Electric Cars:
The future of mobility
The electrification of road transport is revolutionizing the global transportation system. Rapid growth in EVs indicates that the global auto market would witness the dominance of EVs by early 2040s, which paves the way to enormous transformation. According to the recent forecast made by Investment Bank of UBS, Electric vehicles would contribute to about 20 percent of all the new cars sold globally by 2025. According to International Energy Agency, EVs would account about 330 million by 2040. In recent years, EVs has grown by more than 40% and in 2020 there were more than 10 million EVs. If the trend continues based on statistics there would be a growth of 60% by 2040 in the global car market.
China boasts as the largest EV market with 4.5 million vehicles and experiences huge competition by several brands in the Chinese EV industry to gain market dominance. The extensive competition in the Chinese EV industry has consequently led to reduction in the cost. Increased quality, technology advancements and reduced cost are the advantages out of the relentless competition which not only benefit customers but also in accelerating the transformation of the global energy sector. Infrastructure and electricity generation posed major challenges to the EV adoption but these issues are being resolved. Rising number of charging stations, improved battery performance and continuous innovation are the evidences of growing demand and acceptance gained by EV market. These developments along with the internal combustion engine vehicle bans in many parts of the world are creating additional pressure on the transportation system to electrify.
The global EV market continues to grow at a much faster momentum even during COVID 19 pandemic, where the global car market is experiencing a descend in the demand for cars. Developing and emerging countries has also started adopting EVs but are lagging much behind developed countries, which indicates that the developing countries would continue to experience a rise in oil demand. This effect would balance the decline of oil demand in the advanced economy.
Accelerating the shift to e-mobility would act as a green industrial policy which could support the post pandemic recovery of the economy, reduces over dependence on oil imports, strengthen energy security, reduce pollution, wildfires, deforestation, most importantly it is a step forward on the increased global warming and climatic changes. The extensive list of merits offered by the adoption is what makes EVs the future of mobility.
References
