GREEN INDUSTRIAL REVOLUTION THE FUTURE OF ELECTRIC VEHICLES
Boris Johnson has announced that as of 2030 no cars that use petrol and diesel will be sold in the UK
THOUGHT LEADERSHIP
INDUSTRY
JONNY GILPIN SPECIALISED IN AUTOMOBILE INDUSTRY
Are EVs becoming an economic concept? The ban on petrol and diesel has come as no surprise, but the news has sent shockwaves across the UK. On November 18, Boris Johnson announced that as of 2030 no cars that use petrol and diesel will be sold in the country. The prime minister is planning a green industrial revolution that focuses on his ten-point action plan to make this happen. Investments in sustainable energy and improved public transport are included. The electric vehicle market is due to receive £1.3 billion in funding to help with this. The UK will witness the introduction of significantly more charging points, while buyers will receive additional support—thanks to a grant being implemented to aid those making the switch. Despite his announcement facing backlash, not everything is getting distorted. In fact, the electric vehicle market has been a saving grace over the last two years.
What the last 2 years looked like There is no denying that new car sales were poor in 2019, and it was diesel fuelled cars that took the biggest hit. The sale of new USD vehicles was down 2.3 percent overall. Of course, the plan to introduce additional ultra-low emission zones across the country alongside the impending fear of the ban on ICE vehicles was enough to discourage anyone from buying diesel. However, in some aspects,
the growth of the electric car market softened the blow to the diesel market. Sales of electric vehicles rose by 144 percent in 2019. Why? Because motorists want fuel-efficient, high performance, low emission vehicles—and in the modern world that we live in—thanks to stark developments in automotive engineering— electric vehicles offer exactly that. In all parts of the automotive industry, 2020 has been noticeably bleak. Showrooms across the country forced to shut their doors and manufacturing plants unable to take delivery of parts have further contributed to the lack of buying invoked by the recession. Despite the market contraction, electric vehicle sales experienced a year-on-year rise of 184 percent in September.
Revisiting the past Electric vehicles had negative connotations in the nineties and twenty-tens: Poor mileage, expensive, and in most parts lacking in what Thierry Henry once described as ‘va va voom’. And this outlook was not inaccurate. If you went to purchase an electric car, often these three attributes were true, and you were hardly spoilt for choice when it came to options either. The Prius changed the game admittedly, but even when it came to prominence, we were still left wanting more. With the world becoming now more environmentally conscious than ever, big
International Finance | January 2021 | 75
