24.Jan .2021 23:00

The Five Factors Driving The Mass Adoption Of Electric Vehicles

The Five Factors Driving The Mass Adoption Of Electric Vehicles
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Global electric vehicle sales grew by 43% during 2020, and in some markets such as Norway or the Netherlands sales outnumber petrol and diesel cars. In Europe overall, electric sales during 2020 exceeded half a million units, while in the United States, the new Biden administration is considering incentives to put millions of electric vehicles on the road.
 Finally, after much lost time, everything indicates that we have reached the tipping point, that 2021 will mark the beginning of mass adoption, and that the internal combustion engine will have seen its day.
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.
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.
Source: Forbes