Why the electric car industry is struggling in 2020

With news that Ford’s Bridgend plant is set to close anytime, which will occasion the loss of close to 2,000 jobs, this is just one of the blows that the car industry has had to deal with. Honda also announced that by 2021 it would close its Swindon plant, leading to a loss of 3,500 jobs. Nissan and Land Rover have also mentioned cutting jobs and production processes. These advancements come as car manufacturers struggle with various challenges while consumers are buying fewer and lesser cars. Worse hit is the electric car industry, in which several factors coupled with the pandemic, has seen it struggle throughout the year. Various online sites have given differing opinions behind the decline in the industry. One looking for resources that can help them understand this trend can visit ReviewsBird, where they will find platforms that may be helpful. This article also explores some of the reasons behind the struggle in the electric car industry.

1.  Having the right technology

One of the crucial aspects that electric vehicles require is the correct battery technologies. Though there are quick developments in charging and overall battery technologies, there is still great uncertainty in the area. With questions such as which charging technologies will be the gold standard being still a wonder. Charging is a specific concern, especially for individuals who live in houses and apartment blocks that lack private parking space. Should such individuals expect that charging points will be available along the street or at bollards? Perhaps at this time home charging will not work and in this case, drivers should use facilities such as their office, petrol stations, or empty supermarket parks at night. These, among other options such as induction pads that will be embedded in main roads to charge cars as they drive above them, are still being explored. Without any major great stride, this leaves the electric vehicle market in uncertainty.

2.  Change requires time

Some of the best selling cars worldwide are the all-electric tesla model 3.However despite enjoying such a huge success, this year, only 1.1 % of its new cars sold are electric. There’s also hardly any market for second-hand electric vehicles. In countries such as the UK, drivers take anywhere between one to fifteen years to change their automobiles. This being the case, not many individuals will be thinking of buying electric vehicle models anytime soon. There’s also a need to give more time as, for example, more charging stations are required. Also, fuel tax is an important source of government revenue. The fact that users of electric vehicles pay much lower rates insinuates a need for more multi-sectoral changes, including tax systems changes. If the electric vehicle market is to get a boom, it needs to convince businesses and individuals that the electric vehicles suit their needs, which has been perhaps the hardest part.

3.  Uncertainty on who will pay

Given that innovators can design the right charging designs, there remains the question of who will bear the installation costs. There is a great assumption that it will be the private sector’s responsibility to operate, build, and maintain most charging infrastructures. However, businesses have been sluggish in getting involved, which partly has been blamed on the fact that profit margins remain minimal and the government has subsidized heavily developing charging points. However, despite this being a challenge leading to the market struggle, it is slowly changing. Corporations such as Shell and BP have taken over leaders such as New Motion and Chargemaster, with Tesla also vigorously rolling out motorway service stations charging networks.

4.  The zero-carbon fantasy

This has led to the electric automobile market not doing so well, as even 100% electric vehicles don’t have a zero-carbon solution. These vehicles may not produce the typical exhaust emissions. Still, even if countries would adapt electricity from 100% renewable sources, which is not the case yet, the vehicles would still come at an environmental cost. Dismantling deteriorated batteries, sourcing minerals for used batteries, and processes of building and delivering the vehicle to clients globally all involve a substantial amount of carbon emissions. It may prove hard to break all these links, which have substantially slowed the year’s electric vehicle industry.

In conclusion, another factor that cannot be left out as far as the slowing down of the electric vehicle industry in 2020 is concerned is the lockdowns and curfews, among other restrictions due to the Coronavirus pandemic. With time, however, and with the much-anticipated resumption after successful management of the pandemic and the addressing of the other issues, it is anticipated that in the future, the e-vehicle market will boom, and sites such as Insure4aday can get to offer this new vehicle brands with their preferred insurance service.