Big Valley Auto Auction Blog

The Rise of Electric Vehicles in the Automotive Industry

Written by Victor H. | Mar 25, 2024 3:00:00 PM

In 1981, the very first laptop was released to the market. It was designed for personal use, but many thought they would only be popular with a specific audience, such as the military, accountants, and traveling salespeople. In 1985, The New York Times predicted laptops would eventually die off. More than 40 years later, laptops have changed their industry. This is similar to electric vehicles entering the automotive industry as an innovative product.

 

Since 2008, Big Valley Auto Auction has had thousands of vehicles run through our lanes. However, just like the rest of the world, we were surprised by the rise in popularity of electric vehicles. But how long will their popularity’s battery life last?

 

In this article, you’re going to learn what electric vehicles are, how they became popular, how they impact the automotive industry, the pros and cons, and predictions for the future.

 

After reading this article, you’ll have the information needed to prepare for the future of electric vehicles.

 

What Are Electric Vehicles?

An electric vehicle (EV) is a vehicle powered by an electric motor, instead of an engine. Unlike traditional cars, EVs do not use gas. EVs run on electricity and can be charged at charging stations.

 

When Did Electric Vehicles Become Popular?

Believe it or not, the very first electric car was invented in 1832. However, they didn’t gain popularity until 1900. Electric cars made up 1/3 of all vehicles on the road in more expensive places like New York. By the late 90s to 2010, almost every carmaker was experimenting with electric cars. Tesla succeeded in 2012, and by 2015, a majority of carmakers had already released their own electric car. In 2023, a record 1.2 million EVs were sold in the United States.

 

How Do Electric Vehicles Affect the Automotive Industry?

Just like laptops revolutionized the computer industry, EVs have done the same to the automotive industry. The high demand for electric vehicles has forced many car manufacturers to adapt. If carmakers don’t adapt, they could fall behind and lose their customers to their competitors.

 

EVs cost of production also affects the auto industry. As technology advances, the cost of battery production and vehicle assembly decreases. This could lead to manufacturers investing more into electric vehicles.

 

What Are The Pros and Cons of Electric Vehicles?

Just because a product has been updated doesn't mean it is perfect now. Here are the pros and cons that come with electric vehicles.

 

Pros

  • Environmentally friendly
  • Lower operating costs
  • Home charging 
  • Government incentives

 

Environmentally friendly

Electric vehicles don’t produce emissions, which helps reduce air pollution.

 

Lower operating costs

EVs usually have a lower operating cost than traditional vehicles with an engine. Electricity is cheaper than gasoline and diesel, and they contain less moving parts than normal cars, which leads to less maintenance costs.

 

Home charging

You don’t have to go to the gas station to fuel your car. If you have an electrical outlet or your own charging station, you can charge your vehicle from home. (If you’re someone who’d rather leave the gas station when the gas pump says “Please see cashier” instead of interacting with the cashier, then this might be good for you.)

 

Government incentives

Many governments offer incentives, such as tax credits, rebates, or subsidies, to encourage the adoption of qualifying electric vehicles.

 

  • New electric vehicles purchased before 2023 could get a tax credit of up to $7,500. However, the amount depends on battery capacity and manufacturer phase-out.

 

  • Used electric vehicles purchased from a dealer for $25,000 or less could get a credit of $4,000. (Other requirements apply)

 

  • New electric vehicles purchased in or after 2023 could get a tax credit of up to $7,500.

 

Cons

  • Limited range
  • Long charging times
  • Charging availability
  • Battery degradation

 

Limited range

Similar to a laptop’s battery life, an EV's battery life is limited. This could be a concern for long-distance travelers in areas that may not have charging stations. This has also been said to cause “range anxiety” which is the concern about the distance an EV can travel on a single charge, and the fear of getting stranded during the journey.

 

Long charging times

The average fill-up time for a gas powered vehicle is about 2 minutes. It could take 30 minutes or up to 12 hours to charge an electric car, based on the size of the battery and speed of the charger.

 

Charging availability

When you’re on a road trip, you’ll cross a gas station every 10-15 minutes. However, there are not as many EV charging stations available. If you’re driving an electric vehicle, you’ll find that charging stations are far apart, depending on the area. 

 

Battery degradation

The performance of an EV's battery may degrade over time, due to frequent charging and exposure to extreme temperatures. These factors could reduce a vehicle’s lifespan, as well as its resale value.

 

Who are Electric Vehicles Best For?

Electric vehicles aren’t for everyone. Here are some types of people who could benefit from using an EV.

  • Environmentalists
  • Commute workers
  • Tech enthusiasts
  • Cost-conscious buyers

 

Environmentalists

People who prioritize reducing carbon emissions and protecting air quality.

 

Commute workers 

People who mainly travel within a short distance can benefit from the lower operating costs.

 

Tech enthusiasts 

People who are interested in the latest technology could want to be a part of this innovation in the automotive industry.

 

Cost-conscious buyers

People looking to save money on fuel and maintenance costs over the lifespan of a vehicle can benefit from lower operating costs compared to gasoline-powered cars.

 

Are Electric Vehicles Here to Stay?

In 2023, General Motors announced that by 2035, they plan on only selling electric vehicles. If the largest automaker in the United States makes a huge decision like that, it might be safe to say that electric vehicles are here to stay and continue to grow as technology advances. 

 

If you’re new to the automotive industry or unfamiliar with electric vehicles, you can use this article as a study guide to help you prepare for the continued rise of EVs.

 

Electric vehicles are only 1 advancement in the auto industry. You can click the banner below to learn about the use of artificial intelligence in vehicles.