An unprecedented amount of people are now talking about electric vehicles.
As we move towards the future, EVs are entering the mainstream market. The reason behind the growing popularity is that EVs are getting better, cheaper and longer lasting. The increase in demand of EVs itself means an increase in demand for spare parts. Thus auto recycling in this sector will continue to grow and repair services will become more accessible and affordable.
First Generation EVs
When the first generation of EVs hit the market a few years ago, the limited range and high prices meant that it could attract only a limited number of customers. The green consumers, people conscious about the environment, who were the target, did not react as favorably as was hoped. This picture is, however, changing-and very rapidly.
The Renault Zoe travels 400 kilometers, or 249 miles, per charge. This is a generous estimate. A more real estimate would be three quarters of this distance, which by no means is insignificant. Volkswagen rolled out its I.D. concept car, an EV that will sell for around $20,000 and have more than 250 miles of range. Volkswagen has taken the challenging task to have 30 more EVs in its lineup by 2025. Tesla, whose Model 3 is projected at a $35,000 base price and 215-mile range is already creating a lot of buzz. Google and Apple are emerging as good contenders in the race of capturing the EVs’ market share.
All these developments, by the big players are creating a lot of hype in the market. These developments are of course not just limited to hype. The fierce competition is making the cars efficient and cost effective. The radical changes in the industry are not only fueled by the big Silicon Valley companies and their innovation. There is a practical need for better EVs as well. Legislations are changing throughout the world and almost converging on the same spot- reduce CO2 emission. The auto manufacturers are all responding to this as they know the industry’s makeup is going to change forever.
The Tesla Model 3 has well over 300,000 pre-orders already. Some believe this will make EVs more mainstream than ever before and will start a new era for EVs and the whole auto manufacturing industry. Others think EVs will enter the mainstream market even before that. Tesla’s goal is to produce 500,000 vehicles a year by 2020. The Model 3 is going to be the middle class status symbol car when it hits the market. The design is gorgeous, expected to function properly and comes at a good price.
General Motors has put significant resources into their EV program to be in the race and have released some really great products over the years. GM’s Volt is one of the top selling electrified vehicles in North America, and the Spark EV can be considered to be a great success.
GM is expected to be the first manufacturer to release a 2nd generation EV in the market. The release date for Bolt is only six months away and is a confirmed reality right now. Bolt is rated at 200 miles of range with some executives claiming this number is actually undervalued. The production will be limited with plans to sell approximately 30,000 cars a year. This figure is likely to increase because of all the positive perception Model 3 created for the EV segment.
Nissan is best positioned right now to dominate the second generation EV segment. The details on their 2nd generation Leaf have still not been released. This gives them an advantage to adjust the car based on what their competition has already shown to the world. It can be taken for granted that Nissan’s new car will have long range, great style, and lots of wonderful tech. Nissan will also mass produce these vehicles – something that Tesla currently doesn’t have an advantage of. The pricing need to be kept in check as this is a very important factor for customers making the purchase decision.
The increased competition and changing market demands are forcing auto manufacturers to think about the EV segment. To keep up with the market, we cans see large investment in this sector which has lead to more innovation. All these are ushering in the second generation of EVs which are more efficient, faster and affordable.