EV competitive dynamics

Issue #208, June 18, 2023

Electric vehicles (EVs) see multiple initiatives taken by their manufacturers to carve their niche in this competitive space. Toyota which has been relatively late in making its EV intentions clear aims to release a solid-state battery in 2027 to double the usual driving range. Its latest engineering feat is an EV that behaves as if it has a stick shift, to mimic manual transmission with a feel of gear shifts and a roaring engine. JLR has embedded AI into its systems for timely alerts to supply chain challenges. GM's plans to mirror Tesla's playbook are to go for vertical integration for EV manufacture. Mercedes-Benz and Microsoft are partnering to test in-car ChatGPT for audio requests. Chinese EV maker Nio said it would end free battery swapping services to new buyers, as it faces mounting pressure over earnings losses and lukewarm sales. Ford Executive Chairman Bill Ford said the US was not ready yet to compete with China in the production of EVs due to the speed at a large scale. Ford will need a distinct brand or lower costs to be competitive. Here are some recent updates on the competitive dynamics in the EV industry.

Toyota's EV with solid-state battery

Toyota Motor aims to release an EV powered by an all-solid-state battery as early as 2027, with the technology expected to more than double the car's range from a single charge. The Japanese automaker revealed the plans in a recent briefing. The technology is expected to be commercialized in 2027 or 2028. - Nikkei Asia

AI for supply chain challenges

JLR has partnered with a supply chain mapping and risk analytics firm to embed AI into the carmaker's system to help avert future global supply issues. The new AI technology will allow JLR to monitor its supply chain in real-time and protect the production of its current models and next generation of EVs. The technology uses a combination of AI, predictive analytics, machine-learning and human intuition to plot emerging incidents, such as natural disasters, strikes, data breaches and export issues on a global map. - Reuters

GM's vertical integration plans

General Motors plans to open a fourth battery plant in the US as part of its programme to chase Tesla on EV sales by following a similar playbook. Tesla pursued a strategy of vertical integration over the past decade. More than three years ago GM, too, began building out its North American supply base for EVs. GM’s vertical integration strategy grew out of two realities. China had fostered its own EV supply chain over the previous decade. And while Tesla has partnered with Panasonic to build the Gigafactory, battery cells and components in North America available to GM were limited. GM has been moving upstream too, to access minerals required for batteries. - FT

ChatGPT for audio requests

Mercedes-Benz and Microsoft are partnering to test in-car ChatGPT, available to more than 900,000 vehicles in the U.S. The emerging technology will be used for audio requests through its Hey Mercedes voice assistant, which is expected to greatly expand the system’s capabilities. It is the first implementation of ChatGPT in a vehicle, according to a Microsoft spokesperson. ChatGPT leverages a large language model to greatly improve natural language understanding and expand the topics to which it can respond. - CNBC

Toyota EV mimics manual transmission

Toyota’s latest engineering feat is an EV that behaves as if it has a stick shift, complete with revving sounds and faux gear shifts. The EV mimics manual transmission with a feel of gear shifts and a roaring engine. The system, still under development, could even stall the car if controls are fumbled. - WSJ 

No free battery swapping

Chinese EV maker Nio said it would lower prices for all its models and end free battery swapping services to new buyers, as it faces mounting pressure over earnings losses and lukewarm sales. Nio had been offering the swapping services for free at least four times each month to existing owners. It is among only a handful of EV makers betting on battery swapping as a major power option for electric cars while main rival Tesla has dismissed battery swapping as "riddled with problems and not suitable for wide-scale use." - Nikkei Asia

EVs - low cost, distinct brand, and speed

Ford Executive Chairman Bill Ford said the US was not ready yet to compete with China in the production of EVs. "They developed very quickly, and they developed them in large scale. And now they're exporting them," Ford said. Chinese EV makers are its main rivals in the sector, and Ford needs distinctive branding or lower costs to beat Chinese automakers. - Reuters