Electric vehicle sales increased by 43% globally in 2020, and in some regions, such as Norway and the Netherlands, they now outweigh gasoline and diesel vehicles. Electric vehicle sales in Europe exceeded half a million units in 2020, while the incoming Biden government in the United States is contemplating subsidies to get millions of electric vehicles. Finally, after a long period of inaction, everything indicates that we have reached a tipping point, mass adoption will begin in 2021, and that internal combustion engine (ICE) will be phased out.
The development of the electric car as a market trend is due to five factors:
Technology: The essential threshold for the acceptance of electric vehicles as a widespread automotive technology, which consisted of enhanced and cheaper batteries priced below $100 for every kilowatt-hour, has lately been surpassed. Furthermore, battery technology is continuously improving, which means we may eventually be able to travel hundreds of miles on a 5-minute charge with virtually no degradation over time.
Emissions regulations: The European Union’s enforcement of emissions limitations for vehicle manufacturers based on the overall number of vehicles sold has prompted traditional car firms to move to electric cars as the only way to escape large fines. More and more corporations are seeing their engine facilities as assets that require to be sold quickly if pollution objectives are to be met. In addition, numerous governments have accelerated the phase-out of diesel and petrol vehicles. In the United Kingdom, news that the phase-out deadline has been pushed out to 2030 has sparked a 500 percent rise in interest in electric vehicles.
The environment: mounting proof that the oil industry’s lies were false: electric cars are cleaner, regardless of where the electricity they use comes from.
Cost: While electric vehicles are still more expensive than traditional vehicles, we are getting closer to the parity, and there is growing evidence that operating an electric vehicle is far less expensive in terms of total costs, thanks to the price difference between diesel or gasoline and electricity, as well as low maintenance. This shift, in reality, puts the automotive industry’s old distribution network in jeopardy: one out of every six Cadillac dealers elected to close instead of following the brand’s advice and start selling electric vehicles. Simply said, when maintenance is removed from the equation, there isn’t much left for dealers.