Are Electric Cars the Future of the Automobile Industry?
Many experts argue that electric cars are the future of the automobile industry, and that the introduction of the electric vehicle is the single most significant development in the automotive industry in more than 50 years. Howard Wilner, President of Automax Preowned, explores the increasing popularity of electric vehicles and how it will impact the industry in the upcoming years.
Electric Vehicles in the Next 10 Years
Electric vehicles are set to change the face of the automotive industry — not just for cars, but for all types of transport, including buses, for example. Electric cars are set to replace internal combustion engines, says Howard Wilner, and even further pave the pathway for autonomous vehicles, which are also becoming increasingly common. Some estimate that by 2027, driverless vehicles will replace current vehicles entirely. Additionally, vehicles which are classified as ‘non-gas’ cars will likely triple by 2025, experts state.
Environmental Benefits
Electric vehicles come with significant environmental benefits, which makes them even more popular as people focus more on replacing petroleum products in the future. However, the increasing popularity of electric cars is not without its challenges, particularly manufacturing challenges. Currently it is difficult to mass produce electric cars, specifically as a result of challenges experienced replacing engines with batteries, and the increased demands to join battery cells, among other things. The production of electric cars will significantly decrease oil consumption. Electric vehicles also have fewer parts, which means that electric cars are becoming more and more ‘minimalist’, which could also lead to lowered global supply chain sales. Parts distribution companies may also struggle, states Howard Wilner.
The increased demand for electric vehicles will put the focus on carbon-neutral electrical generation, and these companies are expected to flourish. Green electrical companies are very likely to see massive growth in the coming decades. This is in part in response to growing concerns about climate change, air quality and carbon emissions. Reuters has stated that carmakers are set to invest over $90 billion dollars into the electric vehicle industry over the next 10 years.
Auxiliary Changes
Car dealerships and repair shops may also be affected. Electric cars do not require as much maintenance, and do not require oil changes, mufflers, and traditional brakes. Gas stations will also change as well, being replaced with electric car charging stations. Interestingly, current gas stations require extensive remediation to close, posing potential environmental risks. Electric car charging stations, however, are easy to establish at a very low cost.
Cost Reductions
In the coming years, expect to see the prices of electric vehicles come down significantly, states Howard Wilner. Batteries will become cheaper and will take less time to charge. The growth of charging stations will also help persuade buyers to consider electric vehicles.
This doesn’t mean that we’re going to see the end of traditional combustion engine vehicles, Howard Wilner states. Some experts predict that electric vehicles will quickly dominate the marketplace, while others believe that it will take 20 to 25 years to completely replace all current combustion engines with electric vehicles. Regardless, it cannot be denied that the electric car is changing the face of the automobile industry as we currently know it and will become a dominant force in the upcoming years.
Read Howard Wilner’s article on the Trends Shaping the Automotive Industry
