The rise of electric vehicles is igniting a new technological revolution. Not only it is inspiring scientists to come up with new innovations in the fields of fuel cell technology and electric mobility, but is also encouraging car makers and original equipment manufacturers (OEMs) to adopt at least one model of electric car in their product portfolio. These vehicles, whether fully electric, plug-in hybrid or battery-electric, are giving their internal combustion cousins a run for their money.
Research analysts of the auto industry are confident enough to forecast good numbers. ABI Research foresees a five-fold sales increase, with global revenue likely to reach $58 billion by 2021. What will fuel the growth? Greater global demand and the availability of all kinds of electric vehicles, says ABI Research. Research and Markets, on the other hand, predicts the market in US will regain stable growth after slumping in 2015. This will be made possible, with the launch of the Tesla Model 3 and the Chevrolet Bolt, among others. In Europe and China, government incentives and subsidies will get more electric vehicles on the road. Governments will even help construct and maintain electric charging stations. With regards to mass production, emphasis will be in China and India.
What could be the main drivers behind the increasing global sales of electric vehicles?
Growing awareness of renewable energy
Environment is one of the primary reasons to buy an electric car. This is the most viable choice of transportation for environmentally conscious car buyers. Everyone is eager to help reduce their share of the carbon footprint. Green is in, and even auto manufacturers and car owners know it.
Many national governments lend a helping hand to promote the widespread use of electric vehicles. They start by offering electric car owners tax exemptions, subsidies, and other forms of cash incentives. (Some city governments even provide them preferential parking permits and allow them to drive in taxi and bus lanes during rush hours.) Then, they subsidize the construction and maintenance of charging stations.
For most owners, electric cars promote total cost savings. People want to save money spent on gas and tax, and owning an electric car helps them cut dependence on fossil fuels and enjoy the monetary incentives that governments offer to owners of electric vehicles. Even for auto manufacturers, producing an electric vehicle is cheaper than producing its internal combustion counterpart.
For car buyers, innovations are plus points for purchase, and further upgrades will increase their desire to purchase another unit. For car makers, innovations do not only help them sell more cars, but also help bring overall production costs down.
Oil price hike
A rise in oil prices would force car owners to adopt electric vehicles. This is one of the factors behind the surge of electric vehicle sales in US. Only a decline in oil prices would bring sales down.
A promising future ahead for the market
What makes the electric car market upbeat over the next few years? Expanding markets, new technologies, and increasing sales, of course. The anticipation over upcoming models from Tesla, BMW, and Chevrolet are sustaining prospective buyers’ interest in the technology. They are even willing to wait for their desired car’s official launch which will take a few years from now. What makes the wait worth and exciting for them is that new electric vehicles will feature new specs, premium upgrades, and cool tech, which may include lightweight design, double battery capacity (for longer mileage), and autonomous drive. If car makers do deliver on their promise, this will be worth the wait – and the money.