When the first electric vehicles were introduced, high prices, low battery range, low speed and much lower environmental concerns resulted in the industry not taking off.
Fast forward to the present and we have an all-pervasive interest among automobile manufacturers, governments and consumers. Significant investments are being made in the sector including battery research.
The speedy growth in the uptake of EVs is the defining characteristic of the global electric mobility revolution. The global demand for electric vehicles is being fed by several factors, including the decreasing costs of batteries and the ever-improving performance of electric vehicles.
Global EV sales are going strong. Sales figures touched a record 10.5 million (BEVs & PHEVs combined) in 2022, up 55% from 2021. Trendwatchers predict global sales to break the previous year’s record this year, and expand their share of the overall car market to a commendable one-fifth!
As per Goldman Sachs Research, EV sales will touch about 73 million units in 2040. FYI, in 2020, this number was just 2 million. The share of electric cars in global car sales is expected to rise to an impressive 61% during this span.
Over the last couple of years, India’s petrol & diesel prices and pollution levels have been at an all-time high.
In addition to reducing emissions, electric vehicles also have the potential to help reduce our reliance on imported crude oil.
In developing countries like India & Indonesia, the hot segments of electric mobility are two & three-wheeler EVs, which outnumber electric cars by a mile. For instance, more than half of India’s three-wheeler registrations in 2022 were electric.
Some of the core reasons why electric vehicles are poised to make a lasting impact within the auto industry and completely change the face of transportation are:
Eco-Friendly: Driving an EV can help you reduce your carbon footprint because there is zero tailpipe emissions. You can reduce the environmental impact of charging your EV further by choosing renewable energy options.
Cost-Effective: The running cost of an EV is a fraction of what it costs for a petrol/diesel vehicle. It is also much cheaper than CNG vehicles.
Simple To Operate: With simple driving controls and quiet operation, an EV is easy to drive in general and in crowded areas.
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Cheaper To Maintain: The assembly of an EV is such that the user will end up spending much less on servicing & maintenance. This is mainly because EVs have fewer moving parts.
Convenience Of ‘Refueling’ At Home: EV owners can plug-in their EVs overnight or whenever they are not using them, and wake up to a fully-charged battery.
There is no doubt that electric vehicles are the future of mobility. However, EVs are not in the mainstream yet and need support from the government. Many countries are making policies to promote electric mobility and spread awareness about its benefits.
The cost of batteries is falling rapidly. This is due to advances in technology and economies of scale. The cost of batteries is expected to fall by 50% between 2020 and 2030. This will not only make EVs more efficient but also make them more affordable. Newer innovations will keep taking place in every aspect of EV development including battery chemistry, charging, motor, connectivity, etc.
Automobile lithium-ion battery demand went up 65% from 330 GWh in 2021 to 550 GWh in 2022. Battery cell price per kWh peaked in 2021 at $161 per kWh, but is expected to decline to approximately $80 per kWh by 2030.
Over the next few years, recycled Li-ion battery packs will begin to significantly affect the supply chain. Recycled battery cells will be cheaper and may represent 11% of all batteries by 2030.
EV charging infrastructure is also improving rapidly. This will build confidence in consumers to own an EV as their primary vehicle. To make an absolute difference, electric vehicles need to be powered by renewable energy sources. This will make EVs truly effective.
Conclusion:
Electric vehicle market share is expected to grow exponentially in the coming years. Almost every automobile manufacturer has announced plans to switch to electric partially and some completely. This is testament to the fact that EVs are the future.
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