Being future-ready has been the USP of many corporates in the Automotive Industry for decades. The ever-changing consumer preferences have pushed manufacturers to adapt and innovate to newer and safer technology. The EVs are struggling to take the front seat in the automotive space that has been predominantly occupied by automobiles running on fossil fuels. It is so because the energy produced by a traditional IC engine is much higher than its electric counterpart is.
According to JP Morgan Insights, the automotive industry's shift towards a zero-emission sector is underway, and it has accelerated throughout the globe in the past few years. Major innovations such as the Hydrogen Fuel cells by General Motors have shown promising results, such as generating energy enough to boost from 0-60 miles per hour in just 3 seconds and providing a range up to 100 miles with just 10 minutes of charge. Although the results could not get more impressive, EVs' market penetration still lies below 10% in most developed economies. The more significant challenge here is better technology or design and the competitive pricing mechanism compared to traditional automobiles.
The existing models cost a lot more than their petrol/diesel counterparts. Being eco-friendly does not solve the purpose; instead, it is the infrastructure that shall help it sustain. These include charging stations, replaceable batteries, and dedicated service centers placed at locations accessible by the ordinary person, which also have a considerable cost implication that might burden the price of an EV. Further, reliance on parts imported, incentives for local manufacturing, and inadequate electricity supply all across the country like India are some of the significant hurdles that manufacturers need to overcome before they set up plants for EVs production. However, given the limited lifespan of fossil fuels, in the long run, it is inevitable that EVs shall play a significant role in the transportation industry.
The COVID-19 pandemic has made consumers take a relook at how they pursue transportation, and a zero-emission mindset is instilled in individuals worldwide. With the market leaders in automobiles launching newer models in EVs year on year and steady growth in market capitalization, the future of these battery-charged automobiles is looking bright. The end may not promise a complete shift, but it will be a space for co-existence alongside vehicles running on different forms of energy. Just like a young achiever, these new lads have all the talent to satisfy a few demographics. However, there is still a long way to go before establishing a global presence. They shall require more experience, exposure, and persistence.