Livingsights | The Next Decade for Electric Vehicles: Hit or Miss?

The Next Decade for Electric Vehicles: Hit or Miss?

The Next Decade for Electric Vehicles Hit or Miss
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Elon Musk, with 20 years of leadership in Tesla, has managed to jumpstart the Electric Vehicles (EVs) industry and turn it into a household name. Currently, there are over 400 manufacturers with 300 sitting in China alone. With a growing eagerness amongst nations and manufacturers to champion the next game-changer of the automobile industry and hopefully acquire a large market share, let us look at the key points regarding the future of EVs.

Sustainability of EVs: Hit

Manufacturers highlight the Unique Selling Proposition (USP) of EVs to be their sustainability. Rare earth metals such as copper and aluminum are key elements utilized in building electric vehicles. A regular car requires 6 times less material of metals as compared to EVs. Over-extraction of scarce resources raises potential manufacturing issues as well as pours the “eco-friendly” trope down the drain. On the other hand, the reduced dependency on petroleum for a more fuel-efficient alternative presents favorably to countries that are net exporters. Rapidly improving sustainability measures also ensure to keep unsustainable practices in check.

High Pricing but Low Maintenance: Hit

EVs require a high initial investment at the time of purchase. Two main components that contribute to this excessive cost are the battery and the implementation of a home charging system. However, over time, the cost of owning, operating, and maintaining an electric vehicle is lesser than that of a regular gas guzzler. As companies become more scalable, you can expect a decrease in price. Many governments are supporting the industry by providing heavy tax rebates which is another bonus for consumers and producers.

Fewer Model Choices: Miss

Amongst the vehicular population, two wheelers and four wheelers embody the largest chunk. Manufacturers target production based on the sellability of each by country. In countries like India, production of two-wheelers is favorable while in the US it is four-wheelers. Availability of different models and variants as per the needs and buying capacity of the consumer is of paramount importance for a company. As of now, buyers have a limited set of EV cars with fewer design choices available. These finite variants are competing against well-established petrol and diesel car models that have a tight grip on the heart of consumers. Manufacturers can look towards replicating designs which can generate a negative response. We can expect newer designs to come out as the industry grows but tried and tested models always play a heavy favorite.

Competition from Other Alternatives: Miss

EVs are not the only ones in the market trying to provide an alternative to petrol and diesel cars. Hydrogen cars are easier to refuel while offering a greater range and better fuel efficiency. Both have a high price point, but governments worldwide are focusing more on EVs. Another alternative is good ole public transportation. Urban areas with fully functioning public transportation systems generally record a lower vehicle count. As mass transit infrastructure provides improved connectivity over larger distances, customers may forgo purchasing new vehicles.

Conclusion: An Optimistic Hit

Heading towards a tech-based future, EVs will play a defining role in providing seamless connectivity in a sustainable manner. Goldman Sachs predicts, by 2035 we can expect half of all vehicle sales to be EVs. Your early investment in the market would accelerate that prediction while making every head turn in your direction as you drive/ride your swift vehicle. Alternatively, you can wait for more options and better prices to make your decision. Either way, electric vehicles are the present for your future.

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