News & Events
Startup Consolidation Imminent Despite Another Record-Breaking Year for Electric Mobility Investment
Outside of startup activity, 2018 also saw major automotive OEMs solidifying their commitment to developing electric mobility solutions (see our 2018 BEV Inflection Tracker for automakers' BEV strategic roadmaps). Governments have also quickly reacted to the boom in startup activity: In early January 2019, China's central government implemented new rules to stem further BEV production from smaller, newer startups as the country seeks to limit overcapacity. In the U.S., cities are continuing to ban dockless electric scooter sharing networks, as locals complain about riders abandoning scooters in the middle of sidewalks and detractors vandalize scooters by throwing them into lakes and setting them on fire. Thus, while the electric mobility space will continue to grow to address increasing demand for BEVs, clients should expect saturated startup fields – namely China's NEV landscape and the U.S.'s electric scooter companies – to start consolidating, as neither the market nor investors will be able to support financial growth for all competitors. Clients determined to enter the fray need to offer a differentiated product that meaningfully adds value – autonomy for electric vehicles or scooters that network with public transit systems – or risk being a casualty of consolidation themselves.