The Electric Vehicle Industry Is Booming

Demand for electric cars has steadily risen over the past few decades. Modern-day electric vehicles, or EV, began to truly become popularized in the late 20th century. This surge in interest and production can be attributed to several factors, such as increased environmental concerns, increased cost competitiveness with conventional gas vehicles, and improved vehicle ranges. Electric cars offer a range of benefits in fuel costs, pollution emissions, and less maintenance due to them offering an efficient electric motor.

As things currently stand, China is the dominant leader in the electric vehicle industry. The country has a notable advantage over other countries because it mass-produces battery materials, including nickel, cobalt, and lithium. Their ability to produce lithium-ion battery cells, in particular, offers them an upper hand regarding electric vehicle production costs. In the past year, China had approximately 6 million electric vehicles and plug-in hybrid vehicles, accounting for 60% of the world’s total electric vehicle inventory.

Coming in second and third place are Germany and the United States, respectively. In 2022, the U.S. generated an estimated 918,500 light electric vehicle sales. This was over two and a half times more than in 2018, which was regarded as the starting point of strong demand for Tesla’s Model 3. Germany has reported 355,575 new electric vehicle registrations in the year 2023 alone.

Tesla, an American brand, stands out as the leading producer of electric vehicles. In the past year alone, Tesla generated around 81.5 billion dollars in total revenues. The company released its first electric vehicle in 2008, but it took several years to become profitable. It wasn’t until 2020 that the company started seeing a substantial profit increase, primarily due to many production and supply chain issues surrounding the COVID-19 pandemic. Tesla’s largest electric vehicle competitor is China’s own BYD, which was founded in 1995 and introduced its first electric vehicle in 2008. The company has seen massive growth as its profits surged 145% in the second quarter.

Additionally, BYD passed Volkswagen as China’s best-selling car brand earlier this year. BYD delivered a record 70,300 new energy vehicles in the second quarter alone; this number is up over 98% when compared to last year.

As nations across the globe continue to shift to more eco-friendly vehicle alternatives, it can only be expected that these numbers will continue to grow. Currently, the global auto industry is undergoing immense changes. Electrification is taking the world by storm, and the need for at least 5 million barrels of oil daily will cease to exist. A new wave of electric vehicles is in the process of being produced. Nowadays, electric trucks are a new and upcoming trend. This will allow electric cars to reach a broader range of people and attract a bigger audience.

The EV market is a captivating and rapidly growing trend. With an increasing number of companies entering the realm of electric vehicles and dedicating themselves to sustainability, this market is poised for continuous expansion. The remarkable progress in technology over the years underscores the potential of EVs. As we look ahead, the future of electric vehicles holds endless possibilities, and time will be the ultimate storyteller in this journey.