There are five factors behind the consolidation of the electric vehicle as a market trend:
- Cost: although the price of electric vehicles is still somewhat higher than that of traditional vehicles, we’re getting ever-closer to parity, and there is growing evidence that in terms of total costs, running an electric vehicle is far cheaper, partly due to the price differential between electricity and diesel or gasoline, along with low maintenance. This change, in fact, threatens the traditional distribution structure of the automotive industry: one in six Cadillac dealers decided to close rather than follow the brand’s recommendations and start selling electric cars. Simply put, when you take maintenance out of the equation, there’s not much in it for dealers.
- A fast-changing market: Volkswagen, copying Tesla, has launched its ID range; GM is pressing ahead with a complete transition; Toyota, after many years on the sidelines of electrification, has finally announced an all-electric vehicle. And then there are companies such as the UK’s MG, the alliance between the Chinese technology company Baidu and the automotive giant Geely, the announcement that Hyundai will manufacture electric vehicles designed by Apple, and the major investment round obtained by Rivian. Companies such as Volkswagen, the Renault-Nissan-Mitsubishi consortium or the alliance between Hyundai and Kia match or surpass the all-powerful Tesla in the European market. Technologically, Tesla is still several years ahead of its competitors, but undoubtedly, the arrival of cheaper electric vehicles from other brands, which brings a more complete range of models and prices, has acted as a real catalyst for market development.
At this stage in the game, as deadlines on their sale and restrictions on their movement loom, along with higher fuel prices and taxes, buying a petrol or diesel vehicle makes no sense and so more and more brands are reducing the presence of these vehicles in their range. Simply put, an obsolete technology is now being abandoned, a process that points to a healthier, brighter future for all.