#37 – Inside Our Industry – EVs by the NumbersPosted on
Every day it seems new information comes out on electric vehicles and what the future holds for drivers around the world. The following comes from IndustryWeek.com.
EVs by the Numbers
Peter Fretty | Feb 16, 2021
The announcements are impressive.
GM is on its way to an all-electric future, with a commitment to 30 new global electric vehicles by 2025. In addition, GM aspires to eliminate tailpipe emissions from new light duty vehicles by 2035.
Of the 40 electrified vehicles Ford plans for its global lineup by 2022, 16 will be fully electric and the rest will be plug-in hybrids. On Feb 4, 2021, CEO Jim Farley said, “We’re now allocating a combined $29 billion in capital and tremendous talent to these two areas, and bringing customers high-volume, connected electric SUVs, commercial vans and pickup trucks.”
But, why are the automakers seemingly hot on the future of electric vehicles?
Let’s look at the numbers.
Although a 2019 survey of 1,000 drivers conducted by Castrol show that 60 percent are taking a wait-and-see approach to making an EV purchase, across the board industry projections reflect that consumer acceptance is growing.
And automakers are listening with plans to have 500 different EV models available for purchase by 2022. Currently, there are 300 EV and 150 hybrid models available.
According to Deloitte Insights, the share of new car sales taken up by EVs will vary considerably across markets with China forecasted to realize domestic market share of around 48% by 2030 – almost double that of the United States (27%), and Europe should achieve 42%. In its Electric Vehicle Outlook, Bloomberg-NEF anticipates EV market share of new car sales will hit 58% by 2040.
The long-held concern of range anxiety ultimately points to the need for stronger charging infrastructure often surfaces as a concern. However, numbers paint a different story.
After all, according to US Department of Energy, most (80-90%) EV owners are either charging their vehicles at home overnight or during the day at work. A trend few experts anticipate changing even as market penetration climbs. This process only requires slow level 1-2 chargers.
At the same time, with battery innovations now offering similar milage to the internal combustion engine, the range anxiety for long distance travelers or road-trippers is fading fast. Specifically, depending on battery configurations, the latest EVs can travel between 300-500 miles on a full charge.
But from a consumer standpoint how do these costs vary from operating an ICE? A vehicle averaging 10,000 miles per year, away-from-home charging will likely amount to roughly $300 per year, compared to at least $1,500 spent at the gas pump today. This PwC estimate assumes that 80 percent charging will take place at home or work.