120 New EVs to Hit the Market Even Though No One Will be Charging Out to Buy Them
Why would automakers expand a line of vehicles for which demand is virtually non-existent? That is the current situation with EVS. Over the next 18 years, fewer than 10 percent of vehicles sold globally will be battery powered. The United State’s contribution that number will be a little over 2 percent.
Despite the low consumer demand auto builders are going all in on electric vehicles. In the next half decade, global markets will see over 120 new EVs. Here in the states, 75 new battery-powered cars will be available. So why would companies like Ford and Toyota build more of something that 90 percent of their consumers don’t want?
There is an old adage, “Nothing succeeds like success”. While other EV lines are seeing near negative sales, Tesla’s shareholders are seeing a positive gain. Tesla is a much smaller company than Ford in every respect. Yet, this year Tesla stock achieved a 55 percent higher increase in value than Ford stock.
Other auto executives apparently see Tesla’s success as a sign the EV’s are the wave of the automotive future. The reasoning seems to be that if consumers want Teslas they will want other manufacturers EVs as well.
Another reason for this holus-bolus approach to building rechargeable cars might be that they are becoming cheaper to build. Lithium-ion battery packs prices are decreasing. The cost of battery packs is down 25 percent from what they were last year. The theory is cheaper batteries could spark greater consumer interest in EVs.