Center for Global Business and the Economy

The Electric Car: The Major Players

The case covers and analyzes the major players in the Electric Car Industry, including start-up and incumbent automakers, battery makers, retrofitters, utility companies and the government. In 2008, the electric car industry was poised to take a giant leap forward, with start-up companies a step ahead of large automakers. Venture Capital firms were investing hundreds of millions of dollars in promising electric car and Plug-in Hybrid (PHEV) start-ups, while existing companies were pouring billions of dollars into electric car and PHEV research. There were also companies that retrofitted existing cars, turning them into Plug-in Hybrids. At the same time, battery makers were racing to build enough lithium-ion batteries for automobiles to meet the expected demand. Most batteries were developed and manufactured in Asia. The electric car industry also required a vast infrastructure of charging stations in each country to enable electric car and PHEV owners to charge their cars outside their homes. Electricity companies were taking an interest in the industry, and began partnering with automakers to test how extensively electric cars used the grid. The case also explores what role, if any, governments should play in supporting the electric car industry, and how internal combustion engine makers were striking back with new engines that were smaller, more fuel efficient and more environmentally friendly.