Electric Cars and the Auto Industry

author: FutureCar Staff    

With the increase in new electric vehicle (EV) inventories on dealer lots, the auto industry faces numerous challenges. Potential buyers have serious concerns regarding driving range, vehicle reliability, price, the availability of electricity for charging infrastructure, charging time, battery cost and lifespan, environmental impact, carbon emissions reduction, lithium battery fires, battery recycling, end-of-life management, the potential end of EVs' free usage of highways without paying fuel taxes, and the possibility of higher rates for home chargers to stabilize the electrical grid.

Another problem for the automobile industry is convincing buyers that it is ethical, moral, and socially responsible to buy an EV. The mining of exotic minerals and metals required for EV batteries often takes place 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."

As government mandates push automobile manufacturers to reduce emissions, they are increasingly focusing on manufacturing EVs. This shift may lead to fewer hybrids, as manufacturers need to eliminate gasoline engines to meet emission targets. However, while manufacturers are increasing the supply of EVs on dealer lots, the demand from the public is not keeping pace.

The current profile of elite EV owners shows that they are highly educated, highly compensated, have multi-car families, and have low mileage requirements for their second car. However, most potential car buyers are not as highly educated or compensated as these elite owners. Mandating a switch to EV ownership and forced austerity may face resistance from those who need affordable transportation.

The lack of a used car market for EVs is also a major problem for the auto industry. Currently, about 73% of all car sales in America are used combustion engine cars. Without a resale market for EVs, their appeal may be limited.

The distribution of EV ownership throughout the nation is also a concern. California accounts for 40% of EVs in America, leaving the other 60% to be distributed among the other 49 states. Additionally, the lack of EV charging infrastructure in most states, combined with the growing demand for electricity, poses challenges for the grid.

The UK is ahead of most countries in protecting its grid with Smart Chargers and Separate Meters for EV charging users. New home and workplace chargers in the UK must be "smart" chargers connected to the internet, with preset limitations on their functioning hours. Authorities can also impose randomized delays to prevent grid spikes. Furthermore, all home-installed EV chargers in the UK are required to be separately metered, potentially leading to higher charging and taxation rates for EV owners.

As new EV inventories continue to rise, there are challenges ahead for the widespread adoption of EVs among the general public.

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

FutureCar Staff