Better Customer Experiences
Extended battery life
Electric vehicles can land on the more pricey side of the spectrum–however, this isn’t the issue consumers are concerned about. Most consumers are concerned with the car’s battery lifespan rather than its price, but they won’t have to worry about this for much longer. Technological advancements are allowing EVs to have longer battery charges, maximizing their range, according to Cox Automotive’s research. Further, every battery in an electric car sold in the U.S. comes with a warranty that lasts for a minimum of 8 years or up to 100,000 miles, says CarFax. Brands like Kia offer a battery pack warranty for ten years or 100,000 miles, while Hyundai provides a lifetime coverage of its electric cars’ batteries.
As technology advancements extend the range of EVs, more customers will be willing to go electric in 2021. With so much concern over EV battery life, it’s essential to have plenty of access to EV chargers. Additionally, it’s vital to have a reliable charging station that won’t diminish your EV battery’s life.
Another obstacle holding many back from purchasing electric vehicles is the price point. According to Cox Automotive, only 10% of electric vehicle buyers are between the ages of 25 and 34. In fact, 70% of electric car customers’ incomes are at least $100,000. Luckily, the cost gap between electric models and gas models is beginning to shrink. Between 2010 and 2016, the cost of electric car batteries went down by over 70%.
The cost of maintaining EVs is also shrinking; in a CNBC report, a young millennial reported paying $12,000 for his used Nissan LEAF. He received $1,000 for trading in his old vehicle and also received a $750 electric vehicle incentive from a local utility for home charging. Spending only $14 on August’s charging fees, he was surprised at how inexpensive it is to maintain and power his car. In fact, the Cox Automotive survey showed that 65% of GenZ (6 and 24 years) consumers believed charging an EV costs less than fueling a gas car.
New designs for different audiences
In the past, electric vehicles were made in a limited variety of designs, unable to appeal to all consumers. However, this is changing; Volkswagen has announced plans to launch a family of electric vehicles priced below $22,000, targeting the average consumer and not initially designed for the U.S.
In the luxury market segment, the announced launch of Telsa’s Cybertruck has galvanized a market that, in the United States, buys two million vehicles each year. With more than half-a-million orders, the company is now prioritizing its production over the Roadster. With the increasing variety of body types, electric vehicles will become more attractive to consumers interested in more than sedan-like vehicles.
Change in the Consumer Mindset
More and more governments worldwide are focusing their attention on the environment, including the United States. Consumers looking for green alternatives are ready for a change. The majority of these consumers are Millennials and Gen Z, the eldest of the latter having recently reached the age where they can purchase vehicles. EVs can help the United States have a greater diversity of fuel choices available for transportation, as 70% of America’s oil consumption is brought on by motorized vehicles.
In addition to regular consumers, big corporations are also searching for ways to make their brands green. Companies such as Amazon that rely on freight trucks are looking to switch to electronic vehicles to reduce their carbon footprint and minimize pollution. China, accounting for the largest share of global EV sales, plans to expand further as it lowers energy imports, addresses its poor urban air quality, and attracts investors into its auto industry. With demand for electric vehicles in China reaching 125,000 units in September, this trend is likely to spill over into the U.S. As the push for environmental awareness persists, EVs will become more popular amongst younger generations this year.
Pushes From the Government
Market forces and green government policies are accelerating this shift in the United States and around the world. President Joe Biden pledged to transition the U.S. economy away from the oil industry, a goal that cannot be achieved without the electrification of road transport. The President also made net-zero emissions by 2050 a part of his campaign platform, planning an investment of $500 billion toward this goal, a portion of which will support EV production and a wider availability of charging stations.
In an effort to expand the EV market, the incoming departments of energy and transportation are targeting the production of 550,000 publicly accessible charging stations within the coming years. This will mean adding tax incentives for EV retailers and consumers; in states like New York and Vermont, residents receive tax rebates by proving they’ve driven exclusively with electric power for a given number of miles. In other cases, consumers receive a rebate when they initially purchase an electric vehicle.
More Availability of Charging Stations
With the plan for growth in the EV sector, the government is looking for ways to encourage electric vehicle purchases by offering incentives to create public charging stations. One of the many complaints about owning an EV is the lack of charging stations in certain areas. In a CNBC report, a millennial living in the San Francisco Bay Area said public charging stations helped make an EV work for his lifestyle. “You have to live in a place where you can charge it,” he said.
Modern cities and commercial properties are looking to install charging stations to meet EV owners’ needs, who seek charging stations at their workplace car garages, grocery store parking lots, rest stops, and more. According to the Alternative Fuels Data Center, plenty of cities have Ev charging structure plans in place, taking part in PEVs Clean Cities Coalition Networks PEV vehicle community readiness projects.
Room for Innovation
Because electric vehicles are still relatively new to the market, investors are excited about the opportunity to discover innovations. Making money off of discoveries to make EVs more efficient is an opportunity that has become exceedingly rare in the regular motor industry.
Unlike conventional automobiles, electric vehicles are not equipped with many of the usual parts that eventually break and need to be repaired or replaced; an electric motor has fewer moving parts than a gasoline engine. An electric vehicle is fitted with a single-speed transmission. Electric mobility gives car designers much more creative freedom with fewer limitations than traditional vehicles, creating the potential for a revolutionary vehicle that looks different from anything we’ve seen so far.
Electric vehicles are rapidly becoming a mainstay in daily transportation; over 2 million cars are being sold per year at a rate that is expected to grow exponentially, with the demand for Electric Vehicle Supply Equipment (EVSE) rising as well. As a U.S.-based leader in precision manufacturing, Fabcon has partnered with numerous innovative companies to provide turnkey production and design services–and vehicle charging stations are no exception. If you’re ready to partner with an industry leader in EV charging, contact us today.