Mass market EVs go custom: The era of tailored transport

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  Quantumrun Foresight
• June 24, 2024

Insight summary

The automotive industry is moving towards electric vehicles (EVs) and customer-oriented service models, including mobile services and direct-to-consumer (DTC) sales approaches. Companies are increasingly collaborating to design EVs for ride-sharing and delivery, which could change how we use cars in cities. This shift challenges traditional dealership models and prompts significant changes in vehicle ownership, manufacturing strategies, and governmental policies regarding urban planning and environmental regulation.

Mass market EVs goes custom context

The automotive industry is undergoing a significant transformation, particularly with the increasing adoption of EVs and the demand for more customer-centric service models. For example, Ford is enhancing its service offerings by providing mobile services directly to customers. This move aims to streamline the vehicle service experience, offering free vehicle pickup and delivery, along with on-site repairs—a service model that echoes the convenience provided by companies like Tesla. Tesla has notably disrupted traditional dealership models by controlling the purchasing and service experience, offering in-driveway repairs through a mobile app. 

At the forefront of customization and efficiency in the EV market, Uber is innovating by collaborating with automakers to design models specifically optimized for ride-sharing and delivery services. These vehicles are envisioned to have lower top speeds suitable for city driving and configurations that promote easier passenger interaction alongside smaller, more maneuverable delivery vehicles. Uber is not only contributing to the electrification of its fleet but also setting a precedent for the future design of city-optimized vehicles.

The debate between direct-to-consumer (DTC) and franchise dealer sales models is another area of evolution within the EV sector. The DTC model, popularized by Tesla and adopted by emerging players like Rivian, allows customers to purchase vehicles directly from manufacturers, challenging the traditional dealership model. This approach has been celebrated for its simplicity and customer convenience. However, the role of franchise dealers remains pivotal, especially in scenarios where supply exceeds demand, offering advantages in local marketing, merchandising, and dynamic pricing. 

Disruptive impact

People could benefit from reduced vehicle maintenance time and costs, as services come directly to their homes, eliminating the need to visit dealerships for routine checks or repairs. This trend may also influence car ownership patterns, with some opting for tailored EVs that better suit their lifestyle. However, there could be increased reliance on technology for vehicle maintenance and service scheduling, potentially alienating those less comfortable with digital tools or without consistent access to the internet.

The automotive and transportation sectors might need to adjust their strategies significantly in response to these trends. Companies could see a shift in consumer demand towards vehicles designed for specific functions, prompting a diversification of product lines. This shift may encourage partnerships between tech companies and traditional automakers to leverage each other's strengths in vehicle design and digital service platforms. However, businesses could face challenges in scaling these new models while ensuring quality and consistency of service, especially if relying on a network of dealers or franchises to deliver mobile services.

Governments may play a crucial role through regulations and policies that promote the adoption of EVs and support infrastructure development. Policies may need to adapt to accommodate the increasing presence of specialized EVs on the roads, including updating traffic laws, zoning regulations for charging stations, and incentives for adoption. Additionally, governments might need to consider the implications of mobile vehicle services on urban planning and public transportation systems.

Implications of mass market EVs goes custom

Wider implications of mass market EVs goes custom may include: 

• More diverse urban mobility solutions, reducing reliance on traditional gasoline vehicles and lowering urban air pollution.


• Automakers adopting more flexible manufacturing systems to accommodate the demand for customized EVs, leading to more efficient production processes.


• The rise in customized EVs fostering a new wave of startups focused on niche markets, stimulating job creation and economic growth.


• Governments implementing stricter emissions regulations to encourage the adoption of cleaner, customized EVs, improving national energy independence.


• A shift in consumer preferences towards customized EVs encouraging public and private sectors to invest in charging infrastructure.


• The labor market adapting to the EV industry's needs, with increased  demand for skills in electric powertrain technologies and custom vehicle design.


• Customized EVs prompting changes in insurance models, with premiums potentially reflecting each vehicle's unique features and capabilities.


• Enhanced data collection from customized EVs leading to better traffic management and urban planning decisions.


• Local economies benefiting from the decentralization of vehicle services, as mobile service options for EVs support small businesses and reduce overhead costs.


• Political debates intensifying around the allocation of public funds for EV infrastructure versus traditional transportation projects, reflecting shifting priorities towards sustainable mobility.

Questions to consider

• How will custom EVs change your daily commute and travel habits?


• How can local businesses adapt to benefit from the rise of mobile vehicle services?