Electric Vehicles (EVs) are battery-operated vehicles used as an alternative to traditional gasoline vehicles. The environmental benefits and impacts of using EVs are expected to surge the production and sales of these vehicles in the coming years. Also, the rising technological advancement in the automobile sector is anticipated to bolster EV production. These vehicles are developed using advanced manufacturing techniques and require a skilled workforce to work on technological detailing.
According to Fortune Business Insights™, the electric vehicle market was valued at USD 246.70 billion in 2020 and is anticipated to grow from USD 287.36 billion in 2021 to USD 1,318.22 billion by 2028 at a CAGR of 24.3% during the forecast period.
AutomotiveCompanies to Recover from the Loss Post Pandemic
The outbreak of the COVID-19 pandemic created a huge impact on various industries due to the closure of national borders and restricted import/export policies. Also, the halted manufacturing and production units during the initial lockdown phase affected the business performance of several companies operating in the automobile sector. However, the companies are expected to witness post-pandemic growth as lockdowns were lifted in most countries. The leading automotive companies started planning various strategies to recover from the loss faced during the pandemic. This included increasing production rates and developing various promotional strategies to improve their sales rate.
10 Reasons for Rising Adoption of EVs:
1. Rising Public Awareness
The public was quite unaware of the benefits of using electric vehicles and their properties. Increasing public awareness allows automotive companies to increase their sales rate. This can be achieved by planning promotional activities and increasing customer engagement to witness growth in the coming years.
2. Travel Range
Engineers are continuously working on enhancing the distance covered per charge of an EV. Drivers and passengers show interest in adopting vehicles that cover the maximum distance within a specified time.
3. Charging Speed
The speed at which batteries are charged up to 100% is a major factor considered by customers. The companies are working on developing fast chargers equipped with high-power charging to charge the battery in the minimum possible time. This ensures efficiency and feasibility for saving time.
Customers tend to compare the costs of EVs with other traditional vehicles. However, the benefits of using EV are one of the major concerns, which focuses on the maintenance and operating costs. The companies focus on providing several policies to attract customers and maintain the servicing costs.
5. Government Incentives
The customers can now claim government incentives while purchasing the EVs and avail numerous benefits associated with the policies. Also, the manufacturers can claim government incentives for producing and extending the EVs to support environmental policies.
6. Charging Infrastructure
The automotive companies work on developing charging infrastructure globally to enhance customer services. The availability of charging stations at desired distances is a major factor in attracting customers to adopt EVs. Easy availability and efficiency bolster the rising adoption of these vehicles.
7. Green Energy
The center for sustainable energy emphasizes that electric vehicles are a better alternative and more effective for green energy and prevention of environmental pollution. The control of pollution is a significant factor for the manufacturers to promote EVs and propel growth.
8. Grid Development
The power grid is directly connected with the manufacturing of EVs with the development of smart charging stations and the aim of producing cleaner energy. Emerging technological development in the automobile sector encourages companies to ensure grid development.
9. Fuel Prices
Rising fuel prices globally is a major factor in increasing the adoption of EVs. Also, the fluctuation in servicing and maintenance costs of fuel-based vehicles is anticipated to bolster EV sales.
10. Global Economy
Emerging development in the global economy due to the changing business circumstances is expected to attract global customers and increase electric vehicle adoption.
Top Companies Listed by Fortune Business Insights™:
- BMW Group (Germany)
- BYD Company Ltd. (China)
- Daimler AG (Germany)
- Ford Motor Company (U.S.)
- General Motors Company (U.S.)
- Nissan Motor Corporation (Japan)
- Tesla, Inc. (U.S.)
- Toyota Motor Corporation (Japan)
- Volkswagen AG (Germany)
- Groupe Renault (France)
Rising Adoption of Fuel-efficient Vehicles
Electric vehicles are highly adopted globally due to the numerous benefits mentioned above. Also, the automotive companies plan to increase electric vehicles’ production and sales rate to attract global customers and enhance their business performance. Rising investment from governments and several incentive policies encourage companies to develop and design new models considering emission policies imposed by the governments.