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Electric vehicle predictions are downplaying the demand

The upcoming decades will witness a tremendous change in the automotive industry, with various technological aspects taking shape. These advances will require timely and informed investment decisions by the stakeholders for their businesses to perform effectively. Sopheon software specialist Ron Lee wrote in a submission entitled State of the Automotive Industry as it Turns to Electrification that OEMs have to make a quick decision concerning the technology they would be exploring in the switch electrification.

Although electric vehicles have been in the industry for quite some time, this period has witnessed a success rate that activated investors to start thinking in this direction. Over two million electric cars have been manufactured in the last two years, and the annual production rate is expected to grow even as society switches to these clean cars. Lee explained that the automotive industry would be aligning itself with electrification, which is why they are examining the factors that could propel this switch’s success through the coming decades.

The increasing number of electric vehicles will facilitate their uptake by initially skeptical customers that it is an ambitious concept. Experts predicted that customers should expect over 400 electric vehicle models in the market. Sopheon also projects the number of electric vehicles in the market, reaching 20 million by the end of this decade. However, Lee noted that the predictions are slightly low because the experts have tried to factor in government policy, societal and legal factors impacting the uptake of the electrified cars.

Various institutions have started switching their transportation systems to clean energy, citing the emissive cars’ foreseeable future. Luckily, the pandemic has also boosted the desire to take up these cars after people seeing the reduction of traffic on the roads leading to improved air quality. Furthermore, the European Union regulations to enhance the transition to clean energy and electric vehicles will facilitate the elimination of technologies that are not eco-friendly.

Meanwhile, some countries have outlined the carbon dioxide targets that the fleet should achieve to ensure that the decarbonization objectives are achieved as per the Paris Climate Agreement. Automakers in Europe are expected to have minimized the emissions coming from their products and operations by about 40 percent at the end of this decade. The study conducted by Sopheon indicated that these targets might be surpassed in the US, especially after the election of a president pushing for the decarbonization of the country’s energy and automotive industries to fulfill his promises to the people.

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