Electric vehicle is the next big thing in the automobile industry worldwide. An electric vehicle or EV works on an electric motor. It does not require an internal-combustion engine that burns a mixture of fuel and gases to generate power. This is the reason why electric vehicles are attracting the new-generation customers. These vehicles, which are being considered as environment-friendly, are greatly preferred to combat the global warming, air pollution, and overuse of natural resources. The concept of electric vehicles is not a brand new one. However, because of the rising carbon footprint and climate concerns, it has attracted a significant amount of interest in the last decade.
Some Factors Propelling Growth of the Market
As mentioned earlier, the global electric vehicle industry is experiencing a swift growth in recent years. Internal Combustion Engine (ICE) vehicles emit a huge portion of greenhouse gases into the atmosphere. In order to control the carbon emission in the air, the governments of various countries have taken many initiatives to promote the necessity of deploying electric vehicles. Moreover, the charging cost of an electric vehicle is almost 40% lesser as compared to the cost of petrol or diesel. This cost can be reduced further, if the electric vehicle is powered by solar photovoltaic (PV) system.
These are main factors behind the growth of the electric vehicles market during the forthcoming years.
Recent Development and Trends
- Bayerische Motoren Werke Aktiengesellschaft
- BYD Company Limited
- Daimler AG
- Energica Motor Company S.p.A
- Ford Motor Company
- General Motors Company
- Nissan Motor Co., Ltd.
- Tesla, Inc.
- Volkswagen AG
- Toyota Motor Corporation
These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology.
Some of the recent developments of the market are as follows:
- In January 2021, BYD UK along with Alexander Dennis Limited (ADL), announced that both of the companies will commence the design and assembly of chassis for the BYD ADL partnership's electric single and double deck buses for the British market, ensuring completed vehicles are built in ADL's facilities in the UK.
Alexander Dennis Limited or ADL is a subsidiary of leading independent global bus manufacturer NFI Group Inc. (NFI), while BYD is a global leader in batteries, energy management and electric mobility.
The rising demand for zero emission vehicles is the reason behind this huge step by the BYD company.
- In May 2021, American multinational automaker company, Ford, introduced a new product- 2022 F-150 Lightning® Pro. This is the first-ever all-electric F-Series truck purpose-built for commercial customers. The lightning pro joins E-Transit in the growing lineup of Ford work-ready electric vehicles, backed by a network offering EV-certified fleet sales, service, and financing, thus enabling zero emission.
- In April 2021, Japan's Nissan Motor Co, a global manufacturer of automobile, displayed a restructured version of its X-Trail model, which is expected to reduce cost and speed up industry growth. At the auto show hold in Shanghai, China, the company also announced their strategy for a green car.
- In April 2021, Toyota Motor Corporation, a global automobile manufacturer, announced the arrival of Toyota bZ, its newly recognized series of battery electric vehicles (BEVs), in establishment of a full line-up of electrified vehicles. Toyota unveiled a concept version of the Toyota bZ4X at the Auto Shanghai, a motor show held in Shanghai, China. This version will be the first model in the bZ series.
Impact Analysis of Covid-19 on the Electric Vehicle Market
The coronavirus pandemic affected the electric vehicle market in a drastic way like any other automotive businesses. In addition, the market is also experiencing a decline in growth rate because of the high prices of electric vehicles. Lockdown and restrictions imposed across the nations in order to curb the spread of coronavirus pandemic have further impacted the market with declining demand and production rate.
Most of the leading companies of the market have come forward to help the society during this catastrophic situation. For instance, as part of a recent initiative, Kokoro of Nagoya Health & Welfare Bureau and Toyota Tsusho Corporation provided 10,000 sets of medical personal protective equipment (isolation gowns) to the City of Nagoya Health & Welfare Bureau. This initiative was started by Toyota Motor Corporation and other Toyota Group companies in December 2020, which is still working toward offering essential help to the frontline health workers.