Electric vehicles have been around for over a century, but they haven’t always been as popular as they are now. One of the reasons for the recent rapid increase in the popularity of electric vehicles is its adoption of new technologies. These new technologies have helped it compete favourably with its ICE (internal combustion engine) vehicles.
Electric vehicles are already becoming a favourite among a lot of people due to their efficiency, performance, convenience, and easy maintenance. If precedence is anything to go by, the auto industry should expect more technological innovations that will improve the already magnificent standards of electric vehicles.
Effect of Electric Vehicles on the Auto Industry
Sales
The electric vehicle market is experiencing very massive growth as a lot of consumers have embraced the technology. This can easily be measured by the number of sales made. In 2021 alone, there were over 6.6 million electric vehicles sold. This is a great improvement from the 130,000 sold in 2012. The total revenue generated by EVs in the auto industry is estimated to reach $1.5 trillion by 2025.
Phasing out ICE Vehicles
Many governments in developed countries are rolling out plans to phase out the internal combustion engine cars. The US government in particular has an ambitious plan that will ensure that 50% of automobiles on the road by 2030 are EVs. To this end, the US government is building over 500,000 charging points around the country to show its seriousness. All this is done because EVs are more eco-friendly, and to reduce the carbon emission from cars to zero.
The move from the government and manufacturers to phase out ICE cars has prompted most automobile companies to commit to rolling out more electric cars in the near future. For example, Volkswagen projects that 50% of its lineup will be EVs by 2030. Toyota has laid out plans aimed at selling over 3.5 million electric cars every year before 2030. With these moves from both government and companies, the auto industry should be at least 40% electric by 2030.
Auto Spare Parts Market
The adoption of EVs by consumers has led to changes in the automobile industry’s value chain. Electric vehicles are relatively easier to build and contain only 20 moving parts, compared to over 2000 for ICE cars. This has resulted in a decrease in the demand for spare parts, taking most small spare parts companies out of business.
While the remaining companies have to compete for sales with more technologically inclined new generation spare parts companies.
Future Technological Trends on Electric Vehicles
Autonomous Driving
Most EV companies are already looking for ways to adopt autonomous driving into their cars. It is believed that this will help to reduce accidents on the road and make driving as exciting and easy as getting kasynainternetowe.org. This technology could also help to increase the patronage of EV companies.
Charging Technology
Unlike the ICE that needs carbon fuel, electric vehicles use batteries and need to be recharged often to work optimally. One of the trends to watch out for is the increase in charging infrastructures around the world like supercharging stations and the creation of portable charging systems.
Battery Alternatives
Most users and prospective buyers of EVs are expecting a change in this area as almost all EVs adopt the use of lithium-ion as the battery. Companies are lining up different new and cheaper options to replace lithium-ion batteries. This is a perfect area to see the effects of technology in enterprises.
Conclusion
Recent trends have shown that electric vehicles are taking over the auto industry as sales are increasing, and companies are gradually phasing out the ICE options. This is a welcome development as it will help reduce carbon emissions and give a better driving experience.
