The automotive industry is transforming significantly as more automakers plan to switch their fleets to electric power over the next decade. With some announcing goals for fully electric lineups within five years, the shift presents enormous obstacles, including infrastructure, manufacturing and regulatory challenges.
Last year, electric vehicle (EV) sales surpassed 6.7 million worldwide, marking 108 per cent increase from the previous year. The International Energy Agency (Iea) predicts that more than 300 million electric cars will be on the road, accounting for 60 percent of new vehicle purchases. However, with the surge in electric vehicles come significant challenges impacting the automotive industry, such as pressure on the power grid and a need for sustainable, environment-friendly materials.
The difference between the century-old combustion engine technology and battery-powered electric vehicles presents one of the most significant obstacles. Electric vehicles require an electric charge and recharging stations, which use tremendous energy. While some experts believe that EVs will strengthen the power grid and make it more resilient, others say that the expected volume of electric cars added to the current grid presents a recipe for disaster.
The existing electric grid-primarily operates on coal-fired plants that provide a minimum level of sustained power, ensuring energy certainty. Moving from coal to renewable energy sources such as solar and wind might create a less consistent power supply, which could result in a system-wide failure due to increased demand for electric vehicles.
As automakers strive to meet evolving industry standards for safety, emissions testing, and energy efficiency, they require electric powertrains, hybrid electric vehicles (HEV), and EV solutions addressing safety, regulatory, and environmental issues. This significant transformation represents a seismic shift in thinking and operations, and the industry must overcome numerous challenges.
