Top 5 Benefits of Electric Vehicles Usage and Global EV adoption Surge insights
In the fast lane of technological innovation, electric vehicles (EVs) have emerged as the frontrunners, steering us towards a cleaner, more sustainable future. As cities buzz with the hum of electric engines, it’s high time we explore the myriad benefits of electric vehicles and dive into the accelerating global trends of their adoption.
1. Earth-Friendly Commutes:
One of the most compelling advantages of electric vehicles is their environmental friendliness. Unlike their gasoline counterparts, EVs produce zero tailpipe emissions.
According to a research, EV emissions might be up to 43% lower than those of diesel cars.
With climate change at the forefront of global concerns, the shift to electric vehicles significantly reduces our carbon footprint, helping combat air pollution and mitigate the impacts of climate change.
While power stations and other facilities that generate energy may produce pollutants, electric cars and plug-in hybrid electric vehicles (PHEVs) have no exhaust emissions. All-electric cars and plug-in hybrid electric vehicles (PHEVs) often offer a significant life cycle emissions advantage over comparable conventional vehicles operating on gasoline or diesel in geographic locations where power generation is primarily provided by relatively low-polluting energy sources. All-electric cars and plug-in hybrid electric vehicles (PHEVs) could not show as big of a life cycle emissions advantage in locations with greater energy emissions.
2. Cost-Efficient Cruising:
While the upfront cost of electric vehicles can be a consideration, the long-term savings are substantial. EVs generally have fewer moving parts than traditional vehicles, leading to lower maintenance costs.
Even with the initial cost premium of 70–80% as compared to fossil fuel-powered cars, there can be significant financial benefits shifting to electric automobiles. This is because EVs, which range from buses to two-wheeled scooters, are less expensive to operate and maintain. Over the course of the EV’s life, lower maintenance expenses alone can save $5,000, outweighing the increased expense of using electricity as fuel. Even more savings are achieved since a large number of low- and middle-income nations (LMICs) tax gasoline and subsidize electricity.
For example, a Chevrolet Bolt costs $8,000 more to purchase than a Hyundai Elantra GT, however the Bolt costs $15,000 less to operate over a 200,000-mile lifetime, for a savings of $7,000, as per a study found. Operating cost savings in luxury car segments are often aided by a tighter price differential. The Tesla Model 3 is priced lower than the gas-powered BMW 330i, and priced only about $2,000 more than an Audi A4. Nevertheless the savings on operating costs for the Tesla Model 3 are about $17,000 when compared with either of the popular German gas-powered sedans.
“No matter how you look at it, the massive lifetime savings potential of EVs could be a game changer for consumers,” says Chris Harto, CR’s senior policy analyst for transportation and energy, and the leader of the study. “As battery prices and technology improve, prices come down, and more attractive models hit the market, it’s only going to get better.”
Additionally, as the technology advances and production scales up, the cost of electric vehicles is steadily decreasing, making them more accessible to a broader range of consumers.
3. Energy Independence:
Electric vehicles contribute to reducing our dependence on finite fossil fuels. As the world transitions to renewable energy sources, the integration of electric vehicles aligns with the broader goal of achieving energy independence. By tapping into solar, wind, and other sustainable energy options, we not only power our homes but also our vehicles, creating a more resilient and sustainable energy ecosystem.
To sight an example, since two-wheelers account for more than 70% of all travel miles in India, the country transitioning to EVs will help not only reduce air pollution (not to speak that India is home to some of the most polluted cities) but also lessen its heavy reliance on imported oil while promoting industrial development. Similar to Africa, private two-wheelers and public three-wheelers would likely lead the way in India’s transition to an electric fleet. A solution that allows the batteries in these cars to be changed would reduce the initial cost of an EV and extend its commercial life time—many of these vehicles are operated in several daily shifts.
4. Technological Triumphs:
Electric vehicles are not just a mode of transportation; they are rolling showcases of cutting-edge technology. From regenerative braking systems to sophisticated battery management, the innovation in EVs is driving advancements across the automotive industry. The adoption of electric vehicles stimulates research and development, pushing the boundaries of what’s possible in the world of clean, efficient transportation. Here a short video about Nissan’s EV innovation.
5. Governmental Green Initiatives:
Governments worldwide are taking notice of the environmental benefits of electric vehicles and are incentivizing their adoption. Incentives such as tax credits, rebates, and reduced registration fees are encouraging consumers to make the switch. Additionally, many cities are investing in charging infrastructure, making it increasingly convenient for EV drivers to recharge their vehicles.
With the prices of EVs lowering, more nations will soon become cost competitive thanks to policy pushes from China and Norway, but given the gravity of the climate situation, those governments shouldn’t wait for this to happen. Electric vehicles can benefit many emerging nations economically and environmentally, even if not all of them are as affluent as Norway or possess the same level of market dominance and political system as China.
With the government’s recent measures, the electric vehicle (EV) sector in India, in particular, is expecting tremendous development. Measures like the investment of appx $5.8 billion (INR 40,000 crore) for EV infrastructure, the reduction of GST on EVs, and the introduction of a voluntary scrappage program to stimulate the adoption of EVs, the Union Budget 2023 has shown great support for the EV sector. These programs will support the use of greener energy sources in India, lower the cost of EVs, and provide a reliable charging infrastructure.
Global Adoption Trends:
Now, let’s take a closer look at the global landscape of electric vehicle government policies and adoption.
1. China’s Electric Revolution:
China leads the world in electric vehicle adoption, spurred by a combination of government support, a robust charging infrastructure, and a growing awareness of environmental issues. The country is not only the largest market for electric vehicles but also a major player in electric vehicle manufacturing.
22% of passenger vehicles sold in China in 2022 were all-electric, which adds up to 4.4 million sales. That’s higher than the 3 million EVs sold in the rest of the world combined. Interestingly EVs scored more than 776,000 sales in the month of August 2023, up 22% year over year (YoY), which is this market’s second record month in a row. And expect the last quarter of the month to continue this record streak. The September sales pulled the year-to-date (YTD) tally to over 5.4 million units. Its expected to close by 40% growth in 2023 December.
China’s support for EVs has helped drive down battery costs and make EV adoption easier all over the world.
In China, December 2022 saw the end of the national NEV subsidy scheme, originally aimed for phase-out two years earlier, and following a gradual reduction of national subsidies for NEV purchases since 2017. Meanwhile, with a sales share of almost 30% in 2022, China’s NEV market has surpassed the country’s target of a 20% sales share by 2025. The extended vehicle purchase tax exemption for NEVs will remain as the main national-level financial incentive until the end of 2023.
Moreover, road transport electrification is stated as a goal in multiple guiding strategies. To reduce air pollution, China aims to reach a 50% NEV sales share by 2030 in its “key air pollution control regions”, which combined account for nearly 80% of China’s car market. In addition, China’s national action plan to reach carbon peaking before 2030 sets out a target for the sales share of NEVs to reach around 40% by 2030.
2. European Momentum:
European countries are embracing electric vehicles with fervor. Countries like Norway have set ambitious targets to phase out traditional combustion engine vehicles, offering substantial incentives to EV buyers. Battery electric vehicles (BEV) accounted for a record 21% of all new car registrations in the European Union (EU) in August 2023.
The BEV share has surpassed 20% for the first time and is nearly twice as high as it was at this time last year 2022 (11.6%). With the exception of Malta, every nation in the EU had a double- or triple-digit percentage increase in BEV registrations since the year’s beginning, reaching 165,165 units.
The country with the most growth, Belgium, has increased by an astounding 224.5% so far this year. With a 170.7% growth, Germany, the largest market for electric cars in the EU by volume, is closely behind. Since the year’s beginning, about a million new battery-electric vehicles have been registered. The European Union’s commitment to reducing carbon emissions is propelling the continent towards widespread electric vehicle adoption.
In March 2023, the European Union proposed the Net Zero Industry Act, which aims to meet 40% of the European Union’s needs for strategic net zero technologies with EU manufacturing capacity by 2030. These technologies explicitly include battery and storage technologies, and for batteries the aim is for nearly 90% of the European Union’s annual battery demand to be met by EU battery manufacturers, with a combined manufacturing capacity of at least 550 GWh in 2030, in line with the objectives of the European Battery Alliance. These announcements came just as CO2 standards for car sales over 2030-2035 tightened under the Fit for 55 package.
3. United States Acceleration:
In the United States, the adoption of electric vehicles is rapidly gaining traction. With major automakers investing heavily in electric vehicle production, and the Biden administration’s push for green infrastructure, the U.S. is on the cusp of a significant electric vehicle revolution.
Electric vehicle sales are expected to hit a record 9% of all passenger vehicles in the U.S. this year (2023), according to Atlas Public Policy. That will be up from 7.3% of new car sales in 2022.
It will be the first time more than 1 million EVs are sold in the U.S. in one calendar year, probably reaching between 1.3 million and 1.4 million cars, the research firm predicts.
The Inflation Reduction Act (IRA), passed in August 2022, includes various tax incentives and funding programmes to meet the aim of building a clean energy economy. Part of the Act concentrates on accelerating EV adoption, with dedicated funding drawn from the USD 369 billion allocated for climate investments.
The Clean Vehicle Tax Credit introduces a new set of conditions for EV models to qualify for incentives. From 2023 onwards, these conditions stipulate that final assembly must occur in North America, and that vehicles must have a 7 kWh battery or greater (to exclude low-range plug-in hybrid electric vehicles [PHEVs]), be under 6.35 t gross vehicle weight (GVW), and have a suggested retail price of less than USD 80 000 for vans, SUVs and pickup trucks, or USD 55 000 for other vehicles.
4. India’s late push on EV showing steep growth:
India’s EV sales grew from 0.4% to 1.5% in just one year from 2021 to 2022. That’s about three times faster than the global average, which took three years to grow from 0.4% EV sales in 2015 to 1.6% in 2018.
70% of tier-one Indian car consumers state that they’re willing to consider an electric car for their next vehicle, as compared to the record-high global average of 52 percent.
Recently in the 63rd SIAM Convention, Kamran Rizvi, Secretary, Indian Ministry of Heavy Industries told Economic times – “India will be a global giant in all sectors of electric vehicles (EVs) by 2030. In 2-wheelers, it will be much earlier.”
On subsidies, Rizvi said that India is continuing to spend more money to support the EV industry while most other countries like China, and the UK, are withdrawing or reducing EV subsidies.
More so, the ambitious endeavor of USD 5.8 billion investment that India under Mr. Modi, as previously mentioned in the article, aims to dot the landscape with public charging stations every 25 kilometers on highways and a mere three kilometers apart in cities and towns.
The Indian PLI (Govt scheme) on Advanced Chemistry Cell (ACC) Battery Storage was announced in late 2021 with the aim of boosting domestic battery manufacturing with a budget of INR 181 billion (Indian rupees) (USD 2.2 billion). Specifically, the government aimed to reach a cumulative 50 GWh in domestic manufacturing capacity by allocating funding to companies based on the sales of batteries manufactured in India, disbursed over five years, and dependent on meeting a domestic value-add of at least 25% in year 1, increasing to 60% in year 5. This is particularly ambitious given that there is currently no significant domestic battery cell manufacturing in India, and the 50 GWh figure is 50% greater than anticipated domestic demand as projected in the IEA Stated Policies Scenario (STEPS) in 2025.
Closing Thoughts:
As electric vehicles become an integral part of our roadways, the benefits extend far beyond individual drivers. The global adoption trends underscore a collective commitment to a cleaner, greener future. With each electric vehicle on the road, we are not just traveling; we are driving towards a more sustainable tomorrow, where the journey is as important as the destination. So, buckle up, charge up, and let’s pave the way for a cleaner, brighter road ahead!
