Are Electric Vehicles The Future Of The Automotive Industry?

The advent of Electric Vehicles (EVs) is revolutionizing the automotive industry landscape rapidly. According to Statista, between 2020 and 2026, the size of the global electric vehicle market is expected to increase over four-fold to reach an estimated global market size of approximately one trillion U.S. dollars by 2026.

Furthermore, per a McKinsey report, the largest automotive markets are expected to go fully electric by 2035. Naturally, the answer to; ‘Are electric vehicles the future?’ is a resounding yes!

In this blog, we cover everything related to electric vehicles – its meaning, types of EVs, significant benefits of switching to EVs, key factors leading to the growth of the EV market and its future. Let’s get started –

At a glance –

Introduction

What Are Electric Vehicles?

Different Types Of Electric Vehicles

Significant Benefits Of Vehicles Going Electric For The Auto Industry

Key Factors Leading To The Growth Of The Electric Car Market

Future Of The Electric Vehicle Market

How RENTALL Supports The Growth Of The EV Market

First of all, what are electric vehicles?

In simple words, electric vehicles are vehicles that function by means of battery-operated mechanisms. As opposed to gas-powered vehicles that use internal combustion engines, electric vehicles are powered by electricity from an external battery and are capable of covering a specific distance at a single charge. After that, the batteries need to be recharged at private or public electric vehicle charging stations. Some remarkable features of electric vehicles include increased comfort, ease of use, better efficiency and their notable contribution toward a sustainable future.

Next, let us understand the different types of electric vehicles –

As such, electric vehicles are categorized into three main categories – Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).

• Battery Electric Vehicles (BEVs): These vehicles are solely powered by an electric battery and do not have any form of internal combustion engine (ICE) at all. In order to operate or cover substantially long distances, they need to be recharged at private or public electric vehicle charging stations at timely intervals.

• Hybrid Electric Vehicles (HEVs): These vehicles are powered by an internal combustion engine as well as an electric motor and a battery pack. Like regular ICE vehicles, they need to be refuelled regularly with gasoline to be able to function. As far as battery recharging is concerned, it is done automatically by regenerative braking.

• Plug-in Hybrid Electric Vehicles (PHEVs): Similar to HEVs, these vehicles too are powered by an internal combustion engine and an electric motor. However, they can operate solely on fuel as well as in an electric-only mode. When operating on an electric-only mode, PHEVs require a larger battery and at such times, they can be plugged into an electric power source to recharge.

Thereafter, let us learn about some of the significant benefits of vehicles going electric for the auto industry –

1. Convenience of Use –

Electric vehicles do not have a gearbox and are devoid of a clutch. This means that there are no complicated controls involved. The driver simply has to accelerate, brake and steer as required.

Moreover, EVs do not require regular visits to the fuel station as well. They can be recharged both – at home as well as at public electric vehicle recharge stations, whichever is more convenient.

As a result, EVs enable the automotive industry to provide consumers with an exceptional experience in terms of overall usage by employing the latest technological advancements in the industry.

2. Low on Maintenance –

As compared to ICE vehicles, the cost of maintenance for electric vehicles is significantly low. This is mainly because they do not have as many moving parts as an ICE vehicle that need to be serviced periodically. In addition to that, since they are powered by electricity and not gasoline, they do not require regular refuelling.

Taking into consideration the high fuel costs in current times, this undoubtedly results in a drastic reduction in the overall monthly operational expenses too.

Hence, while an initial investment in an electric vehicle may appear to be on the higher end, in reality, it offers a much greater return on investment in the long run.

3. Improved Efficiency –

In simple words, energy efficiency is the use of less energy to perform the same task or produce the same result.

According to the U.S. Department of Energy, electric vehicles convert over 77% of the electrical energy from the grid to power at the wheels while conventional gasoline vehicles convert only about 12% – 30% of the energy stored in gasoline to power at the wheels.

Obviously, EVs are much more energy-efficient and profitable to the mobility industry in comparison to traditional, ICE vehicles.

4. Reduced Carbon Footprint –

Another remarkable benefit of vehicles going electric for the auto industry is the sizeable reduction in carbon footprint. Since electric vehicles run on electrically powered engines, they do not create any tailpipe emissions which are a major source of pollution across the globe.

Consequently, they do not emit any other toxic gases or smoke that could possibly harm the environment. Furthermore, the energy used to recharge the batteries for EVs can also be obtained through renewable sources like solar panel systems.

All in all, switching to EVs can prove to be a highly environmentally-friendly choice.

5. Enhanced Experience –

In addition to that, electric vehicles offer an outstanding user experience by providing an ultra-smooth ride and curbing noise pollution to a great extent. This is mainly because electric motors are much lighter and capable of offering a smoother drive with higher acceleration for long distances, compared to ICE vehicles.

In fact, electric cars are so quiet that they are now required by law to have an Acoustic Vehicle Alert System (AVAS) to emit a sound when reversing or travelling below 12mph, to ensure safety for pedestrians.

6. Tax and Financial Benefits –

Lastly, opting for electric vehicles can also prove beneficial from a financial point of view. Owing to its multifold benefits for the environment, various governments and companies are promoting EVs by developing favourable policies and offering different forms of incentives (they vary from country to country).

Early adopters of EVs can learn about the government offerings in their respective countries and use them to their advantage.

How RENTALL Supports the Growth of the EV MarketAt Rentall, one of our core goals as a business is to help the automobile industry become more sustainable. As a result, we are extremely passionate about creating a platform that delivers the best results possible for any business looking to offer electric vehicle rental.

Content writer & Digital Marketer at Rentall. Rentall global business, delivering the most comprehensive and flexible SaaS solution in the rental industry.