How far are we from the mass commercialization of electric vehicles?

Would diesel and petrol motor vehicles be prohibited?

Will governments globally compel automotive manufacturers to stop making fossil fuel cars in an agreed timeframe? How long until electric vehicles head towards mass commercialization?

Well, as per the research conducted (Ecotricity, 2020), over 11 billion tonnes of fossil fuel is being consumed worldwide annually. At an average rate of over 4 billion barrels, crude oil stocks are shrinking. So our established oil reserves will run out in just over 53 years if we carry on as we are.

Electric vehicles are taking over the market but would it be able to cover mass markets before fossil fuels become a depleted resource? Find out all the answers below.

Electric cars are providing new economic growth opportunities to nations

In China and India, the increasing middle-class population is causing production and demand for oil passenger vehicles to balloon (IEDC, 2020). By 2050, 1,5 billion vehicles will be on the track, compared with 750 million in 2010. This kind of growth is both a challenge and an incentive to take advantage of emerging automobile technology. In the end, it helps economies to profit from next-gen technology innovations. Governments need to find alternative sources of transport as oil becomes a scarce resource. Electric Vehicles isn't just an intelligent investment, it's an irreversible investment, as others might say. Thus, by enhancing the quality of living, decreasing resources consumed, and reducing dependency on imported oil, electric cars provide new economic growth opportunities.

The demand for electric vehicles is predicted to hit 26,951,318 by 2030. This is a CAGR (Compound annual growth rate) of 21.1% if compared with 3,269,671 sold in 2019 (Electric Market, 2020). With the continued growth in the automobile industry, the electric vehicle market is quickly evolving.

Policy enhancements from governments, assistance in the form of car-pool memberships, and incentives for new Electic Cars in the form of discounts, loans, rebates on taxes, and other non-financial incentives can expedite industry growth. Expanding the supply of recharge infrastructure and foster constructive engagement by automobile operators will also be of immense benefit and likely improve the overall demand for electric vehicles.

Furthermore, numerous policymakers' rising sensitivity to a sustainable world has raised the demand for non-emission vehicles. To minimize emissions, developed countries like the US, Germany and the United Kingdom aggressively encourage the use of electric cars, which has led to an increase in electric car purchases.

Worldwide players like Tesla, BYD (China), BMW (Germany), VW (Germany), and Nissan, Japan, lead the electric automobile industry. These companies have built new technologies, introduced growth plans, and have entered into alliances, partnerships, mergers, and acquisitions in order to expand momentum in this growth market for electric cars.

As per the Hindustan Times (HT auto, 2020) Tesla's share of the world Electric Vehicle distribution market is 18 percent. Yet competitors hope to narrow this down. Although electric vehicles are currently available in certain countries, it is expected that major EV companies will service new markets by the end of 2021. Industry analysts think that the huge emphasis on electrical technologies by auto manufacturers could lead to a major product offensive in key and new markets in the coming years. And though the war could be to make the EVs more economical. An element of market awareness could benefit the conventional automobile giants in great ways, something that is not completely up to OEMs (Original Equipment Manufacturer), but also conditional on fiscal frameworks. And although the lead of Tesla is significant and well-founded, the global signs are very evident that carmakers are gearing up to close the distance as it stands today.

It is expected that the future of EVs will be bright (Electric Market, 2020) and that the battery costs, one of the most important components in an EV, will decrease dramatically as EVs will become more affordable. Average sized vehicle class has minimal features, with features such as infotainment, instrument clusters, and other pricey features non-existent. The reason being companies like BYD, Clever, and Great Wall Motors manufacture relatively cheaper cars. An alliance with the BMW Group for the manufacture of electric mining vehicles was revealed in July 2018 in China. The demand for commercial vehicles is expected to rise fastest. The development of the electric commercial segment has been contributing to the growing adoption of electric buses in particular in China and India. Several countries are investing in new mass transit and public transportation systems, replacing the fossil fuel fleet with electrical buses. Moreover, the rise in e-commerce, logistics, and ride-sharing would fuel growth during the projected timeframe.

The introduction of PEVs (Pure Electric Vehicle) needs customers, like all emerging technology, to transition into the comparatively unknown and explore actual technology. Purchasing a PEV involves not only the adaptation to a new product with new characteristics but also the adaptation to modern facilities and way of living.

One of the major aspects (IEDC, 2020) regarding market understanding is commonly called uncertainty about ranges. Anxiety about the range implies power loss without the option to recharge the batteries of a PEV. Many gas cars can travel between fueling more than 300 miles while the vast majority of electric vehicles can travel 100-200 miles. Further, the lower the power of air conditioning and radio in addition to the basic concern regarding the range, PEVs also face several other insecurities that are similar to the uptake of other new technologies. Is technology trustworthy? Are our local utility providers aware of the remedy? Have all the security challenges been fully resolved? In the next few years, will the technology become any cheaper? However, if the experience is a relative reference, such concerns would become less important as consumers become better acquainted with PEVs.

To conclude, by examining the present automobile industry scenario, which is threatened with the depletion of fossil fuel reserves, along with rising fuel costs, carbon pollution of fuels, and their devastating environmental consequences, presents electric cars as a great alternative. In our quest to safeguard the environment, switching to electric cars or PEVs is definitely a step in the right direction. Electric vehicles will take a long time to be preferred by the general population, but in the near future, the opportunity for mass promotion is high in public transport. This also allows for a positive economic impact. Electric cars, as all transformational emerging technologies, present many powerful obstacles and endless possibilities for economic growth. While the electric car industry is still relatively early, it is ready for business and to reshape cities around the world.

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