A MOTORS expert has claimed that the EV boom has been a “disaster” – but there is a solution.
Nick Gibbs said that a pair of factors have been holding people back from realising the potential benefits of electric cars.
GettyA motors expert has claimed that the UK EV rollout has been a ‘disaster’[/caption]
Writing for Autocar, he quoted Morgan Stanley analyst Adam Jonas as saying: “This EV journey for legacy OEMs [original equipment manufacturers] has just been an unmitigated disaster so far.”
According to Nick, this was largely due to a combination of slumping demand and high costs as the main causes of faltering profitability among EV brands.
For example, just last month we reported that a California-based EV company is losing a fortune on every vehicle it builds.
Nick said: “Despite the initial hype and government incentives, consumers have shown less enthusiasm for EVs than anticipated.
“This lack of demand has created a challenging environment for legacy OEMs to increase their production and achieve economies of scale.
“The high costs associated with developing electric vehicles, including research and development, battery technology, and infrastructure investments, are not being offset by sufficient sales.
“This has put pressure on the financial performance of these companies and raised doubts about the viability of their EV strategies.”
And the results of this pressure are becoming evident throughout the industry.
In October, GM and Toyota abandoned a joint plan to produce cheaper EVs citing profitability concerns.
Likewise, Ford and Tesla have both made price cuts in recent months in an effort to drum up sales.
It doesn’t seem to have helped much, though, as sales saw a worrying drop in October, with figures suggesting a wider trend at play.
However, it’s not all doom and gloom for the electrified future.
Sales of second-hand EVs have doubled over the past year, though infrastructure still remains a concern.
Nick also sees plenty of cause for hope if the right steps are taken to address the barriers to ownership.
He explained: “As technology advances, costs decrease, and consumer preferences evolve, there is potential for a resurgence in demand for EVs.
“Legacy OEMs must adapt to these changing dynamics and find innovative ways to attract consumers to their electric offerings.
“Additionally, governments and policymakers play a crucial role in shaping the future of electric vehicles.
“Continued support through incentives, infrastructure development, and regulatory measures can help stimulate consumer demand and create a more favourable environment for legacy OEMs to thrive in the EV market.”
The Government has certainly gone all in with the stick approach, with its EV mandate using the threat of heavy fines to push manufacturers into making 80% of their output electric by 2030, but consumers are yet to see much of the carrot.
Some early EV incentives, including cash grants, have been withdrawn since the pandemic, while the road tax exemption is set to end in 2025.
Nonetheless, a billion-pound investment in upgraded charging infrastructure could make electric cars more accessible and cheaper, helping to overcome the issues Nick describes and keep the industry afloat.
It comes after a major EV brand inked a deal with a charging company that sees drivers offered free fill-ups for eight years – but there’s a catch.
Meanwhile, a businessman who used stolen millions to build a collection of 240 classic cars was left with nothing but a humble SUV when his scam was discovered.