Continuous decrease in the price of EV batteries will lead to increased demand for EVs as a cost-effective medium for transportation

Electric Vehicles (EVs) Procurement Intelligence

The electric vehicles (EVs) market is anticipated to witness growth at a CAGR of 14.5% from 2023 to 2030. In 2022, Asia Pacific accounted for 51% of the market share followed by North America and Europe. Asia Pacific is the most lucrative region in terms of revenue as there’s an upsurge in the adoption of EVs particularly in China, India, and Japan. In addition, due to the easier availability of battery raw materials and lower production costs, several key players are eyeing China to set up their manufacturing facilities.

Leading markets such as China, the US, and Germany are spending heavily on EVs, charging infrastructure, and research & development for effective charging technologies, longer-range EVs, and more affordable batteries. In addition, stricter government rules across the globe are one of the key factors driving up demand for EVs. For instance, the European Union has set a goal of achieving net-zero emissions by 2050. The electric vehicles category is witnessing increased adoption of V2G (vehicle-to-grid) technology which enables drivers to get the most out of their charging, while also optimizing the grid network for a much larger number of vehicles, or a home network that allows homeowners to go off the grid.

The COVID-19 pandemic significantly affected the market in 2020 and 2021. The number of on-road vehicles abruptly decreased. However, after June 2020, when the lockdowns were lifted in most nations, sales of all sorts of EVs increased. BEV and HEV sales in particular dominated the industry. As OEMs prepare to introduce new EV models in the upcoming years, the period between 2023 and 2025 is anticipated to be a prosperous period for EV sales. Growth of the category is anticipated to remain brisk due to the government's strong support for vehicle electrification and the drop in battery prices

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Electric Vehicles Sourcing Intelligence Highlights

• The global electric vehicles category is moderately fragmented, with top players in the market based in parts of Europe, Asia, and North America.

• China is the largest manufacturer of EVs and exporter of EV batteries across the world, particularly in Europe.

• Despite being a competitive industry, the bargaining power of buyers is low as electric vehicles encompass a higher cost of production, and due to costlier batteries and other technical aspects, the scope of negotiation is almost negative.

• Vehicle cost, financing, insurance, purchase taxes, annual registration fee, maintenance costs, and other additional expenses are the major cost components of this category. Other expenses can be further bifurcated into home charger cost, electricity purchase, liquid fuel purchase, electricity taxes, and liquid fuel taxes.

Electric Vehicles Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Category estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Category report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

Grand View Research has identified the following key cost components for the Electric Vehicles Category:

• Vehicle Cost

• Financing

• Insurance

• Purchase Taxes

• Annual Registration Fee

• Maintenance

• Others

  • Home Charger Cost

  • Electricity Purchase

  • Liquid Fuel Purchase

  • Electricity Taxes

  • Liquid Fuel Taxes

Vehicle cost forms the largest key cost component of the Electric Vehicles category.

List of Key Suppliers in the Electric Vehicles Category 

• BMW AG

• Tesla, Inc.

• Volkswagen AG

• General Motors Company

• BYD Company Limited

• Mercedes-Benz Group AG

• Nissan Motor Co., Ltd.

• Toyota Motor Corporation

• SAIC Motor Corporation Limited

• Stellantis N.V.

• Ford Motor Company

• Hyundai Motor Company

• Renault SAS

• XPeng Inc.