is $4,819 more expensive. The study also examined how this balance will change over the next 10 to 20 years, assuming that battery costs will decrease while gasoline prices increase (Lee & Grant, 2011). Life Cycle Electric vehicles had popularity during the early 1900’s. This popularity put electric transportation on par with the combustion engine until the invention of the electric starter. Once the electric starter became common in the 1930’s the electric car was removed from most markets. The resurgence of electric cars has been accelerated and welcomed due to the high cost of petroleum. This, in combination with the last decade’s progress in lithium based batteries, has reintroduced the EV into the introduction stage of the product’s life cycle. It is widely estimated that in the next 5-10 years the EV will enter the growth stage if improvements continue at their present rates (Alger , 2011). Key Success Factors The rise and or fall of electric car market will most likely coincide with the development of their battery technology. According to Craig Shields, “I predict 10% penetration by 2020 – a $250 billion market, but batteries are critically important”. Shields continued, “As we achieve scale here, as we experience ongoing technology innovation, establish design standards, and remove cost from the supply chain, we’ll have battery costs at $300/kWh, which will enable EVs to be offered at terrifically attractive prices” (Alger, 2011, para. 6). These are not the only hurdles for EV growth, but if the battery improves as expected EV’s could penetrate the market.
is $4,819 more expensive. The study also examined how this balance will change over the next 10 to 20 years, assuming that battery costs will decrease while gasoline prices increase (Lee & Grant, 2011). Life Cycle Electric vehicles had popularity during the early 1900’s. This popularity put electric transportation on par with the combustion engine until the invention of the electric starter. Once the electric starter became common in the 1930’s the electric car was removed from most markets. The resurgence of electric cars has been accelerated and welcomed due to the high cost of petroleum. This, in combination with the last decade’s progress in lithium based batteries, has reintroduced the EV into the introduction stage of the product’s life cycle. It is widely estimated that in the next 5-10 years the EV will enter the growth stage if improvements continue at their present rates (Alger , 2011). Key Success Factors The rise and or fall of electric car market will most likely coincide with the development of their battery technology. According to Craig Shields, “I predict 10% penetration by 2020 – a $250 billion market, but batteries are critically important”. Shields continued, “As we achieve scale here, as we experience ongoing technology innovation, establish design standards, and remove cost from the supply chain, we’ll have battery costs at $300/kWh, which will enable EVs to be offered at terrifically attractive prices” (Alger, 2011, para. 6). These are not the only hurdles for EV growth, but if the battery improves as expected EV’s could penetrate the market.
123279075-Electric-Car-Industry-Analaysis.docx