EVs Witnessing Escalation in Global Market Share; But Traditional Vehicle still a Popular Choice

Published  February 21, 2022   0
S Staff
Electric Vehicle-US

Electric cars companies feel EVs are already price-competitive and could help buyers in saving thousands on petrol and maintenance

According to some global experts' opinion, sales of battery backed vehicles sweeped all across Europe, China, and in the US in 2021, while the production and sales of cars powered by fossil fuels remained low. In fact, the demand for EVs in these regions escalated so much that car companies requested buyers to deposit in advance for booking. However, a range of new electric cars were sold successfully for the coming two years.

In the US, automobile companies have commenced selling the country’s most preferred vehicle, pickup trucks that are electric. It ultimately helped the EVs in gaining momentum and it is largely speculated that battery powered vehicles will enter into the mainstream segment this year itself. The escalating momentum of EVs are mostly due to the ongoing tailpipe emissions from the conventional vehicles degrading the environment. EVs still contribute a lesser value in the market, but interestingly, sales of new electric cars increased from 2.5 percent in 2019 to 9 percent in 2021.

The International Energy Agency has clearly stated that internal combustion engine vehicles are losing popularity every year.  Scott Keogh, CEO of Volkswagen Group of America, told the New York Times, "It’s one of the biggest industrial transformations probably in the history of capitalism. The investments are massive, and the mission is massive." There is a serious glitch in the American economy as well amid the popularity of EVs because several additional parts, fuel injection systems, and makers of mufflers could be out of employment forever, leaving many people jobless. According to a survey, around 3 million people in the US make, sell and service cars and auto parts and the rise of EVs will need very few workers because there are very few components placed in these cars.

With times passing by, prices of ingredients such as cobalt, lithium, and nickel could be more costly than oil, which could decrease sales of EVs for a short term by uplifting the cost of these vehicles. Most interestingly, EVs are less popular among people who travel long distances on a daily basis or among people living in flats who cannot charge at home. There are only 50,000 public charging stations in the US, as per a report of the NYT. On the other hand, experiments are still ongoing to witness the environmental benefits of running electric cars. Now, replacing millions of traditional vehicles and trucks could take a longer time unless the government offers a colossal incentive package to buyers. 

The largest beneficiary in this regard is Tesla spearheaded by Elon Musk who sold around 1 million cars in 2021, which is an escalation of 90 percent in 2020. Many analysts have clearly mentioned that EVs will not be successful unless the prices become equal to conventional combustion engine cars, which is still a milestone. Currently, only rich people are opting for electric cars as they feel it is easier to refuel and maintain.