Established OEMs Have a “Duality of Growth”
OEMs must simultaneously manage their ICE business while growing the EV business.
Established players must navigate the dual challenge of maintaining profitability in their existing ICE business while aggressively transitioning into EVs. As ICE declines and EVs rise, strategies to integrate into the EV ecosystem are crucial. Considerations include OEM platforms and supply chains, where traditional OEMs have an advantage over new EV players starting from scratch. However, managing in both realms simultaneously poses challenges. In the short term, dual offerings of ICE and EV versions of the same product are inevitable, with long-term strategies focusing on distinct EV-only and ICE-only options.
That straddling of where we’re at to where we’re going becomes the challenge for the traditional OEM, which is not something the emerging EV OEMs have to deal with right now.
- Steve Patton, Ernst & Young LLP
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The Duality of Growth
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