AMR Future Brief| Analyzing the Reasons Behind the Global Surge in Electric Vehicle Stock

In the past few years, electric vehicles have gained popularity across the globe as people have become increasingly aware of the adverse effects of fossil-powered vehicles on the environment. Many developed countries, such as the U.S. where transportation accounts for a major part of the greenhouse gas emissions, have started adopting EVs to reduce carbon emissions. Moreover, the growing environmental concerns, technological advancements, and supportive government policies have resulted in a significant rise in the stock of electric vehicles worldwide.??

A look into the reasons driving the stock of EVs??

One of the most compelling reasons for the rise in electric vehicle stock is the increasing need to address climate change. Traditional internal combustion engine vehicles are major contributors to greenhouse gas emissions, which significantly impact global warming. EVs, on the other hand, produce zero tailpipe emissions, making them a cleaner alternative. With the growing awareness of environmental issues, consumers worldwide are increasingly opting for EVs to reduce their carbon footprint.??

Furthermore, technological advancements have also played an important role in making electric vehicles more viable and attractive. Improvements in battery technology have led to increased energy density, longer driving ranges, and faster charging times. Lithium-ion batteries have become more efficient and cost-effective alternatives for advanced EVs, offering enhanced performance. Moreover, innovations in electric drivetrains, regenerative braking systems, and smart energy management have enhanced the overall performance and efficiency of these modern vehicles.?

On the other hand, governments worldwide are implementing policies and incentives to promote the adoption of electric vehicles. These measures include tax credits, rebates, grants, subsidies for EV buyers, and investments in charging infrastructure. For instance, the United States offers a federal tax credit of up to $7,500 for the purchase of a new EV, while countries like Norway provide substantial tax exemptions and free parking for EV owners. Such incentives make these vehicles more affordable and accessible, encouraging more consumers to make the switch.?

Furthermore, the availability of charging infrastructure is another important factor in the adoption of electric vehicles. To alleviate range limitations and make EVs more convenient for everyday use, governments and private companies are investing heavily in the development of charging networks. Public charging stations are becoming more ubiquitous, with fast chargers capable of providing a significant charge in a short time interval. Additionally, workplace and home charging solutions are making it easier for EV owners to keep their vehicles powered up.?

The cost of electric vehicles has been a major barrier to their widespread adoption. However, the scenario is rapidly changing. The cost of EV batteries, which constitutes a significant portion of the vehicle’s total cost, has been declining steadily. Economies of scale, advancements in manufacturing processes, and increased competition among automakers are driving down prices. As a result, the total cost of ownership for EVs is becoming comparable to, or even lower than, that of traditional ICE vehicles over their lifespan.?

Active participation of Promax Power and Toyota Motor in promoting EV adoption?

In April 2024, Promax Power, a leading provider of engineering, procurement, construction, project management services announced its acquisition of Exirgy Innovations, a pioneering company redefining the electric vehicle charging landscape. With this agreement, Exirgy Innovations plans to undergo a transformative rebranding initiative and operate under the name Promax PlugUp EV Private Limited. This investment made by Promax Power Ltd. showcases its commitment to foster innovation and sustainability in the EV sector. Under this agreement, both the entities take a collective approach to accelerate the adoption of electric vehicles and enhance charging infrastructure across the globe. With this initiative, Promax strengthens its position in the EV charging industry by specializing in the design, development, and manufacturing of cutting-edge AC and DC EV fast chargers . These advanced chargers are engineered to deliver rapid and efficient charging solutions for electric vehicles, catering to the evolving needs of drivers, businesses, and communities.??

Furthermore, in Toyota Motor Corporation, a Japanese multinational automotive manufacturer acquired Panasonic, a Japanese multinational electronics company to make move in the automotive battery sector. With this acquisition, Toyota’s wholly owned subsidiary, Primearth EV Energy (PEVE) plans to promote the use of automotive prismatic lithium-ion batteries. The company focuses on the production of batteries for hybrid electric vehicles , battery electric vehicles, and plug-in hybrid electric vehicles. Through this acquisition, PEVE expands its business by running three manufacturing plants located in Shizuoka and Miyagi, showcasing its substantial contribution to the automotive battery industry.??

To wrap up, the increase in consumer awareness and education about the benefits of electric vehicles and rapid advancements in battery technology have escalated the stock of these modern-age vehicles globally. Furthermore, the increased investment by leading automakers in research and development to reduce their carbon footprint is expected to boost their stock value in the upcoming years. Such initiatives of leading players help mitigate climate change and lead the way for a cleaner and sustainable future.??

For more information about the reasons behind the growing stock of electric vehicles, feel free to talk to our industry specialists today! You can also chat with them through our chat window. ??

? **?????????????? ????????????: Rosy Behera ?

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