Debunking EV misconceptions that may impede supply chain strategy
13 Mar 20236 min read
Summary
- Misconceptions around electric vehicles (EVs) — such as charging always being slow or EVs being inherently less reliable — are inhibiting strategic supply‑chain decisions in the EV ecosystem.
- These myths can deter consumer demand, undermine investment in infrastructure and delay the upstream mobilisation of battery, materials and logistics networks, which in turn weakens the overall supply‑chain strategy.
- To build a resilient EV supply chain companies must tackle these misconceptions head‑on by aligning marketing, consumer education and logistics planning so that demand, technology deployment and supply‑chain readiness move in sync.
Often, the supply chain strategy of an EV company is affected by the marketability of EVs. Marketing initiatives help steer demand. Without demand, the movement within the EV ecosystem could fail, which can impact the EV supply chain.
In this case, misconceptions may demotivate consumers to buy EVs. Hence, it is essential to raise awareness about EVs and their characteristics. Especially since Asian countries are beginning to lean towards EVs as sustainable transportation solutions.
Mainly, EVs have caused concerns regarding their cost-effectiveness, reliability, economic value, and environmental impact against internal combustion engine vehicles (ICEV).
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“Adoption has not gone faster because there is a hesitation in pivoting from something so trustworthy in the internal-combustion engine to something relatively new technology," said Russell Hensley, co-leader of the McKinsey Center for Future Mobility in the Americas.
MYTH 1: EVs' environmental footprint is greater than ICEVs
The manufacturing of an EV indeed creates more emissions than the production of an ICEV. However, the emission of an EV is just a third of the lifetime emission of a gasoline-powered automobile, even after accounting for EV battery production and disposal.
Air pollution from factories during battery production accounts for most EV emissions. Notably, according to the United States (US) Department of Energy, EVs convert over 77% of electrical energy from the grid to power the wheels.
MYTH 2: EV batteries are unsafe
Battery Management System (BMS) enables monitoring of battery temperature and performance. It aids in maintenance that could prevent electric car problems relating to batteries.
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