Electric Cars and the Auto Industry

author: FutureCar Staff    

The auto industry is facing numerous challenges as the inventories of electric vehicles (EVs) increase on dealer lots. One of the main challenges is finding buyers who have concerns about various aspects of EVs, such as driving range, vehicle reliability, price, availability of electricity for charging infrastructure, charging time, battery cost and lifespan, environmental impact, carbon emissions reduction, lithium battery fires, battery recycling, and the potential end of EV owners' free ride on highways without paying fuel taxes.

Another problem for the automobile industry is convincing buyers that it is ethical, moral, and socially responsible to buy an EV, considering that the exotic minerals and metals required for battery production are often mined in developing countries with limited environmental and labor regulations. The lack of transparency in the green movement's impact on these countries is discussed in the book "Clean Energy Exploitations" and the documentary film "Planet of the Humans."

Despite these challenges, automobile manufacturers are shifting towards manufacturing EVs due to government mandates to reduce emissions. However, there is a disconnect between the supply of EVs on dealer lots and the demand from the public. Current EV owners have different profiles compared to most vehicle owners, being highly educated, highly compensated, and part of multi-car families with low mileage requirements for their EVs. Mandating a switch to EV ownership and imposing austerity measures may face resistance from those who need affordable transportation.

Additionally, the lack of a used car market for EVs is a major problem for the auto industry. Currently, about 73% of all car sales in America are used combustion engine cars, and the lack of a resale market for EVs raises concerns. Furthermore, the distribution of EV ownership throughout the nation is uneven, with California accounting for 40% of EVs in America. Other states have limited EV charging infrastructure and may even export electricity to California.

With the growing demand for EVs, the supply of electricity is not keeping up, leading to challenges like those faced by the UK. The UK has implemented Smart Chargers and Separate Meters for EV charging users to pay for a new grid. These measures include limiting charger functionality during certain hours and allowing authorities to impose delays to prevent grid spikes. Additionally, new regulations require all home-installed EV chargers to be separately metered and provide data to the Smart meter network, potentially resulting in higher taxes and the rationing of electricity for EV charging.

As new EV inventories continue to rise, the road to widespread EV adoption among the general population may be bumpy. The auto industry will need to address these challenges and find solutions to ensure a smooth transition to EVs.

Ronald Stein, an engineer and senior policy advisor, highlights these issues and is the co-author of the book "Clean Energy Exploitations."

FutureCar Staff