Initially, the automotive market had taken environmental regulation as a big threat to the business rather than considering it as an opportunity for the greater good. But now every car maker is focusing on low carbon vehicles. The current scenario is very uncertain with respect to the future technologies, including battery and charging technologies supporting the growth of the electric vehicles market. In addition, fuel cell vehicles will certainly increase the market competitiveness.
Factors Triggering the Adoption of Electric Vehicles:
Decarbonisation of Vehicles: Many countries believe that climate change cannot be avoided without radical decarbonisation of vehicles. From 1990, EU transport has witnessed a 29% rise in emissions.
Volatile Oil Prices and Low Range: Low range of conventional vehicles and the ever increasing oil prices have increased the operational expenditure. This has further shifted the focus towards electric cars.
Regulation and Incentives: Stringent regulations imposed by the governments and regulatory bodies will reduce the vehicle emissions, improve the operational efficiency, and address the challenges in the current market. Government support initiatives such as incentives on tax will further drive plug-in vehicles into the market.
Countries that have imposed a ban on Internal Combustion Engine
The above countries have initiated a protocol to ban gasoline-based vehicles. The UK, France, Germany, Norway, The Netherlands, and India are the countries that have announced a precise year for the ban on sales of internal combustion engine vehicles. Countries such as Austria, Spain, Denmark, Ireland, Korea, Portugal, Japan, China, and the U.S. have set an official target for the sales of electric vehicles. This further provides us with an inference that very soon other countries will also announce the precise dates on the ban of petrol and diesel based vehicles. These protocols have further led the car makers to augment their existing business models and offerings. Certain car makers, such as Volvo, have announced the plan of going complete electric by 2019. BMW is also exploring the path but has not announced any specific date for the complete change over.
Key Elements for Wide Adoption of Electric Vehicle:
Batteries: Batteries play a crucial role in adoption of electric vehicle. Battery capacity helps determine the vehicle range, cost, and charging time.
Increasing Range of Electric Vehicles: The process of powering battery by utilizing minute amounts of energy from one or more ambient energy sources, energy harvesting helps increase the range of the vehicle. In addition, it helps lower greenhouse gas emissions.
Efficient Vehicle Electrification: High Power electronics adds up a significant value to the electrification of the vehicle. It helps the other power electronics components to operate efficiently.
Charging Infrastructure: Public charging infrastructure plays a significant role in the adoption of electric vehicles. The more the number of public access charging stations, the more the number of people willing to buy the electric cars.
EV Charging Stations:
China has the maximum number of charging infrastructure followed by the U.S., Japan, the Netherlands, Germany, France, the U.K. and others. For successful deployment and adoption of electric vehicles, countries need to increase their investment in charging infrastructure. The current focus is on building the highly dense charging infrastructure in metropolitan area. It will take a few years to spread the charging infrastructure network in the rural areas. China is planning to deploy charging infrastructure at every 50km.
Across the globe, companies are realizing the need to shift from fossil fuel based vehicle to renewable energy based sources. They are planning to ban the sales of internal combustion based engines, which are major causes of global warming. Majority of the developed countries have set targets to phase out the ICE vehicles, which is anticipated to reduce the global pollution levels. Most of the European countries are planning to phase out the ICE vehicles by 2040, while Asian countries such as Indian and China are planning to move to all electric vehicle fleet by 2030. More announcements are anticipated to follow by 2020 with majority of the OEMs announcing to phase out the ICE based vehicles and move to electric vehicle fleet.