How Market Penetration Will Depend On Battery Pack Costs

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Market penetration will depend on a few key variables in each market. These will differ widely across the globe and even across the country. Adoption of EV’s will depend on battery pack costs, charging infrastructure, competing technologies, oil prices, manufacturer investments in EV’s and consumer’s doubts about EV’s. In recent years the car industry has declined globally due to inflation. It affects every part of the market, including manufacturing and production. For example, the increase in the price of fuel and steel caused a lower growth rate in developing countries and markets like India. This creates a chain reaction and ripple effect across supply chains, which slows growth as variable costs rise. Due to this, inflation many firms aren’t entering the market because they can’t offer discounts to customers due to the price challenges. Overall there are a small number of competing vehicles and small different niche’s within the EV and green market. It is extremely difficult for new firms to enter the industry. It is difficult because of the existing competition and the extremely high fixed costs associated with entering the marketplace. Firms must invest in R&D, legal, production, sales, quality control and more before even entering the game. This isn’t as big a concern for existing firms. Existing firms in the automobile market can shift resources in R&D, manufacturing and other production capabilities towards EVs. Nissan, Ford, GM and others are all
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