Before Henry Ford’s mass production of Model T disrupted electric car industry in early twentieth century, his wife—Clara—drove a 1914 Detroit Electric; as battery-powered cars were more reliable and did not backfire like their gas-powered counterparts.
Fuel-powered car industry went through various changes since then and was in top gear for over 100 years. But innovation in battery technology at the turn of 21st century resurrected electric vehicles resulting tough competition among car manufacturers especially in the segment of Electric Super Luxury Car (ESLC). This is because most of the companies like Tesla, Lucid, Fisker, etc. are instrumentalsing driving range as foremost competitive tool to capture the greater proportion of the market of ESLC.
|Company||Model||Range per Charge||Price (Subjected to change)|
|Tesla||Tesla S 100D||335 miles||US $92,500|
|Lucid||Lucid Air||400 miles||US $100,000|
|Fisker||Fisker EMotion||Above 400 miles||US $130,000|
|Faraday||Future FF91||378 miles||Over US $180,000|
On the other hand, Original Equipment Manufacturers (OEMs) are struggling to compete with their Silicon Valley based auto manufacturer like Tesla and Fisker in terms of range but are expected to bounce strongly in near future as companies like Volkswagen, BMW and Mercedes Benz are spending more than US $13 billion, $7 billion, and $6 billion respectively in R&D every year.
From sales perspective, established brands are left miles away by new market entrants in the market niche of Electric Super Luxury Car. For instance, nearly 1600 BMW i8 were purchased in the US last year whereas the country witnessed more than 18,000 Tesla Model X on its road in the same time frame. The US is the largest Super Luxury Car market of the world accounting 30% of global sales.
With strict emission regulations and increasing billionaires across the globe, the demand for ESLC is estimated to rise by double digit—10% to 15%—by 2020.
According to Forbes list of billionaires, there are more than 2000 billionaires throughout the world at present and are expected to double by 2020. It means Electric Super Luxury Car manufactures with longest range and luxury features will come out with flying colours in next decade just like Steve Jobs did with Apple in the first decade of 21st century.
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at email@example.com
Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at firstname.lastname@example.org | +603 6204 5830