HOW INCUMBENTS CAN WIN THE EV WAR

China’s electric vehicle (EV) scene has experienced marked growth in recent years. Brands including BYD and Geely have grabbed significant global market share and put pressure on EV pioneer Tesla, as well as traditional automakers. This is largely due to their price advantage, knowledge of local conditions, and willingness to invest in on-the-ground infrastructure. In response to these strong challengers, most incumbents have focused on shoring up their existing internal combustion engine (ICE) vehicle market share and preserving residual value. But although this could be effective in the short term, it hardly spells long-term success amid the shift to more environmentally friendly EVs. The unravelling of the traditional auto incumbents has already begun, with Volkswagen closing multiple plants and the Stellantis Chief Carlos Tavares’s early resignation. What can traditional automakers…