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Things that are allowing traditional automakers to join the electric vehicle space

Many traditional carmakers are joining the electric vehicles space. There are several factors that are making this possible. First is the recent innovation in battery technology, which has restrained electric vehicles utility for many years, leading to low battery capacity, limited driving range, high costs, and extended charging period.

Electric vehicle batteries are now manufactured at very low cost due to the advancement in lithium-ion batteries. The batteries also charge at a super-fast speed and with a higher capacity, allowing vehicles to extend their ranges further.

Regulatory pressure is another factor that is driving electric vehicle development. Nations such as France, the United Kingdom, and Norway have revealed that they will ban the sale of petroleum and diesel-based automobiles by 2040. Some cities have already inflicted policies to exclude or limit the sale of internal combustion engine vehicles. Madrid has restricted old gas cars from accessing its city centre since last year in December.

Change in customers’ perception has also led to many embracing electric vehicles. It is anticipated that in the near future there will be mass adoption of EVs. Electric vehicles have improved in performance and are now more affordable compared to there before. It is expected that the EVs’ price will fall to be equivalent to that of conventional vehicles.

Another factor that is accelerating the sale of EVs is subsidies provision. Last year in Europe, the sale of electric vehicles hit 500000 in the Q1, outdoing EVs’ sales in China for the first time since 2015. The immense Europe growth was steered by governments’ heavy subsidies in their attempt to achieve EU carbon neutral by 2050. Germany offers a grant of £9480 for the EVs, while France offers £12000 subsidies for electric vehicles. These subsidies have provided significant growth in the EV industry as many people are able to afford electric cars as they aspire to attain their carbon dioxide emissions goals. Failure to meet these goals by the automakers attracts hefty fines.

In New Jersey, more than 1800 applications have been submitted for EV rebate. The rebates are given amounts to $5000, and so far, over 1000 applications have been approved. EV sales tax exemption is also contributing to the rapid surge in the adoption of the electric vehicle. However, the EV sale is increasing even without the subsidies. It is expected to expand more due to governments’ regulations in the fight against climate change.

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