A Closer Look At General Motors’ All Electric Future

Recently, General Motors (NYSE:GM) announced that it is working towards “an all-electric future” with zero emission vehicles.  The company is introducing two new all electric vehicles (EV) in the next eighteen months which will factor in changes based on the company’s experience with its Chevrolet Bolt EV. These two vehicles are part of a bigger launch of 20 new electric vehicles by 2023 announced by the company. General Motors’ first electric vehicle, Chevrolet Bolt, did not get a strong start in the U.S. and sales were concentrated in California where regulations are in place for less emission vehicles. However, the company believes that the next wave of electric vehicles will be profitable as battery prices are declining, technology is improving, and with governments pushing for clean energy vehicles, volumes are rising. China is the primary driver for electric vehicles and the country is likely to make it mandatory for automakers to ensure that at least 8% of their sales in the country are via electric cars and  recent reports suggest that the country might eventually ban the sale of new petrol and diesel engine cars.  Other governments are considering similar regulations and the UK and France are likely to make electric cars mandatory by 2040. China is the fastest growing market in the world for new energy vehicles (NEV) and by 2025 the market for NEVs in China will grow to 6 million units per year of which 4 million vehicles will be all electric. This trend is pushing automakers to focus more on electric vehicles and might change the market share breakdowns going forward. Companies with a better and cheaper technology, who are able to produce these cars faster, are likely to emerge as winners. China is a crucial market for General Motors and it can compete better in the region with a strong portfolio of electric cars.

Apart from battery operated vehicles, General Motors is also looking at hydrogen fuel cell electric vehicles – providing an option to choose the best fuel technology for each vehicle. The company introduced a concept vehicle based on the fuel cell technology termed “SURUS – Silent Utility Rover Universal Superstructure” which can be used as a delivery vehicle or even an ambulance running on clean energy. This approach of using two different technologies can give the company a competitive edge. Further, certain regions such as Japan are investing in fuel-cell technology as opposed to battery operated cars and General Motors’ technological expertise in this segment can open doors for collaboration in the future.

With automakers adapting to the changing landscape in the industry we believe General Motors has the necessary technology and strategy in place to develop a competitive edge in this new era.

See More at Trefis | View Interactive Institutional Research (Powered by Trefis) Get Trefis Technology