Electric Cars and the Auto Industry

author: FutureCar Staff    

With new EV inventories beginning to increase on dealer lots, the auto industry faces challenges in locating buyers who have concerns about various issues related to EVs. These concerns include driving range, vehicle reliability, price, the availability of electricity for charging infrastructure, charging time, the cost and lifespan of batteries, their environmental impact, the actual impact of EVs on reducing carbon emissions, statistics about uncontrollable fires in lithium batteries, problems with battery recycling and end-of-life management, concerns about the Vehicle Mileage Tax (VMT) ending the EV free ride on highways, and concerns about home chargers being on separate meters. These concerns suggest that there may be more costs for EV owners in the future.

Another problem for the automobile industry is convincing buyers that it is ethical, moral, and socially responsible to buy an EV. This is because the exotic minerals and metals required to build EV batteries 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 illustrated in Michael Moore's documentary film "Planet of the Humans."

As government mandates push automobile manufacturers to reduce emissions, they are increasingly focusing on manufacturing EVs. This means that hybrid vehicles may become less common as manufacturers strive to meet emission targets. However, while manufacturers are increasing EV supply, they are not seeing the same level of demand from the public. Current EV owners tend to be highly educated, highly compensated, and have low mileage requirements for their second car. This profile is different from most potential car buyers, who may not be as highly educated or compensated. Mandating a switch to EV ownership and forced austerity may face resistance from those who need affordable transportation.

Historically, internal combustion engine (ICE) car sales in America are around 55 million annually, with about 27% being new and 73% being used car sales. However, the EV industry currently has virtually no used car market. This lack of a resale market, combined with the challenges of EV charging and potential battery replacements, may pose a major problem for the auto industry.

The distribution of EV ownership throughout the United States is also a concern. Currently, about 40% of EVs in America are in California, while the other 49 states have a much smaller percentage of EVs. Additionally, California imports more electricity than any other state, which raises questions about the ability of other states to support EV growth. The UK is ahead of most countries in protecting its grid with Smart Chargers and setting up separate meters for EV charging users to pay for a new grid.

In the UK, new home and workplace chargers must now be "smart" chargers connected to the internet and have preset limitations on their functionality during certain hours. Authorities can also impose randomized delays to prevent grid spikes. The UK Electric Vehicles (Smart Charge Points) Regulations 2021 require all home-installed electric vehicle chargers to be separately metered and send information to the Smart meter data communications network. This legislation potentially allows for higher rates and taxation of electricity used for EV charging and enables rationing of electricity for EV charging.

With the increasing inventories of EVs on dealer lots, there are challenges ahead for the penetration of EVs into the lives of the general public.

Ronald Stein is an engineer and senior policy advisor on energy literacy for CFACT. He is also a co-author of the book "Clean Energy Exploitations."

FutureCar Staff