Top EV trends, challenges, and strategies every manufacturer should know

The electric vehicle market is a corner of the automotive industry growing at unprecedented speed. Among EV trends to note, in 2023 nearly one in five cars rolling off dealer lots was electric, marking a shift in how the world thinks about transportation. Electric car sales surged by 3.5 million in 2023 alone, accelerating 35% beyond 2022. To put that pace in perspective, every week of 2023 saw more new EV registrations than the entire year of 2013.

But with this opportunity comes new challenges for manufacturers. As production demands surge and technology evolves, EV manufacturers must stay ahead of the curve. The question isn’t whether to adapt, but how to transform your manufacturing operations to meet this moment.

By 2030, the United States is on track for EVs to be about 50% of light-duty vehicle sales, and manufacturers are looking for ways to keep pace. Several factors are driving the challenges ahead, and smart manufacturing can help you navigate them.

Scalability & flexibility

One EV trend here to stay is the development of new battery technologies, and production systems need to be dynamic. Auto executives (77%) say that maximizing resource efficiency will be a game-changer, but having the right resources is just the starting point. You need manufacturing systems that can flex and scale without reducing quality or missing production targets.

Schneider Electric’s Modular & Scalable UPS solutions, like the Galaxy VL with eConversion technology, ensure secure power backup while optimizing energy efficiency. Their compact design saves valuable space, making them ideal for EV battery plants where maximizing floor space is critical​.

Additionally, Prefabricated Modular Data Centers provide a fast, flexible, and scalable infrastructure to support your IT needs, from the cloud to the edge. These ready-to-deploy solutions can be quickly configured and expanded as production grows, reducing deployment time and ensuring consistent performance across all facilities​.

With these scalable power and IT solutions in place, you can confidently scale production to meet rising EV demand while maintaining operational efficiency and sustainability.

Two engineers with white hard hats working in a factory that produces ev (electronic vehicles)

Infrastructure & connectivity

As you expand into new plants and territories, isolated electrical systems become more of a headache and a roadblock to efficiency. Think of it like trying to drive with a disconnected navigation system. You need a centralized management approach that connects all your facilities, standardizes your processes, and keeps production running smoothly. With an efficient electrical distribution strategy, you can meet those tight deadlines and prevent costly disruptions before they happen.

With EcoStruxure IT, you can connect assets across multiple plants using regional and edge data centers to create a more resilient and responsive infrastructure. This solution provides real-time visibility and control over your critical power and cooling systems, enabling faster decision-making and proactive maintenance. By streamlining operations and preventing costly disruptions before they happen, you can meet production deadlines with greater consistency and efficiency.

Quality & sustainability

Sustainability is propelling the entire EV industry. You’ll need a complete carbon roadmap that tracks and optimizes emissions across your value chain. And with a highly efficient UPS system backing you up, you can keep your production lines running without compromising on your sustainability goals.

Schneider Electric’s Galaxy VL Modular UPS plays a key role in achieving these goals. With its industry-leading 99% efficiency using eConversion technology, this UPS system minimizes energy consumption while delivering reliable power backup. Compared to traditional double-conversion systems, Galaxy VL reduces electricity use, contributing to a lower carbon footprint. Its compact, high-density design also reduces space requirements, supporting more efficient facility layouts​.

Complementing this is the use of Prefabricated Modular Data Centers, which provide a fast-to-deploy, energy-efficient IT infrastructure. These data centers are designed for optimized cooling, power usage, and operational efficiency, helping EV battery plants reduce energy consumption while supporting critical digital operations​. Additionally, Schneider Electric’s solutions ensure resource-efficient performance throughout an asset’s lifecycle, with verified environmental footprints and minimal use of hazardous materials​.

By integrating these sustainable power and IT solutions into your manufacturing ecosystem, you can minimize environmental impact while maintaining the high quality and reliability that EV production demands.

An image of the outer shell of an ev (electronic vehicle)

Armed with a better understanding of the challenges involved, you can begin formulating a strategy to help you stay ahead of the market. Here are some strategic approaches we recommend.

Turn data into your competitive edge

It’s time to put your data in charge. With IoT platforms and control tower solutions, you can capture real-time insights into everything from battery performance to production efficiency. Digital twin technology lets you test process improvements before implementation, while AI and machine learning optimize your operations at every turn. The result? Faster innovation, smarter decisions, and a clearer path ahead.

AI deployment brings both opportunities and challenges, particularly regarding energy consumption. While large language models (LLMs) and advanced AI systems initially require more energy, AI also drives greater efficiency across machines and production processes, reducing overall energy usage. By applying AI in the right way, manufacturers can improve productivity and minimize energy waste, supporting both operational goals and sustainability initiatives.

In the evolving energy landscape, world-leading tech companies are embracing decarbonization, empowering data centers to transition from energy consumers to proactive prosumers—supporting both energy demand and supply. With data centers serving as the backbone of AI and digital transformation, innovative solutions like EcoStruxure Data Center Solutions and Galaxy VL UPS play a crucial role in balancing energy consumption and sustainability.

Currently, an estimated 60% of the energy we produce is lost or wasted due to inefficient systems, manual processes, and human error. However, in a more digital, automated, and AI-driven world, this energy loss can be drastically reduced. With advanced data centers and AI working together, manufacturers can unlock new levels of efficiency, helping to power the AI ecosystem while supporting long-term sustainability goals.

Build a reliable supply chain

Your supply chain needs to be as reliable as your vehicles. Taking a page from industry leaders, consider bringing critical components like battery production in-house. Strategic partnerships with tech firms and battery manufacturers can power your innovation while localizing production helps you dodge international supply chain issues.

A factory line of ev (electronic vehicles)

Focus on sustainability

A highly efficient UPS system helps minimize your energy footprint. Pair that with comprehensive carbon tracking across your value chain, and you’ll have a sustainability strategy that performs. Schneider Electric’s Galaxy VL Modular UPS reduces carbon footprints and the Prefabricated Modular Data Centers offer fast, energy-efficient IT infrastructure. Complementing these solutions, Schneider Electric’s products ensure resource efficiency, verified environmental footprints, and minimal use of hazardous materials throughout their lifecycle.

Boost your R&D investments

In the EV race, standing still means falling behind. EV trends show that smart manufacturers are investing a good portion of their revenue in R&D, particularly battery innovation. Partnering with the right players is also critical. Schneider Electric’s Prefabricated Modular Data Centers provide fast, scalable, and energy-efficient solutions that can be deployed quickly to support research and development facilities. Their flexibility allows manufacturers to scale infrastructure as R&D needs evolve, accelerating innovation while maintaining operational efficiency​.

Partnering with the right technology providers and leveraging advanced data center solutions can help you stay at the forefront of EV innovation, ensuring your R&D investments drive long-term success

Design for what’s next

The only constant in EV manufacturing is change. Your production systems need to handle multiple platforms on a single line, switching between models as easily as changing lanes. Modular flex framing lets you adapt your body shop operations on the fly, keeping you nimble no matter what the market throws your way.

With these strategies in your toolkit, you’ll be equipped to tackle the challenges ahead and turn them into opportunities.

Preparing for the future of electric vehicles

The EV revolution isn’t slowing down, and neither can your manufacturing. Partnering with experts who understand both the complexity of EV manufacturing and the power of digital innovation can help you evolve your operations. With our end-to-end portfolio of EV products and services, including connected architectures, digitization services, eMobility solutions, sustainability tracking, UPS (and the software to manage it), electrical system monitoring and consultation, and more, we are your complete EV partner for building sustainable growth and enhancing the quality of your production to stay on top of increasing EV trends and demands.

Get more insights in our eBook “Electric Vehicle Growth Drives Need for Smarter Manufacturing Systems” or call us at 1 (877) 800-4272 to get started.

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