These days, you can’t blink without seeing an ad for some brand new, sleek and shiny electric car. These low emission vehicles are all the rage currently, showing a clear change in strategy for the automotive industry.
In recent years the traditional petrol engine has been making way for the hybrid, electric vehicles that we see almost everywhere today. There’s been some serious changes in the automotive industry recently. People are more aware about the environmental impact of their cars, alongside a 22% decline in car sales, people are also ride sharing more, not needing to purchase their own vehicle. As such, the automotive industry is changing and adapting to this green new world by releasing low emission or completely electric vehicles to stay viable and profitable.
Decline of the traditional engine.
The traditional (internal) combustion engine is on its way out. With a falling demand, emission woes, the logistical challenge of electric and the shift away from ownership, it’s an exciting time of change for many companies. For years, vehicle manufacturers have enjoyed a lengthy, profitable existence, selling a mostly unchanged engine from the American Model T Ford brought to the masses all those years ago.
The rise of the mainstream electric vehicle has been a long time coming. Starting in 1855, scientists in the Netherlands, Hungary and the US created some of the first small-scale electric cars. Jump forward to 1971, the first manned vehicle on the moon was an EV. In 1997 the first Hybrid car was mass released, and 2009 saw energy companies in the US cause a large change in infrastructure, placing thousands of charging stations across the country. But as large a role as EVs have played in modern history, it always seemed unlikely to make them an accessible part of everyday commuting.
Now with the Prius and other similar hybrid and electric cars almost everywhere, the age of the EV is upon us. By 2040, electric cars could make up 57% of all passenger car sales worldwide. You just have to look over to Europe to see how far ahead of the game the Dutch are. In the Netherlands alone, fossil fuel vehicles are down 25%, whilst electric is up 75%. They have also brought out an incentive to go electric for tax and monetary purposes, giving citizens up to $4,400 to purchase a new EV.
But with all these new EV’s out and about, brands need to stand out to the consumer. Hyundai have recently announced the release of 11 electric vehicles by 2025, including a flying EV for Uber. Over in L.A. in the U.S, the city of Los Angeles have just purchased the first electric fire truck in North America. With all these new innovations, the automotive industry needs to keep up.
As we’ve mentioned before in our blogs, when purchasing a vehicle people care about many different factors. Previously, adding small features like seatbelts, air conditioning, ABS brakes, etc. have kept them relevant. However, what was once a pipe dream to mass produce an EV, is now a must-have for any car brand in order to succeed.
This greener, cleaner way of travel is of course good for the world at large, but can institutions adapt and change in time to not miss this milestone shift? Apparently, they’re trying to. Almost all automotive companies that do not already have electric vehicles, have plans to release them within the next two years… The race is on!
Everyday life is changing.
It’s not just the car brands that are adapting. Many companies are taking advantage of the changing industry. BYD, LG, Panasonic, and Samsung have become the dominant suppliers of batteries, the most expensive component of EVs. These companies realise that this shift in the industry represents a massive commercial opportunity, and they want to be the biggest name involved.
Adaptation is vital for businesses to thrive, and the automotive industry is a major part of consumers’ everyday lives. What was once a privileged commodity has now become commonplace. According to market research group Statista, 87% of UK residents have a car permanently available to them in their household. Of these, 66% have their own car, but ownership is definitely on its way down.
According to the latest report from the Department for Transport, 2.9 million vehicles were registered for the first time in Great Britain during 2018, 5% fewer than during 2017. In 2019 53,098 Ultra low Emission Vehicles (ULEVs) were registered for the first time. Interestingly this is a 15% drop from 2018, when 63,000 ultra low emission vehicles (ULEVs) were registered for the first time in Great Britain, an increase of 20% on 2017. This shows once again that greener vehicles are on the rise, and when they’re mass produced to be more affordable for the general public, they will be incredibly sought after.
But with the current peak of app-based travel, ride sharing and of course new EVs, a different infrastructure is required. More traffic management is needed, pick-up and drop-off hubs, more charging points, and newly trained roadside assistance centres/workers. This year alone BP will spend around $750 million on low-carbon activities, including wind, solar and electric vehicle charging. With this new need to adapt from traditional high emission vehicles, comes the need for new jobs in engineering, construction, and other roles.
New releases coming thick and fast
While the industry changes and advances, it’s great to see that many of our clients moving with the times. Lexus has just released the new UX 300e, its first fully electric vehicle. Hyundai, who has historically been at the forefront of hybrid vehicles, has seen great success with its Kona Electric, along with its recent partnership with British electric battery start-up Canoo. Other star examples include the BMW i3 full battery electric vehicle. Honda have announced their new Honda e, Fiat their 500e, Kia e-Nero was awarded whatcars ‘Car Of The Year’ and have announced that the Soul Ev is on the way. Mazda have released their MX-30, and Renault have both the ZOE EV and the Nissan Leaf coming soon.
It’s an exciting time and competitive time to be in the EV game.
That’s why at this relatively early stage in the EV boom, it’s so important that automotive companies utilise feedback and reviews of their products, to enhance and improve the next stage of design. By using questionnaires, they can see what customers like and dislike. As such, automotive clients are leveraging Reevoo’s experience in the car industry to create new questionnaires tailored to EVs. These questionaries’ are optimised to ensure the highest response rate and content that offers real insights.
Consumers can dictate what they want to see in the future of EV’s, and companies that listen will thrive. Value for money, charging time, performance and range will all be of massive importance to consumers when purchasing an EV. Authentic, verified reviews will help prospective customers with making that purchase decision, while managing expectations around vehicle performance.
Now, more than ever, reviews will keep the wheels turning.