Tesla Case

How Do You Assess The Adoption Of HEVs To Date? How Do You See The Future Adoption of HEVs?

Stringent legislative policies that have been put in place in various nations with the aim of curbing harmful emissions could be termed as the most powerful forces behind introduction of HEVs. These efforts are aimed at reducing dependency on earth’s diminishing oil reserves. The dynamics surrounding the concept points towards migrating away from vehicles that are exclusively based on combustion engines. Instead, advocacy has been continually geared towards the use of hybrid and electric vehicles.

The emergence of hybrid and electric vehicles is the result of increased global focus on the economy of fuel, energy security as well as reduction of emissions. With the execution of charging stations all over the nations, transportation continues to become more efficient, which implies reduced energy dependency. In the year 2012, the petroleum imports in the United States translated to 40 percent of the total amounts of petroleum that had been consumed. In addition, petroleum used for purposes of transport accounted for just about three quarter of the total petroleum consumption in the same year. This is one of the most crucial issues that Hybrid Electric vehicles have strived to alleviate since they were commercially introduced.

The year 2013 alone saw a total of 500, 000 HEVs sold in the United States. This figure was led by Toyota Motor Co., which sold its most ubiquitous brand, the Prius. For this reason, it is evident that the adoption of Hybrid electric vehicle is continually becoming commonplace and widely accepted.

Eventually, Hybrid electric vehicles shall be more accepted even amongst business owners. The current position is that most of the HEVs are for personal use. Despite the promises of reduced fuel costs, reduced costs of maintenance and the green effects on the environment, the price tag on the HEVs continually prompts the owners of large commercial fleets to postpone adoption, for at least a couple of years, until they experience an increase in consumer volumes. However, HEV manufactures are unlikely to cut prices on their products. However, some organizations such as FedEx, Frito Lay and Verizon have made plans to replace some of their fleets with HEVs. This, coupled with government incentives to promote adoption of plug in vehicles, will definitely spur the market forward in future. In addition, these actions will prompt manufacturers and suppliers to commit further investment in technological advancements, hence increasing performance while reducing cost on components including electric motors ad lithium-ion batteries. This move will eventually give rise to additional consumer purchases.

Do You See A Bright Future For PHEVs?

With the continually diminishing oil reserves, the need to go green and the exorbitant prices of fuel globally, the future of PHEVs looks rather bright. Despite the fact that even the manufacturers of automobiles were in doubt about their validity, their adoption has increasingly been felt the world over. Fredonia, an industry analyst organization, predicts that by the year 2018, the worldwide sales of hybrid electric vehicles will be more than twice the current value. Presently, Japan is the global leader in regard to endorsement of HEVs. The sales values of hybrid electric vehicles represent more than twenty percent of total annual vehicle sales. Japan is followed by North America and Europe though their sales levels are far much less in comparison to Japan. Currently, there are different types of HEVs including electric vehicles, plug in hybrids, micro hybrids, full hybrids and mild hybrids. The availability of these hybrids is a major indicator of the importance and popularity of HEVs, which is a fact that is indicative of the products’ bright future.

Within this decade, commercial flights will adopt the use of HEVs. In addition to this, manufacturing firms are continually gearing towards committing large portions of their investment towards the technology. For instance, Ford has plans underway to invest a whopping $135 million towards HEV technology. This move could be further reinforced by the California state’s pledge to invest $120 million in building charging systems. These steps will go a long way in improving the performance of the product in the future market. Availability of the products and the necessary infrastructure shall then be further reinforced by the desire to curtail destructive emissions, ensure upcoming generations enjoy cleaner atmosphere/environment and also avoid irreversible damage to the environment. Due to the above reasons, it would be prudent to deduce that the future of HEVs is very promising.

Do You Believe We Will All Be Driving EVs 25 Years From Now? Fifty Years from Now?

Based on the discussion above, it is evident that the use of HEVs and EVs is likely to be relatively dominant in the near future. The benefits of adopting HEV technology simply outweigh the detriments. The reason for this is the fact that, alongside the global requirements of a cleaner environment and the need to preserve the planet for future generations, HEVs also come in with more personal benefits of cost reduction. With the course of time, the costs of living continue to escalate and human beings are continually seeking ways to save on daily expenses. Therefore, a move that will see an individual or organization make some savings shall surely be adopted easily as opposed to continuing with a more costly option. In addition, it has been stated earlier in the report that, over time, oil reserves on the planet have increasingly dwindled. This means that in future, there is a possibility that there will be inadequate petroleum products to serve the ever increasing global population. As a result, individuals, organizations and governments will be forced to shift to the use of HEVs and EVs. However, for this to happen, manufacturers must work towards reducing the costs on these vehicles. As stated earlier, one of the inhibiting factors to adoption of EVs is the price factor. In the long run, the user makes immense savings on usage though the issue of affordability is still a force to reckon with.

In such a way, it would not be possible to fully adopt the use of EVs in the next fifty years unless strong measures are taken by global governments and manufactures to make access easier.

What Actions Does Government Need To Take (If Any)? Will There Be EVs In UAE?

The government is a major player in all economic, social and technological matters by being the financier, enforcer as well as regulator. In regard to the adoption of EV technology, all governments need to provide information on the use of the technology. This information should be based on the pros and cons of using the product. By this, the government of the day must create awareness by educating the population about the environment, which is the requirement that is crucial to safeguard the environment and the roles played by the EV technology in meeting this. Recently, there have been global summits attended by world leaders on the issues of climate. At these forums, much information is shared, and it is the work of government to disseminate this information to citizens so that adoption of EV technology is embraced voluntarily, without necessarily being enforced on the citizens.

In addition, the government needs to introduce regulations that encourage the citizens to adopt the EV technology. For starters, there could be economical incentives such as lower taxation rates, or exemptions for all EVs. This would go far in reducing the purchasing costs, which would further promote the usage of EVs. Provision of adequate infrastructure to cater for the usage of the vehicles would also play a critical role in encouraging the use of the vehicles. As stated earlier, the government of California State had pledged to invest $120 million in infrastructure. Infrastructure could include increasing public charging stations and designated HEV spots.

EVs use electricity. The burden of supplying electricity to people lies with the government, and therefore, the government must put in place measures to ensure that the additional consumption levels have been met. The ministries charged with the supply of electricity must ensure that there is adequate energy so as to allow smooth operation of the industry.

In fact, the United Arab Emirates is a major producer and exporter of oil. However, the country has led the drive to promote electric vehicles with the launch of EV charging stations as well as putting in place the mechanism and apparatus to inspect and register the vehicles. In addition, the government has adopted mechanisms aimed at promoting the use of EVs. These include incentives such as import duty exemptions, discounts on registration, offering free parking slots, exemption on Salik as well as electricity consumption discounts.