The automobile industry is exhibiting a shift towards manufacturing electric vehicles (EVs). By the end of 2020, the market size for these vehicles was $24.03 billion.
The rising EV usage is due to the government’s directives that ensure the production of environmental-friendly cars. Unlike internal combustion fuel engine cars, EVs operate on electricity supplied by batteries.
The electric vehicle industry analysis shows that the growing EV market is due to the government’s provision of subsidies. Such funding reduces the upfront costs you incur when buying an EV.
Here are five things to know in the EV industry.
1. Lack of Enough Charging Infrastructure Affects EV Consumption
Although most people charge their electric cars at home, providing public EV charging outlets is crucial. Having such outlets at your disposal assures you of constant EV energy supply throughout the day.
The electric vehicle industry analysis shows that one charging port accommodates about 21 EVs. Since an EV has a lower driving range, the lack of enough charging outlets limits you from traveling long distances.
2. Government Incentives and Subsidies Improve Market Growth
Government incentives and fundings contribute to EV market growth. Discounts based on vehicle driving range and assurance of accessible charging stations can encourage you to buy EVs.
Other incentives the government is using to boost EV usage are:
- Reduced toll charges
- Low registration fees
- Free parking
Also, some states have working programs encouraging you to buy and use electric cars. Such plans include giving extra money to low-income families and exempting EV owners from sales and usage taxes.
3. EV Batteries Delay the Achievement of Sustainability
The raw materials for manufacturing EV batteries are cobalt, graphite, lithium, and manganese. These raw materials come from some developing countries with economic and political instability. Such volatilities may interfere with the constant supply of these materials.
Although electric car companies like cyngn.com can modify your car to be autonomous, battery sustainability is still an issue. These batteries still rely on materials that are subject to depletion. Besides, EV batteries have harmful lithium ions that may pollute the environment.
4. Government and Consumer Expenses on EV Rose in 2020
In 2020, people spent an extra 50% on EVs due to increased car models and reduced battery costs. With a wide variety of cars to choose from, it’s easy for you to go for options within your budget, leading to improved buying ability.
While focusing on achieving a zero-carbon emission level, governments spent more to boost EV sales. For example, the collective spending on tax deductions and incentives for direct purchases was about $14 billion in 2020.
5. EV Usage Improved During the Pandemic
After the outbreak of COVID-19, the usage of industrial vehicles rose. Most people began using EVs because they became aware of environmental issues. The creation of this consciousness pushes you to use EVs to protect the environment.
Staying at home changed people’s attitudes towards having a clean environment. With changed environmental concerns, consumers’ buying intentions also shifted towards EVs.
Understand Electric Vehicle Industry Analysis
EVs are ideal for protecting the environment from carbon emissions. The electric vehicle industry analysis shows the growth patterns of EV usage resulting from high government spending.
Such expenditures reduce the costs you incur when buying and using the EV. However, limited charging infrastructure and battery sustainability affect the EV industry.
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