EVs – CHANGING THE CAR INDUSTRY FACET IN COMING YEARS

A shift in the commuting mannerism is not far away as we are heading towards travelling in a non-polluting manner. Electronic vehicles (EV) are making a great entry into our world to change over predictions of travelling.

Carlos Ghosn said it right that ‘Electric cars are not going to take the market by storm, but it’s going to be a gradual improvement.’

According to the analysis of the electric vehicle market BNEF, in the year 2020, battery prices fell 35%, and there are on the pathway to make electric vehicles pocket-friendly against their gasoline counterparts in the coming 6 years.

This indicates the real market size for electric cars will be enormous in upcoming years.

It is predicted that by 2040 the wide range of electric cars costing less than $22,000 (today’s dollar value) will hit the market.

Also, 35% of new cars across the world will be electronically operated. Furthermore, by 2022 electric vehicles may cost similar as their internal combustion counterparts.

The oil market has never planned this extensive commercialization of electronic vehicles. Currently, the plug-in cars mount for only one-tenth of 1% of today’s global car market.

In today’s scenario, electronic vehicles are rare on the streets and costs significantly more than their gasoline competitors.

OPEC still believes that electronic vehicles will make up only 1% of cars by 2040.

Vehicle manufacturing giants like Tesla, Chevy, and Nissan have already started selling long-range electric vehicles in the range of $30000. In addition, many other car maker brands and tech companies are investing enormously in dozens of new models of EVs.

As a result, 2020 has witnessed some of the low cost running and performing better vehicles on the streets than their gasoline counterparts.

Tesla Model S has already begun to outsell its competitor in the large luxury cars class in the US.

The impact of EV on oil demand is predicted as reduced demand to the level that may cause the next oil crisis.

As per the current estimations, electric vehicles will displace the oil demand of around 2 million barrels per day as soon as 2023. Therefore, it implies that a surplus of oil would be created, equating to what triggered the oil crisis back in 2014.

However, a more realistic approach expresses that the oil will cross the benchmark of 2 million barrels in 2028.

The mass adoption of electronic vehicles will depend on whether they can be sustained and where all the electricity to charge this vehicle will come from.

The non-availability of fast-charging stations for convenient long-distance travelling will hinder the sale of EVs.

Also, rising oil demand from developing countries can undoubtedly scale out the impact of electric cars, especially if crude oil prices drop below $20 a barrel and sustain there.

Electronic vehicles will keep hitting the market more every year, shortening the oil demand. Very probably, the oil crash onset has begun.