Top 3 Factors That Affect The Demand For Electric Vehicles


The market for electronic vehicles is rapidly gaining speed, and almost every day record-breaking sales figures are achieved by companies. However, looking at the price of new electric cars, it is easy to understand that they cannot fit into the budget of every individual in the US. Fortunately, second-hand electric cars are available for purchase and are of course more affordable. 


MotorCloud is one such automotive search engine that enlists every car there is on the internet throughout the US. They can help you find the exact electric vehicles (EVs) that you desire. Also, you can compare models, make, and prices, and make informed decisions. All in all, buying and selling a car via them is a delightful experience. 


Factors that affect the demand for electric cars


  1. Requirement of low-efficient vehicles


Gasoline is one of the non-renewable sources of energy. It is expected to exhaust in near future, and this means developing such alternatives that support sustainable development is becoming inevitable. 


This includes using EVs. Electric cars and scooters do not use gas and are more economical compared to conventional vehicles. 


An electric car is expected to convert over 50% of electrical energy generated from the grid to power the wheels. On the other hand, gas-powered vehicles are only able to convert 17% to 21% of the energy of gasoline. 


Also, the demand for fuel-efficient vehicles is increasing because of the ever-rising prices of petrol and diesel. Fossil fuel reserves are depleting, and companies intend to earn maximum profits from their oil reserves. All in all, this situation gives rise to the demand for EVs in the market. 


  1. Reduction in the price of EV batteries


With technological advances, the production price of batteries used in EVs has reduced considerably. Also, as the demand for EVs increased, EV batteries started manufacturing on a mass scale and the manufacturing cost eventually dropped. Now, since EV batteries are one of the most expensive components of these vehicles when the price dropped, more customers were inclined towards EVs. 


In the year 2010, an EV battery approximately cost 1100 USD per kWh. The same battery cost approximately USD 137 kWh in the year 2020. These prices are expected to fall further by the year 2030, and as a result, the prices of EVs will reduce as well. 


  1. Government initiatives and policies concerning EVs


Countries around the globe have recognized the issue of vehicle emissions and have taken ample initiatives to reduce these emissions by 2030 to 2050. Governments are promoting the sales and use of EVs in the market in every possible way. They are even investing significant amounts in developing infrastructure that supports the use of EVs, this includes developing charging infrastructure. 


Furthermore, Government initiatives concerning EVs like zero registration fees, exemptions from import taxes, road taxes, and purchase taxes make switching to EVs much easier. All these steps undertook by different Governments around the world is sure to increase the demand for EVs in the coming decade. 


Lastly, if you are considering switching to an EV, be assured it is surely a better step to take. Of course, the initial cost of buying an EV might seem higher, but the overall cost of ownership will be lower compared to owning an ICE vehicle. Also, consider buying a pre-owned EV if you are on a budget.


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