According to a recent Bloomberg analysis, sales of electric vehicles in the U.S. seem to be at a critical juncture that could affect how American cars develop in the future.
The research claims that 5% of new car sales are electric vehicles, the analysis said that this barrier marks the beginning of broad EV adoption, a time when technology preferences quickly change.
The widespread adoption of electrified vehicles relies on unprecedented collaboration within an ever-evolving industry structure, as well an ongoing shift in consumer perceptions.
In the most recent EY Mobility Consumer Index, reveals that 52% of respondents intending to buy a car want to buy an EV, signaling a global tipping point in the proportion of consumers looking to purchase electric vehicles (EVs). The rate has already surpassed 50% for the first time in just two years, an increase of 22 percentage points.
According to a poll of 13,000 people in 18 countries, customers in Italy (73 percent), China (69 percent), and South Korea (63 percent) are the most dedicated to purchasing an EV, while those in Australia (38 percent) and the US (29 percent) are the least devoted however the report noted that “By the end of 2025, a quarter of new automobile sales may be electric if the US continues the trend started by 18 other nations”
Once the 5 percent threshold is passed, more individuals start to follow the trend, the other major car markets now have begun adopting EVs more and more.
Randy Miller, EY’s global leader for advanced manufacturing and mobility said, “The speed of this change has also been eye-opening, with a rise of 22 percentage points in just two years.”
McKinsey’s Global Energy Perspective 2021, published on 15 January, forecasts that “electric vehicles are likely to become the most economic choice in the next five years in many parts of the world”.
However, there are still challenges standing in the way of the widespread use of electric vehicles, battery prices are expected to continue to plunge. The rise in cost in battery prices in the past decade has been dramatic and much faster than most people predicted. While charging stations are also limited, making drivers delayed for hours waiting to charge their cars.
Last year, in a report by GeoTab, “Electric vehicles are still a relatively new technology. Although early adopters have paved the way, many mainstream consumers are unaware or just learning about the advantages of electric vehicles.”
Sources: Westernjournal, Bloomberg, Jnews