Electric Vehicle Revolution: Industry

It has become clear that since the beginning of the new millennium there has been a shift in the automotive industry. The first big change came when the assembly line was created leading to more vehicles on the road for much cheaper. Then there was the electronic fuel injection which improved vehicle’s engine efficiency. Now, since the start of the 2000’s, the newest big wave in the auto industry is electric vehicles. We have seen this shift coming for a while, from the introduction of hybrids to touch screens being standard equipment, you would be naive to think it’s a passing fad. Both the businesses and consumers are pouring money into these new vehicles because they understand that now is the time to go electric!

Growing Investments by International Brands
Over the course of the next 20 years you will begin to see a lot more electric vehicles on the streets and this can be seen now with the investments that are going into this technology today. It isn’t a secret that the heavy hitters in the business are dumping billions of dollars into the electric market to not only keep up with their consumers needs, but also because of pressure from the government. Ford for instance is investing $11 billion by 2022 to convert 40 of their models to either be hybrid of fully electric. It isn’t just Ford that is pouring money into these vehicles; Mercedes looks to spend $11.7 billion to try and have 10 purely electric vehicles and 40 hybrids while Volkswagen looks to invest $40 billion by 2030 to build electric versions of its 300-plus global models! According to Bloomberg’s “Electric Vehicle Outlook” they are projecting that by the year 2040 55% of all new car sales and 33% of the global fleet will be electric compared to the current less than 1%.

This is not only going to increase the output of electric vehicles on the road but also increase the amount of money being pumped into this market as well. Within the next ten years the global electric vehicle market is going to increase to $912 billion. With this amount of money being spent on the production of electric vehicles, it is obvious that there is a ton of business opportunity as well. According to Reuter the electrification of vehicles has attributed to the creation of 250 startups that are attracting more than $20 billion in venture capital. On top of these, there are an additional 50 electric vehicle startups that are trying to strike while the iron is hot and while people are still dumping money into this industry.

If you personally are still not a believer in the electric vehicle movement let the money give you all the proof you need. Hundreds of billions of dollars are being poured into producing and improving electric vehicles, if these big companies like Ford and Volkswagen did not believe in this movement than trust me, they would not be putting tens of billions of dollars on the line trying to beat out their competitors. Not only are the big companies spending money on electric vehicles but you can see for yourself the staggering increase of electric vehicles hitting the road everyday on your commute to work. A few snowflakes are beginning to turn into an avalanche; a small trend turning into an entire industry of its own and is beginning to make headway as the future of transportation.

Check out the rest of this series to find out how your shop will be affected by this new wave of vehicles.