From riding remote control cars on the playground to driving them on the streets. Gen Z witnessed a rapid growth of the automobile industry.
Electric cars are taking over the automobile industry. Global sales of EV increased by 39%, where the total sales to vehicles declined by 14% in FY 2021. While the sales in India have more than tripled to 1.18 lakhs in the first half of FY22.
Electric cars are the future.
The future of the automobile industry is Electric cars. Every graph of EV car sales is predicted to have a straight line upwards. From well-established manufacturers to new names, everyone is involved in the development of EV cars in some way or another.
The premium manufacturers like Jaguar, Volvo, General Motors are planning to sell only electric cars shortly. Ford says, by 2030, all the vehicles sold in Europe will be electric.
The rise of EVs will lower the import of oil by about 60$ Billion by 2030. Currently, India imports 82% of oil to fulfill the demand, and India’s GDP is expected to grow by 25% by 2022. The need for electric vehicles is evident.
It is cost-effective and; beneficial for the Indian economy, and less harmful for the dying environment.
All the utilities, services, and power companies have also responded positively to the emergence of EVs.
An international courier company, DHL has pledged to reach 70% clean operations for last-mile pickup and deliveries by 2025. DB Schenker, a German rail operator, wants to make its transport activities in European countries emission-free by 2030.
While the passenger cars are getting all the credit for the revolution of electric vehicles, the low-end electric vehicles used for delivery purposes and local transportation like electric buses have also impacted this revolution.
Global Electric car market size
2020 was a significant year for electric vehicles. Global electric car stock has increased by 41% (10 million units) in the first half of FY 22. Germany has 295 million new electric cars in Europe’s biggest markets, and the United Kingdom has reached 176 million electric cars.
Europe and China witnessed a sale of 1.4million EVs, the highest share of new registrations in 2020 and four times the US sales. The leading countries are Norway, Iceland, and Sweden, with 75%, 50%, and 30%.
Canalys, a research firm, forecasts the rising number of at least 30million EV cars to be sold in 2028. Moreover, nearly half of cars sold globally by 2030 will be electric vehicles.
Factors contributing to the growth of EV
The main factors contributing to the growth of EVs in the automobile industry:
The global index of air pollution has reached its peak. Amidst the deteriorating health of citizens, significant cities are adopting EVs. Evs are battery-operated cars and do not leave carbon footprints, and it makes no minimal sounds that curb the noise pollution.
Low operational costs
The cost of fuel is increasing worldwide, the operational costs of conventional vehicles have also certainly increased. People are choosing to invest in Electric cars rather than spending a high amount of money on operations, services, and fuel.
Campaigns of governments
The governments of various countries are inclined toward EV usage. In order to promote EVs, new tax relaxations and incentives are being given. It proves to be worthy of high standards and higher-cost EVs.
The rise of Electric vehicles is on a significant upward trajectory. The industry is still booming, and it has its downsides too.
Disadvantages of using EVs
EVs are still in the developing stage. The process of trial and error continues to happen. There are not many servicing stations available, and one has to go the extra mile for the operations.
The development of EVs is still in an ideal condition, and it is taking its time to be developed in real-life situations. There are problems such as no extended battery charging center or manufacturing center in India.
The country’s infrastructure affects the output of EVs, and the demographic conditions are yet to be taken into consideration.
However, other factors that affect consumer demands have led to this enormous rise. The experts and consumers can see the triumphs in the long run. The increase in EVs will continue to grow despite the degrading economic conditions.
Tesla, the world’s most valuable EV manufacturer, is now set to launch its cars in India in 2021. The launch of this tech giant will boost the sales and adoption of electric vehicles in India.