How Electric Vehicles are Changing Our Future

With the rise in global concerns about climate change, technological advancement, and the surging oil prices, the world is warming up towards a shift in overdependence on fossil fuels. Several countries around the world are acknowledging the need for sustainable and eco-friendly solutions to mitigate climate change. The automobile industry is among the sectors where this change is much deserved, and with the look of things, non-liquid fuels like natural gas and electricity are turning out to be the remedy for the menace in the transportation sector.

The invention of electric cars was more of a series of discoveries and inventions which started back in the 1830s when a Hungarian inventor, Anyos Jedik developed an early electrical motor. Various individuals and automobile companies continued to conduct multiple experiments with this new technology, and it was not until the mid-1990s when General Motors developed the first mass-produced, modern-age electric car known as the EV1. Fast forward to 2008, Telsa Motors produced a revolutionary electric car (the Roadster) which is the only vehicle of all-electric cars developed before that manage to travel more than 320 kilometers per charge, and reach an incredible top speed of 200km/hr.

Although electric cars still make up an insignificant percentage of worldwide vehicle sales, there is a growing global movement that seeks to put to bed the reliance on internal combustion engines. Some of the major automobile companies in the world including Toyota, Volvo, PSA Peugeot Citroen SA, Renault, BMW, Nissan, Volkswagen and Ford among many others have made significant investments to add new electric vehicle models into their portfolios.

Add the states and cities that have pledged to phase out gas and diesel vehicles from their roads in the next few decades into the picture, and you will understand how impactful the electric cars will be in future. Norway is leading the way with electric car sales accounting for more than 30% of all sales. Other countries that are committed to weeding out the fossil fuel-powered vehicles from their roads include China, UK, Netherlands, India, and France among others.

A Sneak Peak of How EVs Operate

Unlike the contemporary fuel-powered engines, an electric car is propelled by an electric motor (s), which draws energy from rechargeable lithium batteries. Motorists are supposed to carry portable EV charger which they can use to charge their automobiles in the vast EV charging networks on the streets. While the EVs have proven to be cost-effective and eco-friendly, one of the biggest challenges is the unavailability of enough charging stations for those driving for long distances.

How the Electric Cars are bound to Change Our Future

Disruption of the Oil Industry

With various countries and states pledging to halt the production of gas and fuel-dependent vehicles by 2050, studies indicate that this will have pervasive economic effects on major oil-producing countries in the world (https://tonyseba.com/portfolio-item/rethinking-transportation-2020-2030/). Top oil exporters in the world including Saudi Arabia, Nigeria, Russia, and Venezuela will feel the greatest pinch. On the other hand, countries that produce lithium, cobalt, nickel, and cadmium such as Chile, Australia, Canada and Brazil among others, will start experiencing continuous economic growth. However, the impact will not be as robust as the oil industry since the politics of lithium and other components used to make batteries is entirely different from that of the former.

Impact on Jobs

While electric vehicles come with loads of benefits, they are less labor-intensive than fuel-operated automobiles during the manufacturing stage. Additionally, most of the processes involved in the development can be automated. For these reasons, it is estimated that the phase-out of combustion engines is bound to see most people lose their jobs. According to Info Economic Institute, Germany alone could see more than 600,000 people lose their jobs (http://www.cesifo-group.de/ifoHome.html).

Impact on Various Economies

If the ban on fossil fuel-dependent automobiles by various states and countries is achieved, the revenues generated by multiple governments from petroleum and oil products will plummet significantly. Countries that rely heavily on oil-related taxes will have to come up with new ways to boost their revenues. For example, the US government could lose up to $50 billion from petrol taxes if they fully adopt electric vehicles (https://tonyseba.com/portfolio-item/rethinking-transportation-2020-2030/)

What the Future Holds

While details are still sketchy regarding the level of commitment on the part of countries that have pledged to align their future transportation plans to electric vehicles, some of them have come out strongly to support the shift.

For instance, according to the Norwegian government, the electric car sold by Dec 2018 accounted for up to 30 percent of all vehicle sales. This has been achieved through various incentives which include exemption of electric vehicles from value-added tax, traffic insurance tax, one-off registration tax and leniency on a myriad of other restrictions. Conversely, China is following suit with one of its technology hub, Shenzhen leading the way with a vast array of electric vehicles including buses.

Final Verdict,

Although the insignificance of electric vehicles in the global automobile market today make it hard to predict the potential disruptions it will bring, the early adopters are showing no signs of slowing down. Therefore, it is imperatives that governments, auto manufacturers and the key-stakeholders in oil industry make some tough decision that will allow them to move with the wave of electric vehicles.

What do you think?

I’d love to hear what you think.

Let me know by leaving a comment below right now.

5 Comments

  1. julia87
    julia87
    , 2019-02-22

    Great read! Point of discussion for everyone. What guys got you really hooked into EV? I for one believe in the future of EV, it’s just the way it is. Better technology comes along and it replaces most of our systems. This is pretty cool and I’m enjoying learning about EV.

  2. cheskaj
    cheskaj
    , 2019-02-22

    Great! Thank you for spreading the knowledge and educating the people on the power of electric. It’s time we take higher steps and make greater efforts in taking care of our world. Imagine the high emissions fuel cars make and how much lesser to none it would be with the rise of electric. Change is now!

  3. rosiee007
    rosiee007
    , 2019-02-11

    I think that there is still a long way to go before every household owns EVs to affect and disrupt the oil industry. Apart from its use in vehicles, there are so many more uses of oil in other industries.

  4. laurenh
    laurenh
    , 2019-02-10

    Thanks for including such a comprehensive vision of how electric vehicles are going to impact our future because I think there is a tendency to focus on one specific issue and not consider everything that’s going on. I had no idea that it might actually cause a decrease in jobs

  5. Grace Smith
    Grace Smith
    , 2019-02-10

    Electric cars are such a cool new concept and invention. Maybe one day I’ll finally have one. I love how they are so much better for the environment and can help us create new businesses and jobs.

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