The investments till now by the United States automakers are $19 billion, $21 billion in China, and $52 billion in Germany. As the companies are gearing up to see how the sales number pops for the electric vehicle. Each country is pushing its policy to limit the development of the combustion engine.
The electric or the hybrid vehicle has not yet eased out the automobile industry’s nerves. The market is still unexpected. With high investments, the expectation of the market is also raising high.
As per Daimler AG Executive Dieter Zetsche, “We will see whether demand will drive our (electric vehicle) sales or whether we will all be trying to catch the last customer out there.” “Ultimately, the customer will decide.”
The statement is always a stress headache for sales in the automotive companies and the stock market. The electric vehicle did create a rage among the consumer but how long the loyalty sustains for the alternative drive is yet to be seen.
As per Toyota Motor Corp’s North America, Chief Executive, Jim Lentz, 18 years for the hybrid vehicles to reach a 3 percent share of the total market. Even though hybrids are not expensive. The need for a new charging infrastructure is not needed. The vehicle is also not bound by the battery range limits.
His opinion, “What’s it going to take to get to 4 to 5 percent” share for electric cars, Lentz said. “It’s going to be longer.
As we can see from the opinions and concerns of the higher authorities in the automotive industry, the ban on the combustion engine vehicle may alter the story. Somehow, the authorities are forcing the electric vehicle more than even the needs generated by the customer.
As for the current trend, a market where policies or different pushing enforcements by the countries are redirecting the question of the authoritative powers playing than the need. Yes, it has been seen that electric vehicles are effective in counteracting the CO2 emission but the arguments of its battery production and other issues cannot be neglected.
The market also can be seen as becoming a power play by the forces and also the political pressure than what the consumers are prepared for. The need and the demand are somehow overlapping with the authoritative pressure and policies.
The countries with their restriction policies but not yet been implemented:-
- In Copenhagen, Danemark, new diesel cars are banned from entering the Danish capital.
- In Rome, Italy, diesel cars are banned from entering the city by 2024.
- In Norway, No new gasoline or diesel vehicle sales by 2025.
- In Athens, Madrid, and Mexico, ending the use of diesel cars by 2025.
- In Paris, diesel cars are banned to enter the city by 2025. The remaining internal combustion engine vehicles by 2030.
- In Ireland and India, no new gasoline or diesel vehicles by 2030.
- In Israel, Ban on the import of gasoline and diesel fuel cars by 2030. Only natural gas or electric vehicles are allowed.
- In Brussels, Belgium, diesel vehicles are banned by 2030.
- In the Netherlands, vehicles are emission-free by 2030.
- In France, no new gasoline or diesel vehicle sales by 2030.
- In the UK, conventional petrol, diesel cars, and vans are not sold by 2040. The national vehicle emissions are reduced to zero by 2050.
- In Taiwan, non-electric motorcycles are banned by 2035 and also the four-wheel vehicles by 2040.
- In Germany, banning new diesel cars is soon to be expected.
- In US states, national vehicle emissions are reduced to zero by 2050.
Something should not be supported. The complete ban of a vehicle and forcing the consumer to use the electric vehicle is the movement of political enforcement rather than providing the freedom of choice. The restrictions and bans can be altered with a timeline.
The focus of the market has become more on selling the EV rather than investing in finding resources to make it cheaper or at least equivalent to combustion engine vehicles. Even though the fuel o the road is not expensive but forcing a person to change without navigating other possibilities is creating a different market scenario altogether.