When Electric Vehicles (EV’s) were first introduced they created quite a stir in the automotive marketplace by releasing environmentally friendlier cars, however this was at a large cost. Now, due to the increased demand for Electronic Vehicles engineers have innovated new batteries that are cheaper to source and manufacture. This means that Electronic Vehicles will fall in price, and have projected lower lifetime costs than conventional internal combustion vehicles by 2029.
This massive estimated price drop has induced curiosity and interest within the car manufacturer marketplace, with Bloomberg New Energy Finance (BNEF) speculating in their ‘Electric Vehicle Outlook 2017’ that by 2040 EV’S will make up most global car sales and account for a third of light-duty vehicles on the roads.
The report predicts that by 2040 EV’S will make up 54% of global light-vehicle car sales, a huge leap from the initial 35% share estimate made in 2016. By making up just over half of the light vehicle market share, EV’S will reduce fossil fuel usage by displacing 8 million barrels of transport fuel per day and contribute 5% to global electricity consumption.
BNEF also predict that current EV sales will increase from 700,000 to 3 million by 2021. This increase is stimulated by the ever-decreasing costs of lithium-ion EV batteries which have dropped in price by 73% since 2010, and have an additional forecasted price drop of 70% by 2030. Because of the lower battery costs Tesla, an Electric Vehicle manufacturer, unveiled their new Model 3 electric vehicle that has an initial range of 215 miles, and is less pricey than their earlier models with it costing $35,000. The production of this new model is expected to reach 20,000 cars per month by December 2017.
These proposals made by BNEF create a positive outlook in the way of cutting fossil fuel usage and reducing our global carbon footprint. However, as highlighted by Salim Morsy, a Senior Analyst on BNEF’s transport team, there is a lack of charging infrastructure that has detrimental effects on people’s ability to use Electronic Vehicles. To increase the future road share of EV, investments need to be made so that cars can be charged at home or at garage stations when travelling long distances.
The takeover of Electric Vehicles has triggered many car manufacturers to jump on the bandwagon to compete with their excellent forecasted sales. Swedish car manufacturer ‘Volvo’ recently announced that from 2019 onwards, every new car launch will have an electric motor – i.e. will at least be a hybrid vehicle. Five fully electric vehicles will be released by Volvo between 2019 and 2021, alongside a range of plug-in and ‘mild hybrids’.
Volvo has been incredibly savvy with their EV developments, as a day after their announcement the French Government also declared plans to disband the sale of any car that uses petrol or diesel fuel by 2040 as part of its commitment to the Paris Agreement on climate change.