Title: Improving electric vehicle economics | McKinsey
Headings: 
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An industry in a jam
Consumer preferences on electric vehicles
Product availability
Electric-vehicle economics
Regulatory tailwind
Accelerating toward profitability
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Optimize electric-vehicle designs for the market
Exhibit 2
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Design simplifications and value-neutral decontenting
Optimizing for urban mobility
Final assembly optimization
Partnership during the transition
Boosting margins beyond cost cutting
Communicating electric-vehicle economics to customers
What a teardown of the latest electric vehicles reveals about the future of mass-market EVs
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Exploring new business models
Operating in an increasingly complex environment
Product design
Capital allocation
Changing mobility dynamics in cities: Micromobility’s role
Fast forward to 2025: Electric-vehicle cost parity
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Content: and in China, it was over 70 percent, given the presence of strong government incentives to adopt these vehicles. 3
3. “ Consumers in China increasingly enthusiastic about new-energy vehicles and eager for battery technology advancement, J.D. Power Survey finds,” J.D. Power, February 26, 2018, jdpower.com; China Youth Daily, August 2018, cyol.net. This trend is even more pronounced among customers younger than 50 years old living in urban areas. Sales in 2018 only provide a partial view, given that EVs accounted for less than 5 percent of sales in most markets. However, the pace of change tells a different story, with annual sales’ growth rates now frequently in the range of 100 percent or more. Product availability
On the supply side, this increasing demand will be met with a broader set of choices. Today, new EV models are launching at a rate of approximately 120 a year, providing significantly more options regarding vehicle segment, performance, feature set, and value. Compare this with the prior seven years, during which new plug-in-hybrid-EV (PHEV) and battery-EV (BEV) launches globally averaged about 20 per year, often with premium prices.