Insight to the Electric

Vehicle Industry
BCOM 214 – INDUSTRY RESEARCH REPORT

Authored by: Riley King

Contents
Introduction .................................................................................................................................... 2
Industry Landscape ......................................................................................................................... 2
Overview ................................................................................................................................................... 2
Growth ...................................................................................................................................................... 2
Figure 1.................................................................................................................................................. 3
Market Trends ................................................................................................................................. 3
Buying Habits ............................................................................................................................................ 3
Demographics ....................................................................................................................................... 4
Figure 2.............................................................................................................................................. 5
COVID-19 Impact....................................................................................................................................... 5
Figure 3.................................................................................................................................................. 5
Competitors .................................................................................................................................... 6
Key Companies .......................................................................................................................................... 6
Figure 4.................................................................................................................................................. 6
Internal Competition ................................................................................................................................. 7
External Competition ................................................................................................................................ 7
Conclusion ....................................................................................................................................... 7
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Introduction
This industry report will explore the electric vehicle industry because of its growth and
promising future. This information will be used for clients to make knowledgeable decisions on
investing activities through analyzing this industry. The report will include topics of industry
landscape, market trends, and competitors to provide a solid background about electric
vehicles.

Industry Landscape
Overview
The electric vehicle industry is comprised of many different companies, model options, and
advancements in performance. Some manufacturers are transitioning their current gas models
to electric because of the popularity and trends in the car market. The constant competition
between companies is pedaling new technological discoveries and innovating unique
capabilities of electric cars. This is furthering the performance and potential of electric cars to
give us a less polluted future. However, there are also production issues with computer chips
and the resources to build batteries. Both of which are being addressed with research and
development by these companies to continue the upward trend of growth.

Growth
The electric vehicle industry is a large and constantly advancing industry that has been tested
with obstacles and proven to prosper throughout its many years in the 21st century. This
industry was first developed in the 1830s by an English inventor but will not become practical
until the 1990s with new government regulations (Matulka, 2014). The total industry revenue as
of 2023 is $88.8B with a 24% annual growth in revenue (Bari, 2023). The electric car industry
has been around for many years, but within the last three decades has made great strides in
improving those vehicles. With new regulations on gas-fueled cars with carbon emissions,
electric vehicles are the best option to replace them. Already there is an extremely large market
for electric options in the United States with total revenue nearing $100B and being speculated
to reach that number in the coming future.
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Figure 1
Industry Growth

Figure 1 is visualizing the historical and predicted future industry revenue of electric cars in the
United States. What is important to note is how much growth is predicted in the next upcoming
years (Bari, 2023).

Market Trends
Buying Habits
Consumers are interested in new technologies; electric vehicles are the perfect market for
people that want efficient and new. Though some are unsure about the market but with
information becoming more readily available, that is less of a barrier to consumers. People want
what these car manufacturers are pushing, flashy and reliable electric vehicles (Mintel &
Sanchez, 2022). The price of gas is also rising, looking at June of 2021 the national average was
$3.23 per gallon now looking at June of 2022 the average was $5.03 a gallon (Mintel & Sanchez,
2022). Not only do consumers want to save money, but also the environment. Nearly half the
population of US consumers believe that they can make a positive difference on the
environment. When a consumer can save money, save our environment, and have a new piece
of technology, they will opt for that opportunity. People want a reliable vehicle that has
convenient pieces of technology while also saving money. With gas prices being so high, the
decision to switch or continue to buy electric vehicles is easier than before. Thus, attracting
more consumers.

There are still people that do not understand electric vehicles and are weary of their
capabilities. Electric cars are new territory for a large portion of people, especially since 42% of
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the respondents to a survey thought electric cars needed gasoline to function (Senn-Kalb &
Mehta, 2022). Also, with a 7,000-person survey 65% of them were considering purchasing a
gasoline car (Senn-Kalb & Mehta, 2022). Much of this feedback is due to “range anxiety” which
is from the surveys as well. People did not know enough about the range and performance of
these cars so they will instead continue buying what they know, gasoline-powered vehicles. The
misinformation and anxiety behind this industry will not last long because more truthful
information is being given to consumers each year.
At this moment in our time, there are a lot of moving parts around the advancements of battery
powered cars and their capabilities. There was also many questions and implications when the
United States transitioned from landlines to cellular phones. Although it took almost a decade
to have the majority of the population backing the new phones, it still happened. It will take
time to educate people for them to understand where this industry is headed, according to
teams of professionals (Senn-Kalb & Mehta, 2022).
Demographics
There are generations and ethnicities that are more and less likely to purchase an electric
vehicle, but that field is becoming more level. There are about half the population of the
Millennial generation that are somewhat or very likely to purchase an electric car (Pew Research
Center, 2021). While the generations of Boomers or older are only 32% of somewhat or very
likely to purchase an electric car (Pew Research Center, 2021). Next, the ethnicity that is most
likely to "definitely” or “seriously considering” buy an electric vehicle are Asian Americans at
52%, and the least are White Americans at 33% (Targeted News Service, 2022). The younger
generations are more likely to buy an electric vehicle than older generations. These factors
could be that younger people are more open to technology and relying on these systems rather
than the cars older people have had for decades. The statistics of what generation is more likely
to buy gives these companies an idea of what the future generation of drivers will look like. The
ethnicity gap is another important point because of communities that are a majority Asian
Americans could have a higher buying percentage than a majority White American community.
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Figure 2
Generational Demographics

Figure 2 shows the amount of each generation’s likeliness to purchase an electric vehicle.
Millennials are the most likely to seriously purchase an electric vehicle (Pew Research Center,
2021).

COVID-19 Impact
The impact COVID-19 made around the world was devastating, to families, businesses, and our
way of life. It disturbed supply chains and production facilities of key manufacturers that
provide parts for making electric vehicles. Mainly, semiconductors for computer chips and the
transportation of materials. Also, there was a brief suspension of labor and production which
hurt the overall revenue and sales of electric vehicles (Frost & Sullivan, 2021). The EBITDA to
revenue ratio grew from 2014 to 2019 very strongly, reaching up to a 16.0 ratio until 2020
reported a ratio of 7.1 (Pantalon, 2022). This harsh impact on the industry’s earnings from
COVID-19 put strain on the manufacturers. However, the production of semiconductors is
nearing its normal pace with supply chains being just as efficient as pre-COVID. The electric car
industry is continuing its growth and the future outlooks are optimistic.

Figure 3
COVID-19 Impact with Industry Multiples
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Figure 3 shows the industry multiples of the electric car industry. The EBITDA to revenue ratio
drops drastically in 2020 (Pantalon, 2022).

Competitors
Key Companies
There are many companies involved in the electric car industry now, but only a few have over
5% of the market share. Tesla has the largest share of the electric car industry in the United
States with around 65% (Hart, 2023). Hyundai Motor Group is the next largest competitor at 9%
market share; VW Group, General Motors, and Ford are also part of the list of single companies
with the largest market shares (Hart, 2023). There are also newer companies of all electric cars
such as Rivian that could have a strong future. The outlier of this list of major competitors is
Tesla by a large margin, this is most likely due to Tesla being a car manufacturer focusing on
electric vehicles. They do not offer any gasoline-powered options but offer a wide range of
options for electric cars. This reason along with other variables are giving Tesla the upper hand
in the electric car market. However, with more companies such as Hyundai Motor Group and
Ford transitioning to electric powertrains, their already strong customer-base will be able to
support the movement.
Figure 4
Electric Vehicle Market Share
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Figure 4 visualizes the findings of the recent market share of companies in the electric car
industry. Tesla has the largest market share in the United States with almost two-thirds of the
industry (Hart, 2023).

Internal Competition
There are different car companies that reside under the same parent company, yet they are still
competing for customers. For example, Hyundai Motor Group owns three different companies:
Genesis, Hyundai, and Kia which all have their own electric-powered option. General Motors,
VW Group, and Ford also have the same situation of owning other car companies. These parent
companies have competition within their own family, but the strategy of selling their cars to
consumers is planned. Looking at Hyundai Motor Group there is the more expensive brand
Genesis, the second most expensive brand is Kia, and Hyundai being the more affordable brand.
Therefore, Hyundai Motor Group is able to appeal to the higher income consumers that are in
the market for luxury vehicles because genesis is classed as their “luxury brand” (Genesis
Vehicles: Reviews, Pricing, and Specs, 2019). Then, for people not able to afford the expensive
price tag but want reliability and performance, there is the Kia brand. Finally, the Hyundai brand
are affordable cars that have a wide range of options to compete with Genesis cars too.

External Competition
Competition between car groups for increased exposure to consumers of electric vehicles relies
heavily on their ability to market and advertise effectively. Celebrities are endorsing multiple
brands of electric cars, whether it is through a commercial, billboard, or actively purchasing the
car. There is also a large exposure to consumers through television shows and movies. Avengers:
Endgame shows Robert Downey Jr. (Iron Man) driving up to a scene in an Audi E-Tron GT
concept which was an electric car. Beyond celebrities, Chevrolet—a General Motors company—
is advertising some electric car models with the slogan of, “EVs for everyone, everywhere”
(Chevy Electric Cars Lineup: Electric Vehicle, Plug In Hybrid, 2023). The celebrities are able to
draw different demographics of people that the electric car market would not otherwise be
exposed to. When any large figure is seen supporting a product, people will tend to want to
obtain it as well. The electric car industry is included, but with much more significance. Utilizing
marketing to capitalize on consumer stances of electric powered vehicles can help increase sales
and revenue. There are also car companies using inclusive and attractive slogans that make this
industry welcoming to all people despite age and geography. An important note is “everywhere”
because as people are worried about range of the battery, as touched on in Buying Habits, this
provides a solution to that anxiety.

Conclusion
This report has included topics of the overview of electric vehicles, market trends within the
industry, and who the competitors are. The overall picture of this industry is continuing to form
and evolve with new advancement in technology and consumer preference. Driving factors of
environmental awareness and performance affect the growth of the industry. From historical
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and reliable future outlooks, there is and will be growth of revenue and size of the electric car
market. COVID-19 affected the production and development of this industry, but now after
three years we are witnessing a bounce-back in sales and research. The competition between
companies will continue to contribute to this advancement. Whether that is through creative
advertisement or strategic business modeling, the data displays evidence of a consistently
growing industry. If there are any questions or concerns about the content, I encourage
reaching out to me personally. I will have my information listed so that I may assist as need, my
email is rileyking@arizona.edu and my direct cell number is +1 (000)-000-0000.
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