By the end of 2024, it’s predicted that electric cars might account for 20% of total car sales. As a subsector of one of the largest industries in the world, automotive sales and manufacturing, this is a significant upward trend and shows that electric vehicles (EVs) are a key player in the quest for sustainable transport solutions. However, the goal of reaching full electrification of the automotive industry is undercut by the challenges of encouraging widespread adoption, including insufficient charging infrastructure, ineffective incentives for buyers, sustainability concerns and a general lack of knowledge of the environmental and economic impact of EVs.
This blog post will explore the history and development of the automotive industry and EVs, the challenges faced by the growing global EV sector and the increasingly crucial role of localisation in companies finding success with suppliers and consumers alike.
History of the automotive industry
The automotive industry has its roots in the late 19th and early 20th centuries, a period marked by rapid technological advancements and innovations. The invention of the internal combustion engine revolutionised transport, leading to mass production of petrol- and diesel-powered vehicles, as opposed to the previously popular steam-powered carriages, from which the word “car” is derived.
The development and rise of EVs
Despite the dominance of gas-powered vehicles, the concept of electric vehicles and the electrification of the automotive industry is not new. The first electric cars were developed in the 1800s, but they struggled to compete with their gas counterparts due to limitations in battery technology and infrastructure. For example, well-known automotive manufacturers such as Porsche dabbled in electric vehicles, including producing the Egger-Lohner C2 Phaeton pictured below. However, as electricity wasn’t widely available outside of city centres until the mid-20th century, their customer base was severely reduced, and it wasn’t as profitable as gas-powered cars.
Key players in the current EV sector
In recent years, there has been a resurgence of interest in electric vehicles, driven by advancements in battery technology, increasing environmental awareness and stringent emission regulations.
Companies like Tesla have spearheaded the electrification of the automotive industry, proving that EVs can be both practical and desirable. Other notable key players include the Chinese company BYD and German car manufacturer Volkswagen. However, as the industry continues to grow, global competition is also intensifying, meaning no company is predicted to monopolise the industry moving forward.
Globalisation of the automotive industry
The strongest producers of cars by region are Europe, North America and China. But the globalisation of the automotive industry has led to the expansion of markets and the establishment of global supply chains, meaning companies now manufacture and sell vehicles across multiple continents.
Cross-border supply chains and innovation exchange
The same is true for the EV sector, as there are many stages to the production process: the mining of raw materials for batteries, processing and refining these materials, manufacturing batteries and the vehicles themselves, selling and distributing EVs and recycling of EV batteries. This complex process means that multiple stakeholders and suppliers are involved across multiple countries; for example, most minerals are mined in Australia, Chile and the Democratic Republic of Congo, while China produces the majority of lithium-ion batteries.
This globalisation of the industry has also facilitated the exchange of technology and expertise between countries, driving innovation and improving the quality and efficiency of automotive products. Collaborative efforts in research and development have accelerated the progress of EV technology, particularly in areas such as electrified roads and EV charging.
Future EV market expansion and development
As demand for EVs continues to rise significantly with each year that passes, the pressure is on the countries involved in this supply chain to expand the industry rapidly to meet consumer demand and government ambitions to reach net zero carbon emissions. If widespread electrification of the automotive industry is to be achieved, new technologies must be shared and communicated effectively across languages and cultures, while growth strategies must be accurately presented to governments and funding bodies around the world.
Benefits and challenges of EVs in the automotive industry
The shift towards EVs is a vital component of global efforts to combat climate change and promote sustainable development since they offer numerous environmental advantages, including reduced greenhouse gas emissions, lower air pollution and less dependence on fossil fuels. They are also an economically-friendly option once purchased because they are cheaper to run, have lower maintenance costs, and some governments offer economic incentives such as zero vehicle excise duty for EVs.
Economic and logistical barriers to EVs
However, while electric vehicles hold great promise, there are challenges to overcome. The upfront cost of an EV can be a barrier to many people, which is something that governments must continue to address through financial incentives. The lack of public charging infrastructure is a big topic of debate because although private and home charging meets most of the current demand, the expansion of EVs over the next few years will require more accessibility in public spaces.
Sustainability issues in EV manufacturing
Finally, there’s the issue of ensuring the sustainability of the entire production and supply chain. While consumer use of EVs may appear more environmentally friendly than gas-powered vehicles, the mining and manufacturing process is not especially sustainable or ethical. Lithium mining uses too much water, emits a great deal of CO2 and releases toxic fumes, not to mention the ethical concerns relating to workers in the mines.
However, innovative new technologies and chemistry methods including manganese-rich cathodes and battery recycling provide an opportunity to move away from mining towards a more sustainable supply chain. Moreover, increasing the use of renewable energy within the EV supply chain could help resolve many of the challenges associated with EV sustainability and further encourage the electrification of the automotive industry.
Possible strategies to confront EV challenges
Improving these aspects of EVs is critical to encourage global uptake and the switch from gas-powered to electric-powered vehicles. Due to the global nature of the industry, addressing these challenges demands effective communication across languages and cultures to improve the globalised supply chain and meet the needs of different consumers in different parts of the world.
Localisation: A crucial strategy for widespread adoption of electric vehicles
Localisation involves adapting products and their supporting documentation to meet the specific needs and preferences of different regions. In the context of the automotive industry, this means understanding local market conditions, consumer behaviour and regulatory requirements. For instance, the demand for EVs varies across countries due to differences in infrastructure, government incentives and environmental awareness.
Ensure cultural awareness
Cultural sensitivity is essential in any industry to successfully launch a product internationally. But what does this look like for EVs? Well, you must consider factors such as local driving habits, aesthetic preferences and technological expectations. You must also change your messaging around sustainability to resonate with local audiences; for example, consumers in the Nordic countries may already have significant awareness of the environmental benefits of EVs and would prefer to have more information on charging accessibility in their country.
Of course, it’s not expected that you will have all this knowledge right away. You will conduct extensive market research to understand the knowledge that consumers are looking for. A language service provider can be a great collaborative partner in this process, providing cultural consulting to help with your expansion strategy. Working with linguists who are well-versed in the automotive industry and sustainability in your target market will be the best path to meeting local audiences on their level.
Navigate regulatory landscapes
Different regions have varying regulations concerning vehicle emissions, safety standards and manufacturing practices. This is particularly complex in the EV sector, which has a supply chain that stretches across many parts of the world. Adhering to these regulations is crucial for EV companies to successfully enter new markets, especially because of the ethical and sustainability issues being raised in the discussion about EVs.
Collaboration with multilingual experts who specialise in the types of content you will need, including legal contracts, safety documents and warnings, as well as research information, provides the deep understanding of local regulatory frameworks you need to ensure compliance and avoid legal challenges.
Communicate EV incentives to governments and buyers
Moving forward, one critical element in developing the EV sector to meet rising demand, as well as expanding demand even further, is to encourage governments to provide incentives such as subsidies and tax breaks to local buyers. Governments must also improve cooperation and knowledge sharing between countries to fuel innovation even further, but this isn’t possible without accurate and effective communication.
That’s why localisation is key here too; without it, you won’t be able to help the stakeholders involved – whether it’s governments, suppliers or consumers – understand the benefits of EVs and the role they will play in building a sustainable world, not to mention the economic benefits and the improved ability of countries to become energy self-sufficient in the future.
Use linguistically and culturally accurate terminology
Automotive content can be trickier than other types of content, as terminology varies greatly between languages and even within variants of the same language. For example, US English and UK English frequently use different terms for the same vehicle part, such as the car “trunk” or “boot”. Additionally, there is a tendency in automotive content for source text writers to use terms that have no established translations. Some terms, such as “trim” or “wing”, could even have multiple meanings in the context of a vehicle, and the correct meaning must be determined before translating that term.
Accurate translation of this content therefore requires extensive research to identify these terms and to apply them properly to your target market by understanding how other automotive companies in that local market have translated them. It’s unlikely that you have the resources and time to do this research yourself, which is why you should always consult an experienced team of linguists who have the linguistic and cultural knowledge of the target market needed to get the terminology right.
Future trends and advancements
The evolution of the automotive industry, driven by the rise of EVs and the push for sustainability, highlights the importance of adapting to global and local dynamics. Localisation is a key strategy for automotive businesses to better understand and address the unique needs of different regions.
Looking ahead, the future of EVs is poised to be shaped by breakthroughs in battery technology, autonomous driving and connectivity. These advancements will enhance the efficiency, safety and convenience of EVs, making them more attractive to consumers. However, without cultural and language considerations in your materials, you will struggle to connect with potential customers and find it difficult to help fuel the electrification of the automotive industry while achieving your business goals.
To discuss how you can partner with automotive localisation experts at Sandberg to create, refine or improve your content strategy for international audiences, please get in touch with us at info@stptrans.com or book a free consultation here.
