The automotive industry is experiencing a significant shift as electric vehicles (EVs) gain popularity, causing a decline in traditional internal combustion engine (ICE) vehicles.
According to AutoMotive data, gasmobiles have seen a decrease in market share from 78% to 63% over a two-and-a-half-year period, while EVs have increased their market share from 10% to 17.4%.
When considering plug-in hybrids and battery-electric vehicles together, they now account for 25.7% of car sales, up from 21.9% the previous year.
The interplay between government policy and EV sales is crucial, as seen in Romania where the withdrawal of EV incentives led to a significant downturn in sales.
Conversely, California is exploring a state-based EV tax credit to offset potential federal cuts, although this plan may exclude Tesla, which dominates the state's EV market.
The cost of owning an EV is projected to become more competitive with traditional vehicles as battery technology advances and raw material prices decline.
EVs also offer reduced maintenance expenses compared to gasmobiles, making them more appealing to cost-conscious buyers.
Concerns about the longevity and replacement costs of EV batteries are being addressed, as projections indicate that by 2030, replacing an EV battery will be cheaper than replacing a gas engine.
Modern EV batteries are expected to last for 200,000 miles or more, enhancing the value proposition of EVs and alleviating concerns about long-term viability.
With declining costs, supportive policies, and growing consumer acceptance, the momentum behind EVs is set to reshape the future of the automotive industry.