Economikly

The Upcoming Junction: Electric Cars

INTRODUCTION

For a very long time, the world has been dreaming about electric cars. It has been a distant dream if we go back in the day, but now it’s the present. Elon Musk has played a very significant role in this dream come true culture. But even now, electric cars are a scarce product if we view them from a broader perspective.

POSSIBLE DISCOURAGEMENT 

Even after many attempts of normalizing the use of such vehicles, There were 17000 electric cars on the roads of China back in 2010. Now the number has been proliferated to 7.2 million. But this number only sticks up to China since it’s the beehive of Electric cars. Apart from this rest, the data for entries globe sums up to 10 million vehicles, Which accounts for 2.6% of global car sales, That too central portion comprising of china and a significant proportion of Europe. But what about the rest of the world? What can possibly be the reason behind refraining the use of EVs? Well, to begin with, due to lack of mass manufacturing, the production is numbered. That’s the reason behind purchase is also limited since the cost isn’t feasible or viable for everyone.  For example, Nissan’s all-electric Leaf cost $28620, which is way higher than the regular petrol run cars costing $17255, in Spain. 

In addition, a limited number of electric charging stations around the world can also be a profound reason, according to International Energy Agency ( IEA ), that the existing number of chargers isn’t up to the mark. Furthermore, Battery fire risk is also a primary concern, especially in China, where 31% of the consumers complained about the same. 

WHY IS THE MARKET FOR EVs SO WIDE IN CERTAIN SET OF COUNTRIES?

The demand for EVs is leading in China, Japan, and South Korea. The consumption is pushed by the strong government back for Passenger EVs. Apart from these countries, the trail is followed by European countries like Germany, France, Netherlands, Sweden, and the UK. These countries have brought up a new set of environmental concerned regulations and encouraging incentives like subsidies and grants to encourage the consumption of EVs. Moreover, these are one of those developed sets of nations whose per-person income is sufficient enough to afford or to normalize the usage of EVs. 

The lack of EV charging stations again raises the concern since China comprises 37% of Charging stations around the world all by itself, followed by the USA with 24% of the same.

Other countries, as mentioned earlier, continue their stint in the market with single-digit percentages.

PROSPECTS 

France’s Renault and China’s Geely have decided to resume their joint venture on mass production of Hybrid petrol-electric Cars, which was scrapped last year.  The car models will be commenced with the Renault Brand. The cars will be inspired by Geely Link & Co, based in South Korea. This venture aims at selling Renault branded cars in China and South Korea till now, but like any other mega tech, global exposure is the ultimate agenda, especially in Southeast countries. The technology, assistance, and management will be rendered by Geely technologies whereas Renault will be looking after the selling strategy and advertising. Moreover, this auto-making tech duo is also under a constant ambition of introducing full-electric cars someday that too on a larger scale. 

REFERENCES 

https://www.bloomberg.com/hyperdrive

https://www.bloomberg.com/hyperdrivehttps://www.cnbc.com/2021/08/09/renault-geely-plan-to-jointly-develop-petrol-electric-hybrid-vehicles.html

https://www.iea.org/reports/global-ev-outlook-2020

https://www.weforum.org/agenda/2021/07/electric-cars-batteries-fossil-fuel

https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html

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