Strategy Analytics Press Releases


Strategy Analytics: Dedicated Hybrid and Electric Vehicle Models Being Developed To Take On the Prius and Tesla

by Kevin Mak | Nov 04, 2015

Falling Fuel Prices, Tightening Mandates and Revisions to Driving Test Cycles Increase Pressure on the Automotive Industry

Boston, MA - November 04, 2016 – The launch of the new Toyota Prius, reaching a historic eight million-unit milestone, and the growing success of Tesla Motors have reshaped the powertrain strategies of the major auto makers. 

The recent Volkswagen diesel emission scandal has also raised demands for changes in driving test cycles. Faced with falling fuel prices and tightening mandates, auto makers are thus under increasing pressure to raise consumer desire in electrified vehicles.

The Strategy Analytics report, OEM Hybrid And Electric Vehicle Strategies: Dedicated Models And NCA/NCM Batteries Drive Further Impetus To Electrification, provides the current status on each of the main OEMs.  It also includes a full forecast for HEV and EV output, showing that demand for electrified powertrains will increase to 14.3M units by 2022.

Click here for the report:  http://bit.ly/1GAUU67

 “The high cost of electrification had forced OEMs to develop vehicle platforms from which an electric or hybrid variant can be generated,” said Kevin Mak, Senior Analyst for Powertrain, Body, Chassis & Safety at Strategy Analytics.  “The issue facing this strategy is that less-than-desirable electric and hybrid vehicle models could result.”  A Tesla vice-president called his rivals’ offerings as mere “appliances.” 

 Developments from major OEMs are now underway to bring about dedicated hybrid models, to compete against the market leading Prius.  The model is aimed at consumers who value low running costs from a powertrain that maximizes fuel economy – that can, essentially, recoup its cost premium over conventionally-powered compact models.  This ability to recoup the cost premium becomes more challenging when fuel prices fall, particularly in a major auto market like the US.  Meanwhile, established luxury auto makers and Chinese start-ups will be developing electric sedans and SUVs, to compete against Tesla.  These models are aimed at consumers who value comfort, style and the high performance in luxury vehicles.  Mak added, “As a result of the new powertrain strategies, competition among electrified autos is expected to increase.”

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

European Contact: Kevin Mak, +44 (0)1908 423 644, kmak@strategyanalytics.com

US Contact: Mark Fitzgerald, +1 617 614 0717, mfitzgerald@strategyanalytics.com

China Contact: Kevin Li, +86 186 0110 3697, kli@strategyanalytics.com