Over the past few years, the automotive industry has been transitioning fairly rapidly toward electric vehicles, powered (at least in part) by lithium-ion batteries. This drive has been accelerated
by the government’s announced intention to ban the sale of new petrol and diesel vehicles in 2030.
But very recently, the situation has change. Rishi Sunak’s government has pushed back the year of the ban to 2035,and sales of electric vehicles in the here and now have slumped as a result.
Market Trends – The Rise of Electric Vehicles
So, how might the market for electric vehicles shift over the course of what remains of the decade?
Consumer demand
It’s fair to assume that, as vehicles become more sophisticated and charging infrastructure becomes more reliable, we’ll see more widespread adoption of battery electric vehicles.
Disruptive trailblazing firms like Tesla have helped to shape an agenda that is now being followed by established names like BMW and Volkswagen.
Those looking for a new vehicle from these manufacturers might offset the risk of adoption with the help of the right insurance.
BMW gap insurance, for example, can help to remove the risk of falling into negative equity.
Legislative Landscape
The role that governments and other regulatory bodies play in shaping incentives should also not be overlooked. Proposed bans on the internal combustion engine might naturally push consumers
away from them, but there are also more subtle levers, like road tax rates based on emissions, that might serve a similar purpose.
Technological Advancements: EVs Leading the Charge
There are two major kinds of advancement to consider.
The first concerns the batteries themselves. The more efficient they become, the further they’ll be able to travel on a single charge, and the quicker they’ll be able to recharge.
As the industry scales, the production of batteries might also be made more affordable.
Another important development concerns charging infrastructure. When we understand that there’s a place available to charge, we’ll feel more confident in the vehicle’s we’re
driving. Thus, a major pillar of government strategy for this transition is getting the charging infrastructure in place.
Environmental Imperative: Navigating Climate Pressures
There are also good environmental reasons to move toward electric vehicles. Intergovernmental organisations are helping everyone to move in the same direction when it comes to slashing emissions – and this is causing automakers to priotise the development of electric vehicles.
In a corporate world that’s beholden to sustainability and ESG concerns, green credentials can help a business to attract new shareholders, and keep the existing ones. Thus, there’s
a financial incentive to develop greener vehicles more quickly.
Challenges and Considerations: Roadblocks to Full EV Adoption
So, what might halt the advance of the electric car?
The costs involved are not inconsiderable. At present, these vehicles are manufactured at small scale. The technology is unproven and immature, which means that vast resources must be poured
into research and development.
There’s also the aforementioned charging infrastructure, which is not prepared for a sudden boom in demand. Only once these problems are overcome can we expect to see the BEV become the norm.
