What seemed far away just five years ago is now the reality.
You might wonder what we are talking about. Currently, we see a fast and confident shift towards the electrification of cars, influencing the automotive industry fundamentally. Due to the environmental challenges and targets, we face today, numerous countries and car manufacturers have committed themselves to increase the share of new electric cars sold. EV Sales have increased by more than 42% per annum worldwide from 2015 to 2019, and European investments in electric vehicles and especially their batteries reached a staggering $60bn in 2019. This alone is huge and gets even more impressive when considering the two current EV powerhouses US and China.
New players have entered the market, most predominantly Tesla, producing more than 500.000 cars in 2020, and its stock price surging by 740% in the same year.
EV stocks, in general, were extremely hyped during the last months, whether it being the Chinese manufacturer NIO or essential suppliers for the industry like Varta.
In the following, we will be taking a closer look at the recent development of the EV market, its current status, PAMO’s experience with EV’s and the implications the shift might have on luxury car dealerships.
To keep this blog more or less simple, we will only focus on electrically powered luxury cars as well as sports- and hypercars.
So what is the current status of these still rather niche products?
Today and especially in the early days of the electrification, luxury cars were and are still used as cash cows to finance the research and development of EV’s.
Tesla started its mass production with the Model S in 2012 already to then expand its product portfolio with more cars, most dominantly the Tesla Model 3, now being the number one driver of revenue for Tesla.
We can also see Porsche currently following a similar strategy with the Taycan, which we have been driving for more than half a year. But more on that later.
We can be sure to expect a lot more electrical luxurious EV’s in the near future, as manufacturers are bound to stricter emission regulations and typically start their electrical journey luxurious models for economic reasons.
In the even more exclusive spectrum, electric hypercars have also gained considerable attention and deliver mind-blowing performance figures.
New manufacturers like Rimac or Aspark have emerged, developing cars with utterly crazy performance figures.
The Rimac C Two, for example, is a Croatian machine with a carbon fiber body, producing 1914hp, accelerating the car from 0-60mph in just 1,85 seconds.
Such impressive numbers can be found across all electric hypercars and are further underlined by the fact that the all-electric Nio EP9, a Chinese car, is one of the fastest production cars around the Nuerburgring.
Similarly, renowned automotive designers like Pininfarina or manufacturers like Lotus are entering the electric stage, with their newest interpretation
When talking about hypercars, one has to mention the likes of Pagani or Koenigsegg.
Both manufacturers are currently not building any EVs, however both companies have stated to produce an electric model in the future. Koenigsegg at least already has the Regera and the Gemera, both equipped with a twin-turbo V8 hybrid, showcasing their skills to design and develop electric cars.
Pagani, on the other side, has talked about releasing a fully electric model by 2024.
In contrast, some manufacturers will also struggle with this technology, so let’s hope that it will not affect our most loved ones.
During the past year, we were able to experience the Porsche Taycan Turbo S, and oh boy, is this a fast car, especially for a daily driver. Kevin, one of the founders, used the Taycan every day and was positively surprised. Despite the challenges you face with an EV, as the limited range, this was no problem for Kevin as his daily commuting route was around 75km one way, in contrast to the Taycan’s realistic range of 350km. Besides the tremendous, and, let’s be honest, unnecessary performance, he enjoyed the silent and planted ride, along with the occasional sports sound, making you feel like you are in a spaceship.
The looks of the Taycan, both from the inside and the outside, are stunning as well, and in combination with the brand Porsche and the environmental philosophy behind an EV, he experienced throughout positive feedback from strangers wherever he would head.
However, the car has been sold and will be enjoyed by a new owner.
We might also consider another electric car as our daily driver next, maybe a Tesla or another European manufacturer? Let’s see.
To conclude this blog, we also want to share our view on the impact this shift in the automotive industry will have for our industry, the exclusive car dealers.
In the beginning, not a lot will change, other than the fact that we will sell more cars like the Taycan and at some point maybe even our first fully-electric hypercar.
Hybrid sports- and hypercars have already gained a notable foothold on the market, and we could not imagine doing business without them. Just think about all the holy trinity or the new Ferrari SF90. We surely would not want to miss then.
Petrol-powered supercars will most likely remain our dominant business in the near and mid-term future, and we are pleased about this fact!
We will forever love and drive those screaming V12’s, V10’s, flat six’s and whatever your petrol heart desires.
On the other side, we look forward to a more sustainable future powered by innovative technologies.