Electric cars have been around since 1894, but they’ve only recently become mainstream. Despite being an environmentally friendly alternative, electric vehicles (EVs) still account for just 25% of the global car market. This limited adoption is largely due to their high cost and dependence on government incentives.
The automotive industry has struggled with EVs, even for pioneers like Tesla. The company’s sales in Europe have decreased, and its revenue has suffered. One reason for this decline is the expiration of carbon credits, which were a key factor in Tesla’s past success. These credits are essentially rewards from governments that encourage the production of clean cars.
In China, where EVs dominate the market, government support has been significant. However, this support has created problems as Chinese carmakers produce more cars than buyers want to purchase. This highlights a critical issue: electric cars need to become viable without relying heavily on government aid.
The success of Henry Ford’s Model T in 1908 demonstrates that efficient production and mass market appeal can drive adoption without government assistance. As the automotive industry continues to evolve, it’s essential for electric car manufacturers to focus on self-sustainability rather than relying on external support. Only then can they unlock their full potential and become a true mainstream success story.
Source: https://timesofindia.indiatimes.com/blogs/gen-zedits/electric-cars-still-needing-a-push