The adoption of EVs (electric vehicles) across the globe is rapidly gaining steam. This exponential growth of electric vehicles is attributed to evolving consumer interests, national regulations, policies, and environmental concerns.
This will see an increase in electric vehicles taking not just to the roads, but to the seas and skies too.
According to a BloombergNEF study, there are almost 20 million passenger electric vehicles on the road today with electrification spread to other segments of road transportation. There are also more than 280 million electric mopeds, scooters, motorcycles, and three-wheelers across the globe with over 1.3 million commercial electric vehicles- buses, delivery vans, and trucks.
By 2040, industry analysts estimate that electric car sales will surpass ICE (internal combustion engine) vehicles.
But before we delve deeper, let’s look at what electric vehicles are exactly.
Simply put, electric vehicles are vehicles that function without an ICE and instead use a battery-operated mechanism. EVs are electricity powered through a battery source that requires recharging and have the capabilities to cover a great distance in a single charge.
Electric vehicles are proliferating all thanks to the numerous benefits it boasts- from sustainability contributions to cost savings.
There are various types of electric vehicles that vary based on their dependency on electricity and can be categorized as follows:
Now that we understand what electric vehicles are, let’s look at the key factors that are giving rise to the growth of EVs.
Key factors of the growth of electric vehicles
1. Cost-saving in the long run
With the price of oil continuing to hike, it is a no-brainer as to why EVs offer a cost-saving alternative. Resources are soon to deplete and oil prices will only continue an upward momentum.
EVs on the other hand use lesser to no fuel with batteries being able to charge even with a home charging unit at a fraction of the cost. The electric motors used in EVs also mean fewer parts than fuel-based engines, leading to less wear and tear as well as servicing and repairs.
2. Government regulations and policies
Around the globe, governments are providing policy-driven support and regulations for both electric vehicle production and purchasing. While their aim is to phase out ICE vehicles, government bodies are focused on decreasing carbon emissions for a greener future.
Through heavy taxes and sales policies, governments are forcing more car brands to produce EVs by monitoring their production and sales.
3. Eco-friendly choice
EVs helps reduce harmful air pollution as the world continues to fight global warming and climate change. EVs offer an ecological option with lesser exhaustion of harmful emissions that will improve air quality. The reliance on electricity to charge batteries instead of using fossil fuels like petrol or diesel also helps with preserving current resources.
4. Evolving consumer preferences
Consumer attitudes today are shifting to ones that are increasingly conscious and emphasize sustainability practices to minimize their carbon footprint. Fueled by changing patterns of mobility, EVs are becoming increasingly affordable.
EVs also provide a more zen ride with smoother acceleration and deceleration and eliminates gear shifting and complicated controls entirely. The convenience of public charging stations and central locations further entices consumers to purchase EVs.
5. Taxes and financial benefits
Owing to its multifold benefits for the environment, various governments and automotive companies are promoting EVs by developing favorable forms of incentives. EV purchases can avail themselves of certain taxes and even receive additional monetary benefits such as discounts on the vehicles themselves as well as taxes.
6. Advancement in technology
Today, EVs come equipped with touch screen panels and interactive user interfaces that offer a friendlier experience. Car brands are going above and beyond with technology by offering auto-pilot capabilities, voice command, self-parking features, and in-vehicle infotainment (IVI).
Car brands are also working on driver-vehicle interaction so that vehicles communicate directly with service centers for servicing, maintenance, and repairs.
Having learned about the varied benefits and remarkable contributions, do you think the future of the automotive market is electric?
The electric vehicle boom
With a lot of evidence to support it, it is safe to say that electric vehicles are going to drastically disrupt the automotive market in no time- in fact, it has already begun. Major global brands in the automotive industry have already started pouring heavy investments into electrification.
Annata- Supporting automotive brands in the acceleration of electric vehicles
Though electric vehicles are a major plus and possess many benefits, it simultaneously poses a detrimental threat to automotive brands that are slow to change.
The EV experience will undoubtedly be amiss without digital platforms. Business solutions with online and mobile tools to capture information created by the electric vehicle which will then be gathered, processed, and monitored can over time help automotive brands use this information to make informed decisions.
Existing legacy systems are unable to support businesses in their push for vehicle electrification in a scalable and cost-effective manner. A workaround for this is to have a partner with strong expertise and experience to circumvent high-risk issues.
From enhancing operational efficiencies to real-time fleet management, Annata offers a comprehensive cloud-based suite of solutions to support both EV businesses as well as automotive businesses that are looking to launch EV brands into their portfolio and unlock new EV business models and revenue streams.
Annata does this by intensifying business processes through cloud-enabling digitization, automation, and advanced analytics with the use of artificial intelligence, IoT technologies, and machine learning.
As a global independent service provider that leverages the technological power of Microsoft Dynamics 365, Annata provides intuitive business solutions designed specifically for businesses in the automotive industry.
Connect with us to find out how Annata can support your automotive business along your vehicle electrification journey.
More information on Annata’s solutions is available here.
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