2020 was a milestone that reshaped the automotive industry in such a short time than would have happened in a century. This year will also record numerous technological changes with capital markets and investors switching their investment in this side. Statistics from the Mobility Intelligence Center of Plante Moran anticipates the electric vehicles to form a quarter of the North American market in the next seven years, doubling the shares that this industry recorded last year. This trend will be facilitated by the plug-in hybrid electric vehicles and purely electric vehicles that will be unveiled over the coming years. Nevertheless, the internal combustion engine cars will still have a considerable portion of the market share, although it would be on a diminishing scale.
The plausible theory that the experts are projecting is that the uptake of conventional cars will be low while that of the electric vehicles will be escalating. This trend is because the electric vehicle charging utilities would have infiltrated the entire country. However, the US is shifting its focus and policies from electric vehicle products, and consumer needs to other matters. The country paid less attention to this sector, with President Trump imposing tariffs on the importation of these vehicles from the manufacturing countries. This trend will change this year after the new leaders and legislators assuming office. President-Elect Joe Biden promised through his agenda to promote the uptake of clean energy and its development to minimize pressure from the environmental activists.
Capital markets are also in the process of channeling their resources to support environmental sustainability programs. Some include JPMorgan Chase, which has withdrawn its support for coal mining, and BlackRock declared its desire to help meet sustainability shareholder objectives. These trends, among others, indicate that the financiers are sending their resources to eco-friendly projects. The approach taken by the automotive industry indicates that it is going to thrive in the business world for the next ten years until the entire transportation industry switches to electric vehicles. Projections by experts show that over 3 million electric vehicles will be on the roads in the next six years. Electrification of common car brands like Ford Mustang and F-150 has put them in high demand, stirring their car fanatics and consumers’ uptake.
Moreover, the measures streamlined towards greenhouse gas emission reduction have activated the development of clean energy sources to meet the demand for electric vehicles and other energy-consuming services. Another driving strategy in the high profitability witnessed in the electric vehicle industry is the high demand from mega distributors and companies like Federal Express, Amazon, and UPS. These utilities have also outlined objectives in line with the reduction of emissions.