Electric Vehicles - Pros & Cons
Peak Automobile - A motor industry in chaotic transition!
The transition from horse & buggy to the internal combustion engine (ICE) took approximately 25 years and changed society forever. The transition from ICE to EV (or other alternative(s)) is being driven by climate change, supported by government incentives and is gathering momentum.
There have never been more options available for purchase a vehicle - petrol, diesel, hybrid, battery electric, plug in electric, hydrogen etc. In China alone there are approx. 80 EV manufacturers each with a range of models. Legacy car makers in Europe and the USA along with their dealer networks are scrambling to stay relevant and continue in business. Tesla has dominated the early market in Australia. Primarily purchasers have been high income, early adaptors, but this market segment is now saturated, and Tesla sales have dropped off - despite significant price reductions - as the brand faces stiff competition from cheaper Chinese manufactured brands.
China - highly subsidised and the dominant manufacturer
China leads the world in Ev manufacture. Chinese EV manufacturers have lower labour and materials costs and are heavily subsidised (rumoured to be almost 100% of vehicle manufacture costs) by the Chinese govt. They also have a significant lead in the technology & manufacture of EV batteries.
Their home market is estimated at 900,000 new vehicles a year. Current manufacturers (approx. 80) have the capacity to make approx. 1.8 million new vehicles per annum. The largest 3 manufacturers really dominate and have approximately 75- 80% market share. Most of the others are struggling to compete and must export to survive - most will disappear in the longer term.
We're about to get a flood ( rumoured to be about 53 models) of cheap imports from China.
Australian is one of the few advanced economies in the world that provides an ideal testing market for EVs. We don't have high import barriers like the USA and the EU. We are early adaptors for new technology.
We have government incentives and support to make the switch to EVs.
We love small SUVs just like the Europeans, and we also love "trucks" just like the Americans.
We're a small market - if a brand or a model "bomb" in Australia it's not going sink the brand name anywhere as much as it would in Europe or the USA.