yrs.424767k91k30%30%Intentiontobuy45%20%20%onlineEnvironmentand10%10%Environmentalclimatechangeare4.3Consciencetoppriorities0018-2425-3435-4445-5455-6465-7475-84<10k€10-330-550-775-10100-1150-3>300k€Digitalnative,feels0k€0k€5k€0k€50k€00k€Technologycomfortablewith3.4Whatisyourfamilysize?Howmanykmdoyoucommutedaily?Confidencetechnology80%3.23.340%2325PriceIswillingtopaySensitivityhigherpricefora2.060%30%goodcause40%20%CarDoesn’tusecar20%10%Usagewheneverpossible2.3001person2people3-5people>5people<5Km6-15Km16-3031-5051-7576-100>100KmKmTotalpopulationscoreTechEnthusiastscoreKmKmKmKmeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey472EVprospectsLuxuriousarenonprice-sensitivepeople,oftenusingacarandthereforerepresentakeytargetforpremiumOEMsFocusontargetcustomers–LuxuriousLuxuriousProfilingEVprospectswithintentiontobuyLuxuriousEVowners#Luxurious,averagevalue#EVowners,averagevalueIntentiontobuy31%Whatisyourage?Whatisyourannualgrossincome?EVwwithin2yrs.424366k91k30%30%Intentiontobuy45%20%20%online10%10%EnvironmentalEthnevliorownemsetpnrtioisriatimesong2.90010-330-550-775-10100-1150-3>300k€Conscience18-2425-3435-4445-5455-6465-7475-84<10k€0k€0k€5k€0k€50k€00k€BuysmainstreamTechnologytechnologybutuses2.8Whatisyourfamilysize?Howmanykmdoyoucommutedaily?Confidencebasicfunctionalities80%3.23.340%2326PricePcorincceeirsnnota0.2Sensitivity60%30%40%20%CarUsescarasprimary20%10%Usagetransportationmeans4.5001person2people3-5people>5people<5Km6-15Km16-3031-5051-7576-100>100KmKmTotalpopulationscoreTechEnthusiastscoreKmKmKmKmeReadinessReport2023482EVprospectsPragmatictendtobemorerationalthanemotionalwiththeirpurchases,makingthemarelevanttargetformass-marketOEMsFocusontargetcustomers–PragmaticPragmaticProfilingEVprospectswithintentiontobuyPragmaticEVowners#Pragmatic,averagevalue#EVowners,averagevalueIntentiontobuy21%Whatisyourage?Whatisyourannualgrossincome?EVwwithin2yrs.424457k91k30%30%Intentiontobuy43%20%20%onlineCaringabout10%10%Environmentalenvironment,butnot3.0Conscienceatoppriority0018-2425-3435-4445-5455-6465-7475-84<10k€10-330-550-775-10100-1150-3>300k€Digitalnative,feels0k€0k€5k€0k€50k€00k€Technologycomfortablewith3.1Whatisyourfamilysize?Howmanykmdoyoucommutedaily?Confidencetechnology80%3.03.340%2323PricePprriiocreityisdefinitelytop3.260%30%Sensitivity40%20%CarCombinesthecar20%10%Usagewithothermeansof3.1transport001person2people3-5people>5people<5Km6-15Km16-3031-5051-7576-100>100KmKmTotalpopulationscoreTechEnthusiastscoreKmKmKmKmeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey492EVprospectsLowoperatingcosts,convenienceandreducedenvironmentalimpactarekeydriverswhenconsideringthepurchaseofanEVKeypurchasingdriversWhataremainreasonsthatdriveyoutobuyanEV?AverageAPACEMEANorthAmerica#7,930respondents–MultiplechoiceTop3driversCostConvenienceEnvironment72%63%64%41%42%44%35%36%37%32%27%30%36%31%27%25%29%30%26%21%24%24%24%17%13%13%2%6%4%9%4%4%4%2%4%2%Fueleconomy/PossibilityReducedDrivingOverallDrivingrangePossibilitytoCityaccessStateincentivesIt’sastatusPeerpressureRegulationcostpermiletorechargeenvironmentalexperiencemaintenancerechargeatmysymbol(e.g.,ICEbans)athomeimpactcostworkplaceeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey502EVprospectsEVprospectsdeclaredasignificantinterestinC-segment/CompactvehiclesandSUVs,withaconsistentdistributionacrossallregionsPurchasingpreferencesWhattypeofcarwouldyoubuy?APACEMEANorthAmericaWhattypeofbodytype?APACEMEANorthAmerica#7,930respondents#7,930respondents–Multiplechoice51%52%51%52%48%44%41%37%30%23%24%19%18%19%20%19%19%13%9%14%13%14%13%5%6%2%2%2%3%3%5%12%11%10%7%7%7%7%7%5%5%4%ASegmentBSegmentCSegmentDSegmentESegmentFSegmentSUVSedanHatch-SportsMPVPick-upMinicarOff-roadMinicompactSubcompactCompactMid-sizeLargeLuxurybackcarNote:percentagesmaynottotal100%duetoroundingeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey512EVprospects50-60%ofEVprospectstendtoexpecttheirnewEVtohaveapricepointbetween20-40k€PurchasingpreferencesHowmuchareyouexpectingtopayyournextEV?#7,930respondentsEMEAAPACNorthAmericaCumulativepercentage(0-40k€)4%3%23%23%1%EMEA66%19%16%20%18%NA59%APAC48%13%13%14%12%13%11%11%11%8%8%8%5%4%7%5%5%3%4%3%2%2%3%4%4%0-10k€11-20k€21-30k€31-40k€41-50k€51-60k€61-70k€71-80k€81-90k€91k-100k€101k+€Note:percentagesmaynottotal100%duetoroundingeReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey522EVprospectsWhenchoosingamongdifferentEVmodels,overallprice,safetyandbatteryrangearethekeycriteriaPurchasingcriteriaWhicharethemostimportantcriteriawhenselectingyournewelectriccar?APACEMEANorthAmerica#7,930respondents–Multiplechoice78%65%55%37%35%34%33%74%59%49%34%34%31%67%57%33%28%26%29%27%71%61%34%32%22%41%35%20%31%28%30%PriceSafetyBatteryrangeBrandInfotainmentDesignDrivingexperienceAfter-salessupport/connectivityeReadinessReport2023Note:percentagesmaynottotal100%duetorounding53Source:Strategy&analysisonfeedbackfromconsumersurvey2EVprospectsChargingduration,rangeandbatterylifetimearethekeybarriersstoppingEVprospectsfrompurchasinganEVKeypurchasingbarriersWhatarethekeyfactorsthatdiscouragedyoufrombuyinganelectricvehicleupuntilnow?#7,930respondents–MultiplechoiceAPACEMEANorthAmerica54%50%52%49%43%45%45%39%39%39%35%35%33%31%28%22%15%14%12%18%12%12%13%9%9%6%7%8%7%7%8%6%7%6%4%5%3%4%3%ChargingLimitedUncertaintyUpfrontUncertaintyLackofNotowningUncertaintySafetyLowerLackoftrustEnvironmentalLackofExistingUnwillingnessdurationrangeaboutbatterycosthigheraboutparkingagarageaboutcostsconcernscustomervehicletochangeresidualspotswithperformanceonnewimpactofboughtlifestylelifetimethanICEvaluechargingchoicerecentlysolutionsincoldtechnologiesexhaustedweatherbatterieseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey542EVprospects60%ofEVprospectswouldconsideritacceptabletohavea300-400kmdrivingrangeandfullchargetheircarinlessthan30minsChargingtimeanddrivingrangeexpectationsHowlongwouldyouconsideracceptabletochargeyourcar?Whatwouldyouconsideranacceptabledrivingrange?#7,930respondents%ofCumulated%of#7,930respondents%ofCumulated%ofTotalTotalTotalTotal18%22%25%26%81%23%13%14%12%8%11%3%7%7%7%2%1%>600km<200km3%55<5min5-10min10-1515-2020-3030-4545-601-33-6hours>6hours500-600km400-500km300-400km200-300kmminminminminminhourseReadinessReport2023Note:percentagesmaynottotal100%duetoroundingSource:Strategy&analysisonfeedbackfromconsumersurvey2EVprospectsOEMcarappsareseenasausefultooltomanagethecarlifecycle,scheduleaserviceappointmentandmanageanEVremotelyDigitalappWhicharethetop5servicesdoyouuse/wouldyouliketohaveinyourcarapp?Otherservicesofinterest#7,930respondents–MultiplechoiceAverageAPACEMEANorthAmericaRemotestart(e.g.warm-up/Pre-conditioning)Locateadealer/authorized68%service67%68%36%41%35%33%Viewbatterystateofhealthand30%35%currentlevelofcharging32%28%27%35%26%25%Remotesupport(e.g.,livechat34%withagent)30%28%ScheduleandmonitorTrackyourvehicle’sLock/unlockyourVehicle’sfeaturesSelectandpurchaseRemoteparkassistserviceappointmentslocation(incl.geofencing)vehicleremotelyguide/demonstrationenhancedfeatureseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey5602.ConsumerviewpointsEVScepticsConsumerswhohavedeclaredtheirintentionnottobuyanElectricVehicle(BEVorPHEV)inthenext5yearseReadinessReport2023573EVscepticsScepticsdisplayregionalvarianceintermsofdemographicsandmobility,indicatingdifferentmobilityneedsEVsceptics–Regionaldifferences#4,108respondentsWhatisyourannualAPACEMEANorthAmericaGlobalgrossincome?54455349Thousand€Whatisyourage?Years48%44%36%44%81%82%Whatisyourgender?%male66%60%Wheredoyoulive?%incity94%76%58centerPDoyouhaveaprivate64%57%parkingspotathome?%yeseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey3EVscepticsScepticsshowsubstantialdifferencesacrossthegloberequiringalocalizedapproachtoconvertthemintoprospectsEVsceptics–Regionaldifferences#4,108respondentsDoyoucommutewithAPACEMEANorthAmericaGlobalacar?54%67%46%60%%yesDoyoucombinethe33%33%31%carwithothermeans?%yes13%HowmanydaysperDaysper3.43.33.2weekdoyouweek2.2commute?HowmanykmdoyouKmcommutedaily?Whatisyourtypical9.410.010.09.8cartenure?YearseReadinessReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey593EVscepticsKeyinhibitorsvaryacrossgeographies,withEMEAandNorthAmericabeingputoffbythelimiteddrivingrangewhileAPACfromthechargingtimeMainreasonsforrejectionWhatarethemainreasonsthatdiscourageyoufrombuyinganEV?#4,108respondents–MultiplechoiceAPACEMEANorthAmerica48%47%45%44%43%40%39%39%30%31%30%25%25%23%16%17%15%15%14%6%8%13%12%12%12%11%11%10%10%10%8%7%9%9%9%9%8%8%3%7%8%6%7%6%7%4%5%4%4%2%2%LongUncertaintyLimitedUpfrontLackofUncertaintyExistingLowerUncertaintySafetyLackoftrustEnvironmentalNotowningLowresidualLackofUnwillingnessLongLackofchargingaboutbatteryrangecosthigherpublicaboutcostsvehicleperformanceaboutconcernconsumerthanICEchargingboughtresidualinnewimpactof/rentingavalueshared/tochangedeliverytimetimelifetimesolutionsrecentlyincoldvaluechoiceweathertechnologiesexhaustedgarageprivatelifestyle60batteriesparkingspotswithchargingsolutionseReadinessReport2023Note:percentagesmaynottotal100%duetoroundingSource:Strategy&analysisonfeedbackfromconsumersurvey03.eReadinessIndexeReadinessReport202361TheeReadinessIndexiscomprisedof14KPIsgroupedinto4maindimensionsforeachcountryinscopeeReadinessIndexDimensionsandKPIsGovernmentincentivesInfrastructureSupplyDemandAnalysisofspecificgovernment•Installedpubliccharging•EVshareoftotalregistrations•Consumers’willingnesstobuyincentiveswithfocuson:pointsperthousandcars•DepreciationrateofaanEVwithinthenexttwo(totalcirculatingEVandyears•Grants(Purchasesubsidies,non-EVfleets)country'stopsellingEVsnationalandlocalgrants,•NumberofpureEVplayers•Shareofshortdistancescrappingbonus)•Installedpublicfastcharging(<30kmperday)driverspoints(>150kW)perhighwaypresentinthemarket•VATexemptionkm•Averagehouseholdincome•Registrationtaxreduction•Shareofrenewableenergygeneration•Annualownershiptaxexemption•RatioofgasolinetoelectricitydrivingcostSeRtraetaedginy&essReport202362HongKongandNorwayarethemosteReadycountriesacrossalldimensionswhileAustraliaseemtheleastmatureonefore-mobilityeReadinessIndex4.13.2Note:percentagesmaynottotal100%duetoroundingSeRtraetaedginy&essReport2023Source:Strategy&analysisonfeedbackfromconsumersurvey63InEurope,NorwayisthemosteReadycountryacrossalldimensionswhileItaly,SpainandPolandseemtheleastmaturefore-mobilityeReadinessIndex–FocusonEuropeVs.2022Legend:NorwaySwitzerlandGermanyUKFranceItalySpainPoland1–loweReadiness5–higheReadinessGovernment2.02.52.52.01.82.73.01.8incentiveInfrastructure5.04.13.52.83.81.41.32.0Supply4.53.02.82.52.52.02.52.5Demand4.34.03.73.02.33.32.02.3eReadinessindex4.03.43.12.62.62.32.22.1SeRtraetaedginy&essReport2023Source:Strategy&Analysis64HongKong,ChinaandSingaporeimmediatelyrankamongthemosteReadycountriesacrossallcountriesconsideredeReadinessIndex-RestoftheWorldLegend:HongKongChinaSingaporeIndiaCanadaUSAUAEJapanAustralia1–loweReadiness2.02.32.02.01.51.81.02.01.35–higheReadinessGovernmentincentiveInfrastructure4.64.63.41.51.91.41.71.61.1Supply4.82.52.82.03.02.32.52.32.5Demand5.05.04.74.73.34.34.02.73.0eReadinessindex4.13.63.22.52.42.42.32.12.0SeRtraetaedginy&essReport2023Source:Strategy&Analysis65GovernmentincentivesGovernmentincentivesaremeasuredbasedonconsumerfiscalsavingsDimensionoverviewKPIDefinitionScoringGrantsTotalamountofmaximumpurchasesubsidies,nationalandlocalgrants,scrappingbonusLow(1):0–2,000€/BEVperEVgrantedtoaconsumerbythegovernmentHigh(5):>8,000€/BEVVATExemptionormaximumreductiononVATgrantedtoaconsumerwhenbuyinganEVLow(1):0–20%reductionexemptionHigh(5):>80%reductionRegistrationExemptionormaximumreductiononone-offregistrationtaxes,importtaxesorCO2/NOxLow(1):0–2,000€/BEVtaxreductiontaxesHigh(5):>8,000€/BEVAnnualownershipTotalmaximumamountofannualownershiptaxreductionsgrantedtoaconsumerbytheLow(1):0–20%reductiontaxexemptiongovernmentHigh(5):>80%reductionSeRtraetaedginy&essReport2023Source:Strategy&Analysis66GovernmentincentivesSpainandItalyprovidethehighestgovernmentincentivestoconsumers,whileFranceandpolandthelowestVs.2022Low(1)High(5)Score&KPIpercountry–FocusonEuropeKPIWeightSpainItalySwitzerlandGermanyNorwayUKFrancePoland10.07.51.85.05.9Grants125%2.04.51.1(k€)VATexemption(%)25%0%0%0%0%100%0%0%0%Registrationtax25%2.30.06.20.00.00.03.12.8reduction225%(k€)75%100%50%100%0%100%0%0%1.8Annualownership3.02.72.52.52.02.01.8taxexemption(%)671)Max.grantamountconsidered,figuresdonotincludelocalgrants2)Includesonlyemission-relatedone-off-taxesforcarsabove160gCO2/km(e.g.Totalweighttaxexcluded);Source:EuropeanAlternativeFuelsObservatory;Governmentwebsites;AceaSeRtraetaedginy&essReport2023GovernmentincentivesChinaandHongKongofferthehighestgovernmentincentivestoconsumers,whileIndiaandUAEofferthelowestLow(1)High(5)Score&KPIpercountry–RestoftheWorldKPIWeightHongkongSingaporeJapanIndiaUSACanadaAustraliaUAE1.76.9Grants1China(k€)25%0.00.00.016.34.82.20.0VATexemption(%)25%0%0%0%0%82%0%0%0%0%Registrationtax25%3.030.013.60.00.00.00.01.50.0reduction2(k€)25%100%0%0%0%0%0%0%0%0%1.0Annualownership2.32.02.02.02.01.81.51.3taxexemption(%)681)Max.grantamountconsidered,figuresdonotincludelocalgrants2)Includesonlyemission-relatedone-off-taxesforcarsabove160gCO2/km(e.g.Totalweighttaxexcluded);Source:EuropeanAlternativeFuelsObservatory;Governmentwebsites;AceaSeRtraetaedginy&essReport2023InfrastructureTheInfrastructuredimensionmeasurestheavailabilityofpubliccharginginfrastructureaswellasthesourcesandcostofelectricityDimensionoverviewKPIDefinitionScoringChargingpointsNumberofpublicchargingpointsperthousandcars(totalcirculatingEVandnon-EVfleet)Low(1):<=1perthousandcarsHigh(5):>=3PenetrationofRatioofpublicfastchargingpoints(over150kW)perkmofmotorwayLow(1):<=0,1publicfastHigh(5):>=1chargingpointsRenewableenergyShareofrenewableenergyproduced1Low(1):<=40%shareHigh(5):>=80%Gasolinevs.Ratioofdrivingcosts2per100kmofICEvs.BEV(consideringgasolineforICEandslowLow(1):<=2,5electricitycostchargingforEVs)High(5):>=3,5SeRtraetaedginy&essReport20231)AccordingtoIEA,thefollowingtypesareincludedwithintherenewableenergycategory:SolarPV,windenergy,hydroenergyandbioenergy2)Assumingconsumptionof15kWhor8litreofgasolineper100km69InfrastructureNorwayisbyfarthemostdevelopedEVcharginginfrastructure,butSwitzerland,FranceandGermanyarecatchingupLow(1)High(5)Score&KPIpercountry–FocusonEuropeKPIWeightNorwaySwitzerlandFranceGermanyUKPolandItalySpain0.10.90.7Chargingpoints50%7.62.42.41.71.4perthousandcars(#/kcars)Penetrationofpublic30%10.21.01.01.01.80.50.10.0fastchargingpoints(#/km)Renewableenergy10%98%28%25%48%44%17%37%42%share1(%)10%5.44.14.82.91.85.22.72.9Gasolinevs.electricitycost25.04.13.83.52.81.41.3(ratio)2.070Total1)AccordingtoIEAclassification–Renewablesources:SolarPV,windenergy,hydroenergyandbioenergy2)SeRtraetaedginy&essReport2023Assumingconsumptionof15kWhor8litreofgasolineper100km;Source:IEA,AlternativefuelsobservatoryInfrastructureChinaandHongKongandSingaporehavethehighestpenetrationofchargingpointsforelectricvehicleswhileIndia,USAandAustraliafallbehindLow(1)High(5)Score&KPIpercountry–RestoftheWorldKPIWeightHongKongChinaSingaporeCanadaUAEJapanIndiaUSAAustralia0.20.50.00.40.2Chargingpoints50%8.95.65.40.9perthousandcars(#/kcars)Penetrationofpublicfastchargingpoints30%1.74.30.00.10.20.50.00.10.0(#/km)Renewableenergy10%1%32%4%66%1%20%41%24%29%share1(%)Gasolinevs.10%8.97.64.45.44.92.58.52.82.6electricitycost21.5(ratio)4.64.63.4Total1.91.71.61.41.1SeRtraetaedginy&essReport20231)AccordingtoIEAclassification–Renewablesources:SolarPV,windenergy,hydroenergyandbioenergy2)71Assumingconsumptionof15kWhor8litreofgasolineper100km;Source:IEA,AlternativefuelsobservatorySupplyTheSupplydimensionmeasuresthesupplyofEVsandtheirmarketpenetrationDimensionoverviewKPIDefinitionScoringBEVpenetrationShareofBEVsbasedontotalcarssold(2022)Low(1):<=10%High(5):>=50%TopmodelsannualDepreciationrate1oftop4sellingmodelsbycountryfrom2018to20222Low(1):<=-15%depreciationHigh(5):>=-5%PureEVplayersPureEVplayers3withactivesalesincountryLow(1):<=1,00High(5):>=5,00SeRtraetaedginy&essReport20231)Withinthepast5yearsbasedonreferenceprices(nottransactionprices)2)ReferencepricesforRenaultZoe,NissanLeaf,TeslaModelS,BMWi3onselectedplatformswithsearchtermsof1styearofregistration2018-2021andmileage(0,10k,20k,30kandabove40kkm)3)SelectionofAiways,BYD,e.GO,Fisker,Genesis,Geometry,Hiphi,Hongqi,Leapmotor,Lucid,Lynk&Co,NIO,ORA,Polestar,Rivian,Tesla,VinFast,WEY,Xpeng,Zedriv72SupplyNorwayisthebestsuppliedmarketwhilePolandandItalyseemstohavethelowestBEVpenetrationLow(1)High(5)Score&KPIpercountry–FocusonEuropeKPIWeightNorwaySwitzerlandGermanySpainFranceUKPolandItaly13%17%3%4%BEVpenetration50%79%18%18%4%(%)Topmodelsannual25%-11%-10%-13%-12%-18%-16%-10%-15%depreciation(%)PureEVplayers(#)25%14101611168613Total4.53.02.8SeRtraetaedginy&essReport20232.52.52.52.52.0Source:IHSMarkit;Strategy&Analysis73SupplyHongKongleadtheEVdemanddimensionbyfarthankstoastrongBEVpenetrationandresidualvaluestabilityLow(1)High(5)Score&KPIpercountry–RestoftheWorldKPIWeightBEVpenetrationHongKongCanadaSingaporeAustraliaChinaUAEUSAJapanIndia(%)50%53%7%12%3%21%3%5%1%1%Topmodelsannual25%-5%-4%-11%-9%-16%-11%-12%-12%-7%depreciation(%)PureEVplayers(#)25%4749159752Total4.83.02.8SeRtraetaedginy&essReport20232.52.52.52.32.32.0Source:IHSMarkit;Strategy&Analysis74DemandTheDemanddimensionleveragestheStrategy&eReadinesssurvey,drawingonfirsthanddataDimensionoverviewKPIDefinitionScoringWillingnesstobuyConsumerwillingnesstobuyaBEVinthenexttwoyearsyear(%ofrespondents)Low(1):<=20%High(5):>=35%ShareofshortShareofrespondentsdriving30kmorlessperdayLow(1):<=50%distancedriversHigh(5):>=75%HouseholdincomeAverageincomeofconsumersrespondenttotheStrategy&surveyLow(1):<=40€kHigh(5):>=60€kSeRtraetaedginy&essReport2023Sources:Strategy&Analysis75DemandNorwayleadtheEVdemanddimensionthankstoastrongwillingnesstobuyandhighhouseholdincomeLow(1)High(5)Score&KPIpercountry–FocusonEuropeKPIWeightNorwaySwitzerlandGermanyItalyUKFrancePolandSpain19%18%14%30%Willingnesstobuy33%32%21%23%29%(%)Shareofshort33%74%75%75%78%88%75%89%50%distancedrivers(%)Householdincome33%8690574147423841(k€)4.34.03.73.33.0Total2.32.32.0SeRtraetaedginy&essReport202376DemandEmergingmarketsarecharacterizedbyahighwillingnesstopurchaseelectriccars,aswellasshorttraveldistances.Low(1)High(5)Score&KPIpercountry–RestoftheWorldKPIWeightHongKongChinaSingaporeIndiaUSAUAECanadaAustraliaJapan26%46%Willingnesstobuy33%48%50%31%64%21%17%10%(%)Shareofshort33%84%88%81%73%87%56%74%70%92%distancedrivers(%)Householdincome33%113721011008190605843(k€)554.74.74.343.33Total2.7SeRtraetaedginy&essReport2023Sources:Strategy&eReadinessConsumersSurvey7704.RecommendationsonthewayforwardeReadinessReport202378Wehaveshortlisted5short-termactionableimprovementsfore-mobilityplayerstountapthefullpotentialoftheEVmarketRecommendationsfore-mobilityplayers(1/2)UtilitycompaniesRecommendedactionsRationaleOEMsRetailers&CPOPublicAuthoritiesDesignfinanciallyflexibleofferingsthatreduce●Upfrontcostsandlowresidualvaluearekeypurchasingupfrontcosts,provideadditionalservices,andprotectbarriersfor40%and33%ofEVprospectsrespectivelyresidualvaluetoincreaseEVconversionfrommorehesitantprospects●MajorityofEVowners,inparticularinAPACandNA,purchasedinsuranceservices,anaftersalesmaintenanceplanandextenderwarrantytogetherwiththecartoensuretheirpeace-of-mindBuildpartnershipswiththird-partyproviders(including●Limitedcharginginfrastructureknowledge(42%)anddelaysclearSLAsandincentives)toprovideend-to-endinprocess(25%)arethekeyissuesexperiencedduringthesupportandorchestrationofhomechargepointhomecharginginstallationinstallationandofferrelatedproducts&services(e.g.greenenergycontracts,energy●10-40%ofconsumerspurchasedadditionalEV-relatedstorage,photovoltaicpanels,integratedon-the-goproductsandserviceswithinashorttimeframeafterchargingetc.)toEVcustomersatpointofsalepurchasingtheirEV.Reviewandrefreshtheused-vehiclebusiness●60%ofEVOwnerswouldbewillingtoconsiderapre-ownedpropositionwithpre-ownedprogramsthatleverageEV,thisisdrivenmainlybythelowerupfrontcosts.telematicdataandincludebatteryhealthcertificationtoprotectresidualvaluesandmoreeffectivelyand●Thelackofabatterystate-of-healthcertification/warrantyprofitablymanageEVsecond-handtrade.andthefearofreducedbatterycapacityareamongthetopbarriersfor45-60%ofcustomers.eReadinessReport2023Source:Strategy&79Wehaveshortlisted5short-termactionableimprovementsfore-mobilityplayerstountapthefullpotentialoftheEVmarketRecommendationsfore-mobilityplayers(2/2)UtilitycompaniesRecommendedactionsRationaleOEMsRetailers&CPOPublicAuthoritiesRedesignend-to-endcustomerexperienceto●EVowners’satisfactioncontinuestobelowerthanforICEaddressprospectivecustomers’EVqualms(e.g.longowners(11p.p.)–astheEVmarketisshiftingintoamassormulti-daytestdrivesincludingpublicchargingmarket,newEVownersarelesstech-savvyandexpectexperience)andeffectivelyonboardthemtoEVsupportthroughouttheentirecustomerjourneyfeatures,educatethemaboutoptions&settings,andprovideEVdrivingguidance●Limitedcharginginfrastructureknowledge(42%)anddelaysinprocess(25%)arethekeyissuesexperiencedduringthehomecharginginstallationReviewprocessestograntaccesstorelevant●Only6outofthe18countriesanalyzedisaboveaverageinpublicspacessuitableforpublicEVchargingtermsofpublicchargingnetworkdevelopmentwithmorelocationsandspeed-uppermittingapprovaltothan2.3pointsfor1,000circulatingcarsacceleratefornewhigh-powerconnectionstoprioritizecharginginfrastructurebuildup●LocalandnationalgovernmentsortheiragencieshaveaccesstorealestatewithpotentialtobeutilizedforpublicEVchargingeReadinessReport2023Source:Strategy&80ContactsFranceIndiaNorway/NordicsUnitedArabEmiratesJoséBaghdadKavanMukhtyarMilosBartosekHazemGalalAustraliaPartner-PwCFrancePartner–PwCDirector-Strategy&Partner–PwCJonChadwick+33156578403+919987538628+4795260758+971503878518Partner-PwCjose.baghdad@pwc.comkavan.mukhtyar@pwc.combartosek.milos@pwc.comhazem.galal@pwc.com+61424299056jon.d.chadwick@pwc.comGermanyAkhileshOberoiPolandHeikoSeitzAndreasGisslerManager–PwCPiotrMichalczykDirector–PwCCanadaPartner-Strategy&+919740446188Partner–PwC+971509612247ChrisCasey+4915123773506akhilesh.oberoi@pwc.com+48502184294heiko.seitz@pwc.comPartner–Strategy&andreas.gissler@strategyand.de.pwc.compiotr.michalczyk@pwc.com+1(416)320-8175chris.casey@pwc.comPatrickLillItalyMateuszBudnerUnitedKingdomDirector–Strategy&FrancescoPapiManager–PwCAksharaChandhokJordanDowning+491707377962Partner-Strategy&+48519507229Director-Strategy&SeniorManager-Strategy&patrick.lill@pwc.com+393346209639mateusz.budner@pwc.com+447900163433+1(647)500-2172francesco.papi@strategyand.it.pwc.comakshara@pwc.comjordan.d.downing@pwc.comHongKong,SingaporeandThailandOliverWilkinsonIacopoNeriSpainUnitedStatesChinaPartner–Strategy&Director-Strategy&ManuelDiazDelgadoAkshaySinghJunJin+6597329610+393334538784Partner-PwCPartner–PwCPartner–PwColiver.wilkinson@pwc.comiacopo.neri@strategyand.it.pwc.com+34649614535+1440-382-8477+861065332977manuel.diaz.delgado@pwc.comakshay.singh@pwc.comJun.jin@cn.pwc.comJulianCheongDirector–Strategy&JapanSwitzerlandBrianDeckerAshleyLZhang+6583683198KentaroAbeThiloBuehnenPartner–PwCSeniorManager–PwCjulian.w.cheong@pwc.comDirector-Strategy&Director–Strategy&+1313-510-7534+861065337670+8170-1399-5253+41797759222brian.d.decker@pwc.comAshley.l.zhang@cn.pwc.comkentaro.abe@pwc.comthilo.buehnen@strategyand.ch.pwc.comSeRtraetaedginy&essReport202381DisclaimerImportantmessagetoanyThisreporthasbeenpreparedbyPwCStrategy&independentlyfromanyPwCStrategy&clientrelationshipfortheuserofthisReportpurposeofprovidingourperspectivesontheshort-termdevelopmentofthee-mobilitybusinessWhileeveryefforthasbeenmadetoensurethequalityofinforma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