The advent of Electric Vehicles (EVs) is revolutionizing the automotive industry landscape rapidly. According to Statista, between 2020 and 2026, the size of the global electric vehicle market is expected to increase over four-fold to reach an estimated global market size of approximately one trillion U.S. dollars by 2026.
Furthermore, per a McKinsey report, the largest automotive markets are expected to go fully electric by 2035. Naturally, the answer to; ‘Are electric vehicles the future?’ is a resounding yes!
In this blog, we cover everything related to electric vehicles – its meaning, types of EVs, significant benefits of switching to EVs, key factors leading to the growth of the EV market and its future. Let’s get started –
At a glance –
What Are Electric Vehicles?
Different Types Of Electric Vehicles
Significant Benefits Of Vehicles Going Electric For The Auto Industry
Key Factors Leading To The Growth Of The Electric Car Market
Future Of The Electric Vehicle Market
How RENTALL Supports The Growth Of The EV Market
First of all, what are electric vehicles?
In simple words, electric vehicles are vehicles that function by means of battery-operated mechanisms. As opposed to gas-powered vehicles that use internal combustion engines, electric vehicles are powered by electricity from an external battery and are capable of covering a specific distance at a single charge. After that, the batteries need to be recharged at private or public electric vehicle charging stations. Some remarkable features of electric vehicles include increased comfort, ease of use, better efficiency and their notable contribution toward a sustainable future.
Next, let us understand the different types of electric vehicles –
As such, electric vehicles are categorized into three main categories – Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).
- Battery Electric Vehicles (BEVs): These vehicles are solely powered by an electric battery and do not have any form of internal combustion engine (ICE) at all. In order to operate or cover substantially long distances, they need to be recharged at private or public electric vehicle charging stations at timely intervals.
- Hybrid Electric Vehicles (HEVs): These vehicles are powered by an internal combustion engine as well as an electric motor and a battery pack. Like regular ICE vehicles, they need to be refuelled regularly with gasoline to be able to function. As far as battery recharging is concerned, it is done automatically by regenerative braking.
- Plug-in Hybrid Electric Vehicles (PHEVs): Similar to HEVs, these vehicles too are powered by an internal combustion engine and an electric motor. However, they can operate solely on fuel as well as in an electric-only mode. When operating on an electric-only mode, PHEVs require a larger battery and at such times, they can be plugged into an electric power source to recharge.
Thereafter, let us learn about some of the significant benefits of vehicles going electric for the auto industry –
1. Convenience of Use –
Electric vehicles do not have a gearbox and are devoid of a clutch. This means that there are no complicated controls involved. The driver simply has to accelerate, brake and steer as required.
Moreover, EVs do not require regular visits to the fuel station as well. They can be recharged both – at home as well as at public electric vehicle recharge stations, whichever is more convenient.
As a result, EVs enable the automotive industry to provide consumers with an exceptional experience in terms of overall usage by employing the latest technological advancements in the industry.
2. Low on Maintenance –
As compared to ICE vehicles, the cost of maintenance for electric vehicles is significantly low. This is mainly because they do not have as many moving parts as an ICE vehicle that need to be serviced periodically. In addition to that, since they are powered by electricity and not gasoline, they do not require regular refuelling.
Taking into consideration the high fuel costs in current times, this undoubtedly results in a drastic reduction in the overall monthly operational expenses too.
Hence, while an initial investment in an electric vehicle may appear to be on the higher end, in reality, it offers a much greater return on investment in the long run.
3. Improved Efficiency –
In simple words, energy efficiency is the use of less energy to perform the same task or produce the same result.
According to the U.S. Department of Energy, electric vehicles convert over 77% of the electrical energy from the grid to power at the wheels while conventional gasoline vehicles convert only about 12% – 30% of the energy stored in gasoline to power at the wheels.
Obviously, EVs are much more energy-efficient and profitable to the mobility industry in comparison to traditional, ICE vehicles.
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4. Reduced Carbon Footprint –
Another remarkable benefit of vehicles going electric for the auto industry is the sizeable reduction in carbon footprint. Since electric vehicles run on electrically powered engines, they do not create any tailpipe emissions which are a major source of pollution across the globe.
Consequently, they do not emit any other toxic gases or smoke that could possibly harm the environment. Furthermore, the energy used to recharge the batteries for EVs can also be obtained through renewable sources like solar panel systems.
All in all, switching to EVs can prove to be a highly environmentally-friendly choice.
5. Enhanced Experience –
In addition to that, electric vehicles offer an outstanding user experience by providing an ultra-smooth ride and curbing noise pollution to a great extent. This is mainly because electric motors are much lighter and capable of offering a smoother drive with higher acceleration for long distances, compared to ICE vehicles.
In fact, electric cars are so quiet that they are now required by law to have an Acoustic Vehicle Alert System (AVAS) to emit a sound when reversing or travelling below 12mph, to ensure safety for pedestrians.
6. Tax and Financial Benefits –
Lastly, opting for electric vehicles can also prove beneficial from a financial point of view. Owing to its multifold benefits for the environment, various governments and companies are promoting EVs by developing favourable policies and offering different forms of incentives (they vary from country to country).
Early adopters of EVs can learn about the government offerings in their respective countries and use them to their advantage.
Now, after understanding the benefits of vehicles going electric for the auto industry, let us dive into the key factors leading to the speedy growth of the electric car market –
The magnanimous growth of the electric car market is mainly a result of 3 key factors, namely, technological advancement, evolving consumer preferences and favourable government regulations. These factors are explained in brief below –
1. Technological advancement:
Fast-paced, advantageous technological growth has played one of the most important roles in advancing the growth of the EV industry. By innovating a highly efficient, affordable and sustainable option for the automotive industry, it has truly revolutionized the mobility industry to a great extent.
2. Evolving consumer preferences:
Next, the growth of the electric car market is further fuelled by evolving consumer preferences. Consumers are now more aware and conscious of their choices and the consequences of their choices.
They understand the diverse benefits of making the switch to electric vehicles and are taking active steps towards the same.
3. Favorable government regulations:
Lastly, as mentioned earlier, various governments across the globe are promoting the adoption of electric vehicles by introducing favourable regulations and offering different forms of incentives, in order to take responsible steps towards a sustainable future.
This too is encouraging the growth of the EV industry to a great extent.
In conclusion, it is clear that the electric vehicle market is growing exponentially and is soon to transform every aspect of the automotive industry.
Future of the Electric Vehicle Market
Needless to say, owing to its varied benefits and remarkable contribution to a sustainable future, electric vehicles are accounting for an increasing share of sales in the mobility industry all over the world. In fact, reports claim that leading automobile companies definitely believe that EVs are the future of the industry and are heavily investing in them. Take a look at the statistics below –
- Jaguar will offer only electric cars from 2025
- Audi plans to go all-electric by 2026
- British sports car maker Lotus plans to go all-electric by 2028
- Volvo has committed to transitioning its entire model line-up to fully electric vehicles by 2030
- Cadillac aspires to be an electric-only brand by 2030
- Ford intends to go all-electric in Europe by 2030
- General Motors says it will make only electric vehicles by 2035
- Volkswagen expects more than 70% of its sales in Europe to be EVs by 2030 and so on.Taking into consideration how automobile companies across the globe are redefining their business models with sustainability as the core, it is safe to say that electric vehicles are going to completely disrupt the automotive market in no time.
How RENTALL Supports the Growth of the EV Market
At RENTALL, one of our core goals as a business is to help the automobile industry become more sustainable. As a result, we are extremely passionate about creating a platform that delivers the best results possible for any business looking to offer electric vehicle rental.
RENTALL’s electric vehicle rental solution is a cloud-based SaaS platform designed to automate fleet management.
The RENTALL platform has been designed with rental operators to ensure that all the necessary requirements are taken care of and is constantly developing to stay at the forefront of technology and industry trends.
Our electric vehicle rental platform comes with a range of benefits that include the following –
- Cloud-Based: Log in and manage your fleet from anywhere, anytime
- Alerts: Real-time alerts from customer inquiries to maintenance
- Mobile App: Manage your reservations from anywhere via iOS or Android
- Reservations Plugin: Integrate directly with your website to monitor all reservations
- Reports: Get detailed reporting on your business in real-time
- Customer Management: All customer information managed securely in one place
Over and above these features, we have 30+ add-ons available to maximize your performance, no matter what your business goals are. In short, from consumer car rental to commercial van rental, RENTALL has been designed to optimize all your operations.
To find out more about how RENTALL can deliver improved operational efficiencies, first-class customer service and increased profitability for your car rental business, get in touch with us here. Alternatively, you can also connect with us at +1 888 628 6827 or firstname.lastname@example.org for a consultation.