Electric vehicles (EVs) will start to dominate the automotive industry further. These vehicles are aimed not only for zero-emission, but they can also manifest the technological evolution of the automotive industry.
In 2040, the United States and other countries will push automakers to release more electric vehicles and stop producing cars that run on fuel. The integration of EVs seems to be on track for the switch, but are we ready for the change?
Automakers to release more EVs
According to the Bloomberg New Energy Finance analysis, electric vehicles sold worldwide only cover a small fraction of cars. But in less than two decades from now, these cars will rule the roads and highways.
The automotive industry has to adapt quickly because the significant shift in car production will happen in the coming years. Carmakers must adjust to the changing times and modify their old ways to keep up with modernism. Slowly, the car manufacturers are integrating Plug-In Hybrid Electric Vehicles (PHEV) and Battery Electric Vehicles (BEV) into the range of products they offer to global auto consumers.
First, the automakers produce car models they initially built with gas or diesel powertrains. Then, they tweak the car and truck parts to add space for the battery and place a more advanced computer system.
Various carmakers have already launched a few modern electrified versions of their vehicles. GM has created an electric Hummer, while Ford launched a hybrid F-150 series and Mach-E's all-electric SUV. Jeep has also made the first plug-in hybrid called the Wrangler 4xe.
Countries banning combustion engines
In Norway, the government plans to ban cars with internal combustion engines (ICEs) by 2025. The country wanted to impose it a few years earlier since they have the highest electric vehicle usage.
Last September 2020, Governor Gavin Newsom proclaimed an executive order that would affect the automotive industry in California and the entire country. This executive order will ban all the in-state sales of gasoline and diesel-fueled vehicles by 2035. The directive aims to combat climate change and help meet the zero-carbon goals of the state.
To slash the European Union’s CO2 emissions, Ursula von der Leyen, the European Commission President, campaigns to ban the use of combustion engines vehicles. By 2030, the EU sets to ban the sale of brand-new fuel-guzzling cars completely.
Singapore also vows to be the first Southeast Asian country to abandon the sale of cars that run on fossil fuels. Heng Swee Keat, the Finance Minister of the country, said that they intended to phase out vehicles with internal combustion engines by 2040. On the roads of Singapore, you can often see several sports car brands with gas powertrains like Lamborghini, Porsche, and Ferrari. However, this announcement will kick these fuel-powered vehicles to the curb.
Other countries like the United Kingdom, Denmark, and France plan to entirely abolish selling new fueled cars. China is also planning to eradicate gas and diesel cars, but they have not set a deadline for the ban.
Increasing EV sales by country
Bloomberg NEF’s Economic Transition Scenario projected the sales of passenger EVs to increase sharply. So, from 3 million in 2020, it could rise to 66 million in 2040. Also, in that year, EVs will represent more than two-thirds of car sales globally.
Norway was the first country to adopt electric vehicles. Today, their EV sales overtook diesel- and gas-powered cars. In terms of total passenger car sales, it has the highest share of EVs and a high market penetration per capita. Norway also has the largest plug-in segment of brand-new car sales in the world. The BEVs in the country made up 54.3 percent of all new electric car sales in 2020.
China has the largest market for electric vehicles. It had a 1.3 million EV sales record in 2020, representing 41 percent of the global EV sales. Being the most populated country, it is unsurprising if China can kick Norway off the top of the list at any time. You can find many car brands producing electric cars in China, so it’s not long until they will topple the US, UK, and France. The best-selling EVs in China are Hongguang Mini EV and Tesla Model 3.
Do ICEs increase pollution?
In his announcement, Governor Newsom wants to aggressively move California away from its dependency on fossil fuels, which plays a huge role in climate change that caused the heatwaves in 2020 and 2021. These events brought record-high temperatures, created wildfires that burned millions of acres and covered significant parts of California in a cloud of smoke that threatened the people's health.
The governor announced the executive order banning the sale of all brand-new cars with combustion engines by 2035. The directive aims to boost the carbon-reduction policies of the state. He would like to sustain and create jobs in the process and spur economic growth in the state.
When you look at the price of electric vehicles, they are considerably more expensive than some fuel-running cars. The cost of brand-new vehicles increases annually, so only a small percentage of car buyers can afford them if EVs have ridiculous prices.
Many first-world countries embrace the rise of electric vehicles, and while a few developing countries are extremely slow in adopting the technology, they’re still trying. The country leaders encourage people to purchase electric cars for transportation sustainability, enhanced environmental awareness, and reduced toxic emissions. Owning an electric vehicle also has its benefits like free parking spaces, tax incentives, etc.
In Singapore, Finance minister Heng encourages their citizens to switch to using electric vehicles. He said they have an early adoption incentive and government-levied fees when people register their electric cars. Car buyers can get up to 20,000 Singaporean dollars ($14,375) in rebates if they purchase a new electric vehicle.
Dedicated production lines for electric vehicles will make them more affordable, even before subsidies. By 2027, carmakers in Europe will make BEVs cheaper than cars running on fossil fuels.
According to the research done by Bloomberg New Energy Finance, the electric SUVs and sedans (C and D segments) will be more cost-effective to produce. The small cars (B segment) and vans will follow because automakers will introduce new vehicle architectures. Also, the prices for batteries will be lower. It is possible that by 2030, the electric versions of pickup trucks and freight trucks will be fifty percent cheaper to own than their diesel counterparts.
All electric and fuel-powered cars have a basic wheel and tire setup. Some EVs may have a built-in tire pressure monitoring system, so changing the tires yourself is not easy as changing the tires on gas-powered cars. But that’s okay because local or online tire shops with a tire mounting service can help you with that.
Unlike fuel-powered vehicles, it is not easy to make significant changes to electric cars. They are complicated to modify due to the advanced tech, complex wiring parts, and battery system. Suspension, interior, and exterior mods are possible in hybrid vehicles.
Because some parts from regular gas-powered cars are present, you can still do some mods to improve the performance or looks of the electric vehicle. For example, since the Wrangler 4xe is a PHEV, you can replace the stock with aftermarket Jeep wheels.
Gearing towards EVs
The shift to EVs will hugely affect the car-buying experience and even the jobs in the automotive sector. We have seen fuel-focused industries troubled by various problems, including the pandemic.
A lot of people are open to switching to the e-mobility value chain. The biggest challenge, for now, is for the global automotive industry, along with country leaders, to improve the charging networks. It can greatly help with the transition and ensure that EV owners will not have a hard time powering up their cars.