Once marginalized as boxy or egg-shaped transports that lacked power and were rife with defects, the electric car may be on the road to more widespread acceptance. Last year, an unprecedented 2.1 million electric vehicles were sold, adding to the 5.1 million already in use.
An Unprecedented Push
Tesla’s entry into the electric vehicle (EV) market saw its stock hitting new heights. Ford, General Motors, and other high-profile automobile manufacturers are investing tens of billions of dollars to launch an unprecedented level of manufacturing. Volkswagen has set a goal to build one million EVs by 2023, an increase of 70,000 in 2019. Their long-term plan is to have 22 million of these cars in the market by 2030.
Since their introduction in the 1970s, electric cars were considered “niche.” Manufacturing efforts were less aggressive as smaller inventories would roll out.
The new wave of EVs will reside in the luxury end of the automotive market. Simply put, the manufacturing costs presents challenges in profitability. Manufacturers are confident that, over what will likely be a more extended period, EVs could achieve mainstream appeal.
Obstacles still exist beyond the price tag. EVs can only travel so far before needing a recharge, which takes a considerable amount of time. Current low fuel prices will also make the vehicles a tough sell.
What will make a difference over time is price parity with conventional cars. Interest from businesses, fleets and government entities looking to add to their fleet of commercial vehicles could also push EVs more int the mainstream.
What will make a difference over time is price parity with conventional cars. Interest from businesses, fleets and government entities looking to add to their fleet of commercial vehicles could also push EVs more into the mainstream.
What was once a road less traveled, increased EV manufacturing may change the future of an entire industry.