It sounds like a bold statement, but I would be ready to bet with most of Monday Note’s readers that in less than four years they will be driving an electric car. (Will they actually own it is another matter that will be the subject of another article of this series). But the underlying trends are unstoppable.
In this instalment, we will address the following questions:
» Why will you buy an EV?
» What are the industrial components of the shift ahead?
» Will the infrastructure be able to respond adequately?
Overall auto sales in plunged 79% in February compared with the same month in 2019, according to figures from the China Association of Automobile Manufacturers. Sales of new energy vehicles (NEVs) fell for the eighth month in a row.
“China’s auto market was already reeling from a large drop in demand in 2019. In 2020 no carmaker has been immune to the effects of the coronavirus. That includes everyone from the oldest joint ventures producing internal combustion engine SUVs to the most innovative upstarts making connected electric vehicles,” says Scott Kennedy from the Center for Strategic and International Studies.
“The vast majority [of electric car makers] will not survive. But how long they survive and whether industry consolidation occurs through lots of mergers or bankruptcies will depend on the willingness of the government.” » […]
Homeowners may need to think twice about purchasing larger vehicles, while parking lot operators are starting to charge oversize fees to accommodate behemoth SUVs and trucks.
Trevino, the Dallas area resident whose F-150 doesn’t fit into her garage, said she’s personally experienced the frustration associated with the size of her pickup.
“My truck is really big,” she said. “Trying to maneuver into a space totally sucks. If you go to the mall and it’s really crowded, looking for a spot is a huge factor. I really have to spend time searching.”
In this context, “my truck is really big” should be read as an attempted humblebrag to mitigate the self-own.
It is cool, you see, to drive a 5,000 pound vehicle to the mall. It is cool to have every journey in your expensive truck begin and end in total frustration. It is cool to be charged an oversize vehicle fee, as many parking garages have started to do.