Understanding the Causative Factors for the rise of Battery Electric Vehicles (BEVs)
Over the past few years, battery electric vehicles (BEVs) have been in the limelight significantly, completely negating the previous predictions of their eventual influence on the auto industry. Almost all automobile manufacturers now have determined to make BEVs their primary product for the coming ten to twenty years. Few original equipment manufacturers (OEMs) anticipated BEV domination in the years leading up to the 2030s.
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The purpose of this article is to bring your focus on a few of the game changers and fundamental causes for putting BEVs on the map in different economies.
Here’s a list of the journeys BEVs have had so far:
Tesla
Without a doubt, Tesla is the primary factor contributing to the growth and popularity of BEVs. Firstly, Tesla gave shape to the idea of what a BEV can be, transforming it from a basic car with uninteresting features to a luxury automobile with incredible acceleration and intriguing amenities.
The market witnessed the popularity of Tesla S among many buyers of luxury cars.
Tesla started building its factory in China in 2019. About 5,00,000 units are produced in Shanghai each year. Thereafter, 2020 saw Tesla sell 1,40,000 BEVs, making it the most popular BEV brand in China.
That’s not it. Tesla is constructing manufacturing facilities in Austin, Texas, and Berlin, Germany.
Volkswagen
The second-largest contributor to the momentum for BEVs is Volkswagen. After its diesel debacle, it committed strategically to the development of BEVs. VW made a wise decision with this, and it is now beginning to pay off.
Owing to VW’s massive BEV investments, all of its big rivals were effectively compelled to follow and make BEV investments; some more quickly than others. After witnessing Tesla’s success and VW’s quick BEV spending that ranged from model announcements to production and battery factory investments — GM too was on the BEV track.
In news as of 14th March 2023, More than two-thirds of the 180 billion euros in investments will be directed towards the “electrification and digitalization” of vehicles as was announced by VW.
The German automotive giant reported an operating profit of 22.5 billion euros for the year 2022, which was up 13% from the prior year as BEV deliveries increased by 26%.
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Decline In Battery Prices
The sharp drop in battery prices is a key contributor to the increased interest in BEVs. From 2013 and 2020, battery costs decreased by 80% on average; more price declines are anticipated throughout the ensuing decades. According to a December 2018 Bloomberg article, the cost of a single kilowatt-hour at the battery pack level will drop to $137 in 2020 from $668 in 2013.
Depending on who you ask, it is anticipated that investments in battery production volume and technological advancements will make BEVs’ prices more competitive with those of Internal Combustion Engines (ICE) by the 2023–2025 timeframe. BEVs will be much less expensive than gas-burning vehicles by 2030.
Added Incentives For Purchasing BEVs
Incentives for purchasing BEVs have already had an impact and will do so moving forward. Such incentives have differed from nation to nation. In several U.S. states and other areas, there are also local BEV incentives available. Purchase incentives become less significant as BEV prices fall. BEV incentives will be crucial for a few more years, but after 2025, they’ll probably stop having any effect in the majority of regions.
In three states, laws restricting the sale of internal combustion-powered vehicles have been passed. 2035 has been declared by California and Massachusetts as the final year for ICEV sales. Washington chose the year 2030.
Laws banning the sale of internal combustion engines are also being proposed or adopted in numerous towns. This includes more than 20 cities in Europe, South Africa, and the United States.
Despite significant auto industry investments and 20 years of achievement in reducing emissions, it has not been enough. Wherever power is produced, emissions are produced, which vary widely depending on the technology utilized to produce the electricity.
BEVs should be encouraged in countries like Norway, where hydroelectricity generates about 90% of the country’s electricity.
Owner Advantages
Between the United States and Europe, where petrol prices are up to 6 times higher, there is a significant difference in the pricing of every gallon of gasoline that a consumer purchases.
Compared to the same gasoline price per mile traveled, the price of electricity is both significantly more consistent and cheaper. BEVs as compared to combustion cars require less maintenance. Thus, there is a decline in operating expenses for BEVs are a result of decreased fuel and maintenance expenditures. Even when the premium associated with buying a BEV is taken into account, the result is typically lower lifetime costs for BEVs compared to internal combustion engines.
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Another advantage for BEV owners who have a “gas station” in their garage is the ability to charge their vehicles at home. That is a slow-charging task that typically takes the entire night.
Conclusion
BEVs are en route to taking over as the predominant powertrain in the automobile sector. The previous three years have seen an increase in the momentum for which BEVs will require additional modifications and technological advancements. They are booming as a result of significant investments in the required technology from many businesses.
