Why consumer confidence is critical to a country’s EV transition

Advanced Manufacturing and Mobility Business Minute

In this episode of the Advanced Manufacturing and Mobility Business Minute podcast, EY analysts Anuj Chandna and Angsuman Sharma share insights from the latest EY Electric Vehicle Country Readiness Index.

The EY Electric Vehicle Country Readiness Index (EVCRI) examines global auto markets and their preparedness for an electric vehicle (EV) future. The most recent index evaluated 20 crucial EV markets, representing over 93% of worldwide EV volumes, to gauge their maturity.

The index evaluates three fundamental areas — supply, demand and regulatory — to determine what works in driving the overall EV ecosystem and the best practices for each country.

China continues its dominance of the EV market, remaining the undisputed leader in electrification of its vehicle market. Norway retains the second position in electrification, with the US, Sweden and the UK completing the rest of the leadership positions.

Rising fuel costs, increasing availability of EV models and swelling penalties on internal combustion engine (ICE) vehicles encourage consumer adoption of EVs across the globe. However, the lack of charging stations and higher upfront cost of EVs continue to be concerns.

Key takeaways:

• Factors such as fuel costs, availability of EV models and charging stations, penalties on ICE vehicles and cost of vehicles influence consumer decisions.
• Key markets are rapidly developing their own local EV ecosystem and addressing the issues in the battery supply chain.
• Public-private partnership is the way to invite investments in developing charging infrastructure.
• Regulators and policies wield significant influence in fostering EV ecosystems.