The Advantages of Advanced Vehicle Technology Early Adoption
As an Advanced Electric Drive Vehicle Technologies (i.e., Hybrid, Plug-In Hybrid, Extended Range Electric, and Battery Electric vehicle) solutions provider, FutureTech is often asked by prospective clients about the wisdom of adding Advanced Technology vehicles to their service program portfolio. The Aftermarket, in particular, has asked this question with increased frequency during the past 2-3 years. This initial question often compels a deeper question of when they should add Advanced Technology service programs to their business model. It’s obvious that electric drive vehicle technology and its derivatives are quickly becoming essential to most automotive OEM vehicle platforms. The fuel economy and emission requirements for the OEMs have driven them to use the electric drive powertrains with efficiencies that are considerably higher than traditional vehicle powertrains. With fuel economy requirements elevating quickly each year, and the 2025 mandate of 54.5 mpg looming in the background, OEMs are not waiting until the last minute to try meeting these elevating fuel economy requirements. Additionally, Zero Emission Vehicle (ZEV) Credits and Multiplier ratios from the federal government are decreasing as the fuel economy requirements increase. This means that more electric propulsion vehicles will be required to meet the compliances.
The OEMs such as Honda and Toyota began to enter the market and offer hybrid vehicles for sale in model years 2000 and 2001, respectively. From 2000 – 2013, there were approximately 2 million Advanced Technology vehicles sold in the US Market. From Q2 2013 thru Q1 2016 there are more than 4 million in the US market. Therefore, it had taken only 3 years to double the number of Advanced Technology vehicles in the US market from 2 million to 4 million units. These significant exponential sales numbers cannot be ignored. This is a volume that the Aftermarket, Fleets, and other related industries should consider when examining their business model for possible changes toward profitability. The addition of Advanced Technology products and the rate of change in the adoption of these technologies follow a model developed by Everett Rogers in the early 1960’s. Roger’s Model can be used (generally) to project how technologies will be adopted and the rate of change to the adoption. Specifically, the Rogers Model provides a blueprint for how business opportunities intersect with profitability. When considering this model, it can be seen that the majority of profitability occurs in the Early Adopter and at the beginning of the Early Majority phases.
When comparing Advanced Technology vehicle deployment from 2000 – 2016 to the Rogers’ Model, it is FutureTech’s opinion that the Aftermarket is in the early stages of the Early Adopter phase. The doubling of the Advanced Technology products from 2013 – 2016 was (in our opinion) the initiation of the Early Adopter phase. Specifically, the Early Adopter stage offers the highest Profit Opportunity. There are many business investors that acquired significant profit from companies such as Amazon, Apple, Dell, Google, Microsoft, Twitter, etc. when these companies were in the Early Adopter stage. Unlike investment stocks, investing to service the Advanced Technology vehicles isn’t much of a risk because, the automotive industry has already made their commitment to move in this direction. Therefore, since the market has already moved into this direction there is only one question for you: Are you ready to enter the Early Adopter phase and profit from the era of Advanced Technology vehicles?
Advanced Technology electric drive systems will force disruptive technologies into the service space and these changes will be significant. The OEMs will continue to escalate the utilization of electric drive systems well into the future, coupled with technologies such as Autonomous vehicles. If you are a business owner in the automotive service space, you should consider entering the Advanced Technology service market now to enjoy the full benefits of profitability, and be known in the industry as a pioneering market leader – and FutureTech, as an experienced technology and innovation company with scalable solutions that are available NOW, is ready to work with you to make a smooth transition.
Find out how many Hybrid & Electric Vehicles are in your business' service area, and find out how many customers you - as an early adopter - could be serving now.
Innovating Vehicle Electrification Support to the Automotive Aftermarket.