Electric vehicles are the future, but will you invest?

Recent studies have shown that consumers are increasingly interested in buying electric vehicles (or EVs).

Despite falling gas prices, every seventh North American sees an electric car as their next purchase. What is more impressive is that in this study, EVs would only lose to pickup trucks, which is a goal of the next purchase for every sixth Canadian.

Millennials are more likely to buy an EV

What caused such interest in the still young but fast-growing category of vehicles?

Primarily, this can be explained by the increased interest from millennials. Every fifth representative of the young generation is planning to buy an electric car. It is a more environmentally friendly and nowadays, global warming is an important factor in choosing the next vehicle for people between 20 and 30.

In recent years, especially due to the Tesla progress, these cars are giving people increased confidence for a very picky buyer. The company recently set a record for the distance travelled on a single charge (1078 km). That should remove all doubts about the longevity of the electric vehicle’s batteries. Also, these cars use more modern methods to improve and prolong the life of the vehicle (such as updates over-the-air through the Internet). Moreover, they provide more comfort compared with the competitors in the same category.

In the last five years, gas prices have fallen by 40-50%. So, the interest for many experts became a big surprise. Many assumed that as the gas price lowered, there would be an increased demand for petrol cars, but then other factors started to play an important role as well.

For 70% of consumers, fuel economy is the biggest concern and an important factor when selecting a vehicle. Right now, this factor is just as important as crash rating, price, and performance. Next on the list are the presence of ABS (50%), vehicle brand (48%), design (46%) and smartphone connectivity (34%).

Pitfalls and things to improve

However, the purchase of electric vehicles also has its pitfalls and buyers are well aware of them. More than half of the respondents fear that the battery of their vehicle will run out of power at the most inopportune moment. Although many studies have shown that the average resident of North America commutes every day within EV battery range, this is not entirely accurate. More than 25% of people believe that the petrol powered engine is more secure than EVs battery and that the EV battery works on the same principle as a conventional battery. Therefore, it could explode when overheated.

What’s next?

Despite the presence of prejudice from the majority of people, many manufacturers think otherwise. Companies in the coming years are planning to produce only electric vehicles (like Volvo). Others have plans to increase their production of EVs up to 50%. Some countries are keeping up with the progress as well. Norway and Sweden, for example, are planning to prohibit the use petrol vehicles by 2025 and to switch over to EVs entirely.

Either way, it appears that manufacturers of EVs are moving in the right direction. Companies like Tesla can arouse the interest of young people by the adaptability and security of their vehicles.

All these factors give us clues that in the next ten years, 50% of the market may be saturated with EV cars and the era of gasoline cars, after a very good run, will be left behind.

By | 2017-09-07T17:24:37+00:00 September 7th, 2017|The411|

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