EVs had a fantastic year in 2020. For the first time ever, they accounted for more than 4% of global new car sales, and they have shown robust year-over-year growth.
While the development thus far has been excellent, there are a number of reasons that will help EVs expand even faster. EVs are destined to replace gas automobiles and become the future of personal mobility sooner or later (most likely sooner).
Growth of Charging Infrastructure
One of the biggest barriers to EV adoption is a lack of charging infrastructure: road trips were often problematic, and EV ownership would be tough if you couldn’t charge at home. Things are, however, changing. The number of public charging stations is rapidly increasing.
The majority of these charging stations are slow chargers, which are generally found in stores, restaurants, and other public locations where individuals may charge while going about their daily routines.
Fast chargers, for example, provide power at a considerably faster pace. These stations are generally located near highways and are used for long-distance charging. While it varies per charger and vehicle, some of these chargers may fill a battery to around 80% capacity in about 20 minutes. Both types of chargers are critical for the future of electric vehicles.
Click here to learn more about the US electric vehicle charging infrastructure market size!
Increases in Range
When electric vehicles initially came out, their ranges were quite restricted. The most popular of the early versions, the Nissan Leaf, had an EPA-rated range of only 73 miles, which was hardly enough to get out of town, much alone plan a road trip.
Ranges are now much more stunning. According to a recent AutoList poll, just over half of consumers would be satisfied with a 300-mile range. The Tesla Model 3 is now the best-selling electric vehicle, with a basic range of 263 miles and a long-range range of 353 miles. Some higher-end automobiles due to arrive in the near future should have a range of over 500 miles. For the vast majority of people, electric vehicles now have more than adequate range. Most folks who feel they require more than 300 miles will realize that they can easily get by with less when charging infrastructure improves. With each passing day, range becomes less of a barrier to EV adoption.
Decreases in Battery Costs
The high initial cost of electric vehicles is arguably the single most critical factor in boosting EV adoption at this time. The most prevalent worry expressed by potential EV customers in a McKinsey & Company poll was high purchase price (25 percent), followed by range (24 percent), and charging availability (14 percent) (18 percent ).
EVs are still expensive compared to gas-powered vehicles, but there is reason to be optimistic. According to BNEF, the price of batteries has dropped by 89 percent in the previous ten years and is continuing to decline. According to BNEF, battery costs will be close to $100 per kWh by 2023, a point at which EVs will be cost competitive with gas automobiles.
To this point, EV manufacturers have focused their cost-cutting efforts on boosting range. Automakers should start producing more inexpensive cars with ranges of 250–300 miles now that the range of EVs has reached a tipping point in terms of acceptability. UBS analysts studied seven battery cells and concluded that EVs will approach price parity with conventional vehicles by 2024, which is only a few years away.
EVs, at their foundation, require less upkeep and repairs. According to Consumer Reports, EVs will save a typical owner $4,600 over the life of the vehicle as compared to a gas car. This not only saves money, but also saves the owner time.
EVs have an almost insurmountable advantage over regular gas automobiles in terms of maintenance and repairs.
Regulation is being tightened
In several nations, tighter regulations are also helping to encourage electric vehicles. The European Union has enacted tighter fuel requirements, requiring automakers to sell more electric vehicles in order to maintain a low average fuel economy. EVs accounted for more than 10% of car sales in Europe as of November 2020, with all-electric vehicles accounting for more than 5%.
Climate change is still a worldwide problem, and road traffic continues to be a major source of emissions. EVs will undoubtedly benefit from tighter fuel regulations, carbon pricing, and direct subsidies, regardless of whether governments adopt stricter fuel requirements, carbon prices, or direct subsidies.
To summarize, there is a slew of surprising areas where electric vehicles outperform traditional automobiles. The e-mobility industry and its investments are rapidly expanding.
We discussed charging infrastructure, range, battery cost, and maintenance costs in broad terms. To contribute to this ecosystem and enhance the power of electricity, Bluedot has designed an EV-only reward program. You can find charging stations, collect Oxygen Points as you travel and charge, and make the most out of the process by spending your points at your favorite stores.