Can A More Focus Early Bird Reap The Rewards of EV Market? Neglecting This Market Will Be The Downfall of Any Great Automaker In The Coming Days?
Before you read on, I want to clarify my standing in regard to the pure electrical vehicle and all related matters. To sum it up, I do think the EV market will be huge in the future. Furthermore, I bought some common shares (stock) and go long on an EV maker which I will not name here. So, my standing is that I'm biased and positive in the EV sector.
A question I want to address in this blog post is whether can a country or a company in the car industry be left behind by ignoring the EV market. It seems Toyota is still moving too slowly on going all-in in producing pure electrical cars. I'm wondering, perhaps, if Toyota thinks that the EV market is not big enough and there isn't enough demand for EVs out there, and so it's OK for them to move slowly into this market. Nonetheless, I think this would be a big mistake for Toyota and other automakers out there that think the same way as Toyota is currently thinking in regard to EVs of all things.
I suspect that Tesla and other EV makers out there who are going long and early into the EV market will be able to set some standards for the whole EV industry. Why do you think Chinese and South Korean automakers cannot shine brighter than automakers in Japan and Europe? Well, most automakers in Europe and Japan have been at the game much longer than the ones in South Korea and China. The European and Japanese automakers have been churning out complicated but well-respected non-luxurious and luxurious vehicles with internal combustion engines for decades. Nonetheless, when it comes to electrical vehicles, it's still anybody's game.
I'm no expert in the auto industry and whatever I'm spewing here is just an ordinary Joe's perspective on the car industry. Nonetheless, my suspicion is that the EV market will be so huge and has a very big potential for investors because of several things.
Firstly, China got the biggest auto consumption market in the world. Nowadays, if you're an automaker, I doubt that you would want to neglect such a big auto market as the one in China. So, when the Chinese government prioritizes EVs (and other new energy sources for making vehicles and other transportation means) -- I think it's a very big deal. After all, the Chinese government demands a certain percentage of pure EVs to be made and sold by each automaker that wants to participate in a growing Chinese auto market.
Secondly, as a country like China and Germany build up EV charging points to promote pure electric vehicles, people are going to be more comfortable going out and buying more EVs since they know they can charge their vehicles anywhere eventually. Meanwhile, some EV makers are also trying to improve battery range and charging speed, and thus greatly enhancing the demand for a pure electric vehicle. Some automakers go as far as to provide a battery switching option which could take less than five minutes to switch out a drained battery with a fully charged one so you can drive your EV out of the charging station in no time.
I think high-cost value products like a car rely on reputation a lot. Thus, I think when all necessary ingredients are eventually put in place for the pure electric automakers to thrive, they only have their reputation to depend on and fall back onto. This means, whoever is in the game the longest doesn't necessarily be the best, the biggest, and the most awesome if the reputation is stink. Nonetheless, when the time is right for the EV sector to grow, a great reputation is exactly the thing a pure electric automaker needs to thrive onward. Thus, I think as long as a pure electric automaker got an early head start and keeps on building a great reputation, it will be very hard for the newcomers to come in and uproot the foundation of the great pure electric automaker.
One more thing, Mr. Bill Gates mentioned that it was his mistake not to push more focus into the smartphone industry thus Apple and other Android smartphone makers were able to thrive but Microsoft did not do so great in making a well-respected and well-known smartphone. I think Toyota and whatever automakers out there should take the lesson of Microsoft in regards to being a more focused early bird.