The Top Three Challenges for EV Automakers & Suppliers

Members Corner

Source: RPM Europe, 2021-04-27

Global electric vehicle sales and production are rising rapidly. In December 2020, European sales rose 264% year over year, reaching 23% share; China sales rose 12% year over year, reaching 9.4% share; and global sales rose 105% year over year, reaching 6.9% share. J.P. Morgan, estimates that “by 2025, EVs will contribute close to 8.4m annual vehicle sales, a roughly 7.7% market share.” While this is incredibly positive news for EV automakers, it also means that vehicle transportation must be fast and efficient moving further into 2021 and beyond. However, unlike transportation for conventionally powered vehicles, there are some nuanced challenges that come with transporting new EVs to market.

As one of the largest non-asset-based flexible logistics providers for EVs, RPM works closely with our EV clients to accurately identify and effectively solve their biggest transportation challenges. 

Speed to Market 

Whether we have to source 50 trucks to a factory, with minimal notice, or fulfill home delivery orders that require expedited transport direct to consumer, filling quality and dependable capacity is paramount. But fulfilling capacity needs quickly is only half the solution. RPM’s robust global network across North America and Europe includes a subset of independent carriers experienced in OEM/EV finished vehicle transportation. In addition, these independent carriers possess best-in-class loading and unloading skills, proper certifications, and high-quality equipment to handle all types of finished vehicle moves. They are trained on the latest logistics mobile applications and understand the intricacies and requirements of high-visibility moves. As a result, we are the turn-key high-volume or niche service provider that is built to deliver.  

Flexibility

The rapid growth of the EV market requires a flexible logistics provider. EV supply chains’ complexities with the handling and shipping of lithium-ion batteries is challenging for a few reasons. One reason is increased weight. As cited in Auto Logistics Magazine, “EVs’ batteries add significantly to the overall weight of a vehicle. That impacts on car transporter fuel consumption, not to mention equipment wear and tear, but it also means the overall weight of a given transporter load can exceed the 40-tonne limit set by European Union law.” As a result, this will reduce the overall load factor (number of units on a single trailer). Another challenge is the flexibility needed to support a client’s fast changing network demand due to consumer market prioritization. RPM’s model provides optimal solutions to support these challenges. 

Risk Management

RPM is knowledgeable in the claims process. If you are an EV shipper, you cannot afford to let supply chain disruptions or inefficiencies negatively affect your sales in this rapidly growing market. Whether it’s the challenges outlined above or other challenges you are facing, RPM is confident that our ability to source capacity quickly and cost-effectively can help you achieve your sales goals. For more information about our services, please visit RPM.


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