Case Study | 25 July 2025
From Crisis to Dominance: How an Automotive Giant Overcame EV Supply Chain Disruptions
Posted by : Sanya Mehra
The sudden alteration toward sustainable flexibility has elevated electric vehicles (EVs) to a crucial idea for automotive manufacturers. EVs not only constitute a lucrative prospect, owing to an increase in government incentives and environmental concerns, but they are also subject to effective risks in demand forecasting, raw material procurement, and supply chain administration. In this regard, a U.S.-based automotive organization that shifted to EV production in 2021 experienced critical imbalances in supply and demand, resulting in delayed growth. In this case, Research Nester Private Ltd. interfered with data-based initiatives, which enabled the organization to accurately demand forecasts, secure raw materials, and optimize the overall production. By the end of 2034, the organization is expected to gain a 52% market share in the U.S. EV industry through advanced supply chain solutions.
An overview:
- In 2021, a notable U.S.-based automotive organization, conventionally recognized for its ignition engine vehicles, effectively advanced into the creation of electric vehicles. This decision was attributed to federal tax incentives, strict emission regulations, and customer demand that promoted EV integration.
- The organization unveiled its first-ever EV model in 2022 and observed an irresistible comeback with an increase in pre-orders of over 50,250 units in 90 days. But the primary achievement was short-term since unstable lithium expenses, semiconductor shortages, and supply chain blockages disturbed the production process.
- The organization, during mid-2023, experienced a 45% in achieving delivery goals, resulting in a decline in investor trust and consumer dissatisfaction.
- The organization undervalued severe challenges, including a surge in administrative reforms, increased technical innovation that demands regular project modifications, and lithium supply.
- In addition, rivalries with well-known supply chain systems achieved a huge market share, leaving the organization behind to fight for profitability maintenance. By 2025, the growth rate reduced to 16% from 50% in 2024, thereby pressurizing leadership to re-examine its strategy.
- Identifying the demand for professional guidance, the organization sought to Research Nester in March 2025 to overhaul the demand for forecasting models and the supply chain.
- Research Nester’s analytical team directed a detailed examination of market trends by detecting barriers in customer behavior analysis, inventory management, and procurement initiatives.
- The consulting firm put forth a multi-faceted strategy by combining vertical implementation, tactical supply partnerships, and AI-powered demand forecasting in battery manufacturing.
- By the end of 2024, the organization commenced with rearranging its overall operations and focused on long-lasting sustainability in comparison to short-term sales growth.
The Story
The U.S.-based automotive organization, established in 1994, has been a dominating force in the conventional electric vehicle market, well-known for its combustion-specific engine sedans and trucks. However, based on international climatic policies and a sudden shift in customers’ desire for sustainability, the organization was forced to adopt a tactical approach to EVs in 2023. While the preliminary reception was robust, with the first-ever EV model achieving more than 50,500 pre-orders, the shift has proved to be extremely challenging rather than being anticipated. Besides, the worldwide crisis in chips deteriorated due to disruptions in supply chain systems that eventually resulted in production breakdown. In addition, a 180-day delay in semiconductor deliveries pressured the organization to reduce its 2025 production targets by 47%, ultimately leading to irrecoverable orders and unfulfilled consumers.
Furthermore, lithium expenses upsurged by 35%, owing to an increase in the demand for EV batteries, which squeezed profitability. The organization’s dependence on third-party suppliers in governmentally unbalanced regions which further worsened procurement challenges, leading to fluctuations in expenditure. Besides, the lack of market intelligence resulted in overproducing less popular EV models, leading to USD 550 million in diverted inventory. Meanwhile, a rising demand for variants resulted in wait durations that increased by a year, thereby driving consumers towards rivalries.
Furthermore, by 2024, the EV unit was losing financial ability, with a huge loss that neared USD 1.3 billion. In addition, coming across an investor's disbelief and declining market share, the leadership effectively switched to Research Nester in 2024 to ensure a fundamental turnaround approach. Besides, the consulting firm’s intervention launched AI-based demand forecasting, explored battery recycling, and secured long-lasting lithium contracts to reduce expenses. By the beginning of 2025, these initiatives alleviated operations, thus laying the stage for an exclusive recovery, which will eventually position the organization as one of the leaders in the 2034 EV market.
Our Solution:
The analysts’ team of Research Nester recognized pivotal areas for enhancing and proposing the below initiatives:
- Effectively analyzing the exterior market forces through a wide-ranging PESTEL analysis to forecast administrative modifications and customer trends. For instance, the 2030 mandate initiated by the U.S. government for almost 60% of the EV implementation in the newest car sales that were considered for production scaling.
- Through the launch of a certified and pre-owned EV platform, the organization created an AI-driven application for selling and purchasing renovated EVs, thus catering to the increasing second-hand EV market, further anticipated to reach USD 85 billion by the end of 2034.
- The aspect of strengthening the supplier relationships by implementing blockchain to ensure transparency in supply tracking. With this, the organization grabbed long-lasting contracts with lithium miners in Chile and Australia, thereby diminishing uncertainties in procurement.
- To overcome further chip limitations, the company, through in-house semiconductor production, readily invested USD 2.5 billion in a regional domestic semiconductor plant, which is projected to be operational by the end of 2031, thereby constituting a stable supply for 65% of the EV production demand.
- The integration of machine learning models was installed to effectively analyze actual data, macroeconomic indicators, and social media strategies, thereby enhancing prediction demand accuracy by almost 40%.
Results
Before the intervention of Research Nester, the organization’s EV unit was suffering with an estimated 25% surge rate in 2023, which was less than 47% as of 2022. Besides, post the implementation stage of tactical policies, the following results were effectively observed. This included development revival, wherein the organization’s EV sales increased by 42%, further achieving 33% of the U.S. market. Besides, the aspect of vertical integration diminished battery manufacturing expenses by 26%, thereby enhancing profitability. In addition, the previously owned EV platform is expected to subsidize 18% of the overall revenue by 2033. Finally, the analytical team projected a 60% market share by the end of 2034, wherein yearly revenue is propelled to increase by USD 37 billion.
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