Impact on the global economy is undeniable but will this slow sale of EVs?
Electric vehicles had been growing massively in popularity before the pandemic struck. There was a lot of pressure on manufacturers to roll out new electric models to compete with Tesla and other more established automakers. However, this unprecedented and crippling virus has changed everything for not only those in the market for a vehicle but also the general public of many countries. This article will examine what will happen once the infection rate and deaths begin to drop off, for China this is already happening so their economy may provide a microcosm of what’s to come for other economic superpowers.
Can electric cars replace gas?
Definitely but there will always be a market for gasoline, for the purist and those who own antique or classic cars. What has recently changed is the timeline for electric to replace gas. The appeal of lower cost has been a factor in the switch to electric for many but now with low gas prices this transition may be drawn out by another five years.
With continued improvements to internal combustion engines, increased fuel efficiency and less emissions we do believe that they will hold market share for up to another fifteen years making 2035 a target date for electric vehicle ownership to take the lead.
What would happen if we all switched to electric cars?
Auto companies could not handle a rapid transition to electric and supplies of the required materials to make electric motors and high capacity batteries would run dry. This would only push the cost up rapidly, so a slower transition to electric is favourable for the economist anyways.
For the environmentalist, the transition cannot happen fast enough. A reduction in greenhouse gas emissions will be felt from the depression that COVID-19 is creating. In combination with those who are already driving electric vehicles and electrification of mass transit, carbon footprints worldwide are making a difference. Take a look at Europe where the drop has now been documented:
What about the purist who will never switch to an EV?
This is your time, gasoline prices will reach lows only seen after the great recession and as demand inevitably continues to decline, these cost savings will net you thousands. For 2020 and into 2021 demand for gasoline will continue to slump but this will leave a large supply for combustion engines so it may not be a bad idea to stock up!
Auto Blog Online’s take on the impact of coronavirus
We give great thanks the health professionals and essential service employees for their commitment to keeping the global economy alive in this troubled time. We do not hold a crystal ball about what may happen in the future so as always, take our writings with a grain of salt. One thing that is certain will be a recovery from the coronavirus which may take years but with the support of governments and unity of the public it’s a process we don’t have to do alone.