Electric Cars and the Auto Industry

author: FutureCar Staff    

The auto industry is facing challenges as it tries to increase the sales of electric vehicles (EVs). Potential buyers have concerns about various issues related to EVs, including 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 concerns about future costs such as the Vehicle Mileage Tax and separate metering for home chargers.

Another problem for the industry is convincing buyers that it is ethical and socially responsible to buy an EV, considering that the minerals and metals needed for 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 the documentary film "Planet of the Humans".

Despite these challenges, automobile manufacturers are mandated to reduce emissions and are focusing on manufacturing EVs. However, there is a disconnect between the supply of EVs on dealer lots and the demand from the public. Current EV owners are highly educated, highly compensated, and often part of multi-car families with low mileage requirements. This profile is different from the majority of potential car buyers who are not as highly educated or compensated. Mandating a switch to EVs and imposing austerity measures may face resistance from those who need affordable transportation.

The lack of a used car market for EVs is also a concern. Currently, about 73% of car sales in the US are used combustion engine cars, and the lack of a resale market for EVs may pose a problem for the auto industry. Additionally, the distribution of EV ownership throughout the country is uneven, with California having 40% of the EVs in the US. Other states have limited EV charging infrastructure and may even be exporting electricity to California.

In the UK, the government is taking steps to protect its grid and manage EV charging. Smart chargers connected to the internet are being installed, and separate meters are required for EV charging. This allows for rationing of electricity and potential higher taxation for EV charging. These measures aim to prevent grid spikes and ensure a stable electrical grid.

As EV inventories continue to rise on dealer lots, there are challenges ahead for the widespread adoption of EVs among the general population.

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

FutureCar Staff