With the world facing serious global warming problems, governments, businesses, and individuals all around are scrambling for cleaner and greener methods to battle perilous environmental threats.
Diesel and petrol cause more harmful emissions than any other fuels and people know that very well now. This is the reason environment-conscious individuals are opting for eco-friendly cars – more specifically, the Electrified Vehicles (EVs).
These electrified automobiles not only contribute to a better, cleaner environment but also let consumers save plenty of money in the long run. While diesel and petrol cars dominate the automotive industry, demands for electrified vehicles have been on the rise, pointing towards an exceedingly bright future for hybrids, plug-in hybrids, and all-electric cars. But can we say the same for the automotive sector on the whole? How are these environmentally friendly cars affecting this massive global industry? Let’s take a closer look.
Impacts On The Automotive Industry
The public is gradually adopting electrified cars, which means there’s a good probability that these eco-friendly vehicles will dominate the automotive industry sometime in the future. Since the change is slow, it might take a few years until electrified cars could really grasp the market. However, we’re already seeing the effects. The rise in electrified car sales has started to alter the entire automotive business model, transforming operations for automobile manufacturers, suppliers, and more.
The emergence of EVs is urging manufacturers to start investing big in electrified car divisions. Carmakers that have realised that the future of the industry lies in eco-friendly vehicles have initiated significant internal transformations such as shifting R&D budgets. One of the most important aspects manufacturers are considering is the formation of brand-new supply chain partnerships to cater to all-electric technologies.
Suppliers are and will experience significant impacts once all car manufacturers start moving towards EVs. To survive and stay in the market, these suppliers will require new initiatives to offer essential EV components, such as batteries.
Ultimately, dealerships must learn to sell both conventional and electrified cars. They need to hire diverse personnel since selling EVs requires a whole other set of skills.
What about mechanics and service centres? Even if these service operations switch to accommodating eco-friendly vehicles, they’ll face major challenges. Electrified vehicles require a lot less maintenance than their fuel-based counterparts, which means less profitability for mechanics and service centres.
The Role of Government Regulations
The development and growth of eco-friendly vehicles depend a lot on the government and its regulations for the automotive industry. For example, governmental authorities voiced a few concerns that electric vehicles operate so quietly, that they can pose a safety issue for certain people on the road. This can lead to electric car manufacturers designing louder vehicles.
The government also needs to come up with ways to make eco-friendly vehicles more affordable and provide extra facilities to encourage people to adopt them. They can consider providing special advantages for plug-in and electric car drivers such as priority parking spaces and more accessible charging spots.