The huge popularity of Tesla and other Electric Vehicles (EV) in UAE is an indication that EVs may take over sooner than we think. Although this may sound like an exaggerated clairvoyance, a close examination of the ground reality will assure the naysayers.
Global EV sales grew by 43% during 2020, with 10 million electric cars on the world’s roads according to the International Energy Agency (IEA). The year 2020 was a pivotal year for the electrification of transportation with sales of EVs being 4.6% of total car sales around the world. Along with new models, initiatives for critical battery technology were launched. All this progress has occurred during the pandemic and its related economic downturn.
The UAE has made remarkable decisions to transition to green mobility, in alignment with its Clean Energy Strategy 2050 that aims to increase the contribution of clean energy by 50% and reduce carbon emissions by 70%.
Many industry analysts believe that a tipping point is approaching where mass adoption of EVS will outrun conventional cars and the change is likely to occur sooner than expected.
Here are my 5 top reasons that make me believe in EVs rapid growth:
Technology Advancement (Battery)
Manufacturers have made substantial advances in the chemistry of their batteries, switching from expensive cobalt-based lithium-ion cells towards nickel-based systems. The shift in battery cathode design has ensured higher energy density, longer battery life and has lowered the cost. As battery technology evolves continuously, EV drivers will soon be able to travel a hundred miles on charge of a few minutes and will face no problems of degradation over time.
Stricter Regulations on Emissions
The imposition of CO2 emissions limits for vehicle manufacturers in the EU has compelled traditional car companies to begin switching to EVs to avoid heavy fines. In addition, around 20 countries have brought forward a ban on the sale of petrol/ diesel vehicles and mandated all new sales to be zero-emission vehicles (ZEVs) at the end of 2030. China has set a goal of over 50% EV sales by 2030, making clear their carbon-neutrality ambitions.
Higher Incentives by Government for EV Deployment
Governments worldwide have deployed a range of fiscal incentives to encourage the take-up of EVs, underpinning the scale-up in EV manufacturing and battery research. The measures – primarily purchase subsidies, or vehicle purchase tax rebates and free charging infrastructure– were designed to drive the adoption of EVs. New Zealand announced a cash rebate scheme on the purchase of EVs and unveiled a $8,600 subsidy for new vehicles. The US has set aside $7.5 billion for building its EV charging infrastructure. A discount of $3,480 on new EVs under $48,670 has been offered by the UK Government. The UAE government has provided free charging for non-commercial EV owners until the end of 2021, likely to be extended.
User Acceptance Increasing Due to Environmental Concerns
The transportation industry is the major contributor to greenhouse gas emissions and the resulting global warming crisis. Relying on power, EVs have brought sustainability aspect into transport by eliminating reliance on oil-based fuels. The growing awareness about air pollution has fueled people’s desire to swap their old car for an electric one and be a part of the clean energy transition. Full battery EVs (BEVs) and plug-in hybrid electric (PHEVs) have been widely accepted for their zero tailpipe emissions.
Lowering Cost of Ownership
The cost of owning EVs are getting closer to parity with conventional cars, in line with growing evidence that EVs are far cheaper to operate in terms of total costs. This is attributed partly due to the price difference between electricity versus fuel, along with low maintenance. The simple fact that EVs have fewer moving parts than internal combustion engines lower maintenance costs. As breakthroughs in battery technology and mass manufacturing emerge, the upfront costs of ownership go down further.
Let me know if you believe in the EV revolution and its scorching pace. Do you see challenges that can stall this acceleration?
Managing Director- Electric Way