The reasons behind the 'cruel history of high-priced electric vehicles' as forecast by European car company CEOs...

*This content was translated by AI.

The global EV (electric vehicle) market, which had grown rapidly with the wind of global green transition, has hit a massive wall, from premium EVs to the supercar segment. From Jaguar's legendary designer to the pioneer of hypercars and heads of supercar brands, all are pointing out the limitations of the high-priced EV market and taking steps to revise their strategies. Based on analysis by industry experts, we examine three decisive reasons why high-priced electric vehicles are being ignored by wealthy consumers.

The biggest reason is the lack of 'emotional value' that the core customer base of ultra-high-priced vehicles desires. Ian Callum, Jaguar's former head of design, identified 'the electric powertrain itself' as the biggest challenge for high-priced electric vehicles. The main consumer base for supercars is a generation that values traditional engine sounds and the tactile feel of gear shifting. The unique quietness of electric vehicles is merely an element that reduces the fun of driving for them. Asset owners consume cars not simply as transportation to reach a destination quickly, but as mechanical art pieces that stimulate the five senses.

The second reason is the 'loss of scarcity and differentiation.' Mate Rimac, CEO of the electric hypercar brand Rimac, analyzed that "as electrification has become widespread even in the mass market, wealthy consumers no longer regard electric vehicles as special." In the past, electric vehicles were known as cutting-edge technology for early adopters, but now they have become a common drive system that anyone can use. The fact that hypercars worth billions of won share essentially similar battery and motor mechanisms with mass-market electric vehicles costing tens of millions of won is a factor that lowers the purchase desire of asset owners.

Finally, for consumers of high-priced vehicles, the 'economy' which is the biggest advantage of electric vehicles holds no appeal at all. Those who drive supercars or luxury cars are not interested in saving on fuel or maintenance costs. This is also the reason why Lamborghini CEO Stephan Winkelmann strongly criticized the development of pure electric vehicles in a situation where the market is not ready, calling it an "Expensive Hobby" and a "financial risk to shareholders." The diagnosis is that pushing electrification forcibly in a situation with no demand is a reckless gamble from a corporate management perspective. Recently, Volkswagen CEO Oliver Blume admitted that Porsche's original goal of "filling 80% of sales with pure electric vehicles (BEV) by 2030" was overly optimistic. This is because the sales of the Taycan did not meet expectations.

Reflecting these market realities, Lamborghini has indefinitely postponed the launch of the pure electric vehicle originally announced and has sharply shifted its strategy to focus on the V8 and V12 engine-based plug-in HYBRID (PHEV) lineup. The intention is to meet regulations while preserving the emotional feel of the engine that customers want until the end. Pure electric technology, once hailed as the future of automobiles, has failed to win over the hearts of asset owners in the ultra-high-priced car market and is returning to internal combustion institutional investors.

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*This content was translated by AI.