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AutomotiveBusinessFeatured

Electric vehicle charging stations leading the future of the automotive industry

Electric Vehicle charging stations are forecast to witness significant growth in the automotive industry. The growth of the segment is attributed to the favorable government policies, growing environmental concerns, and increasing public demand for electric vehicles. Thus, the outlook of the automotive industry is forecast to change significantly in the coming years. 

Electric vehicles Charging stations function by capturing electricity from one of several sources and distributing it to the vehicles being charged. There are a few standard plugs and vehicle outlets depending on an EV’s make and model. 

Favorable government support 

Electric vehicles are gaining traction on a regular basis as they are environmentally friendly. Moreover, governments of various nations are looking forward to promoting the methods that can save the environment. Conventional vehicles cause pollution, which is harmful to health from various aspects. Thus, governments of several countries have been introducing initiatives to curb the growing pollution. 

Considering the matter, China’s government has introduced various policies favoring the purchase of new energy vehicles (NEVs). As a result, Tesla Motors introduced the investment of approximately US 2 billion to expand the facility in Shanghai. 

The Japanese electric vehicle market is expected to witness potential growth due to the increasing demand for electric vehicles. The Japanese government has planned to transform new cars into electric or hybrid vehicles by 2050. Thus, market players of EV charging stations are forecast to witness a bright future in the EV vehicle industry due to such favorable policies. 

 

Read about BMW X5 Engine – Complete Information

 

Furthermore, governments such as the United States and China are making various efforts to set up charging stations in their own countries. Moreover, they are offering tax exemptions, incentives, and preferential policies, which will boost the market growth in the coming years.

International Energy Agency estimates that the sales of electric vehicles increased by 40% in 2019, which is 2.1 million units. 

In 2018, China government unveiled its New Energy Vehicle (NEV) mandate. As per the mandate, the government will ban cars with internal combustion engines (ICS) for a long time. In addition, the Indian government is offering favorable subsidiaries to promote the sales of electric vehicles. 

Astute Analytica estimates that the global electric vehicle charging station market will grow at a compound annual growth rate (CAGR) of 20% during the forecast period from 2021 to 2027. 

Partnerships

Companies are entering into partnerships to expand their product portfolio. Recently, Jio-BP and Mahindra Group inked a partnership to offer EV charging solutions to the people. Mahindra’s electric three-wheelers, automobiles, quadricycles, and small commercial vehicles will be able to charge at Jio-current BP’s stations, as per the deal. The deal also covers the advancement of battery swapping technologies for electric three-wheelers.

The State Grid Corporation of China and ABB are entering into partnerships to boost revenue generation. 

Moreover, BMW and SGCC inked a partnership in 2018 under which SGCC will provide BMW car drivers in China with access to over 270,000 charging pillars by the end of 2020.

In 2020, BSES Yamuna Power Limited (BYPL) introduced a joint venture with EV Motors India Pvt. Ltd, to expand the establishment of EV charging stations. 

Launches 

Product and policy launches are forecast to boost the growth of the global electric vehicle charging stations. For Instance, BMW is launching a European fast-charging network in collaboration with Daimler, Ford, and Volkswagen. The organization intends to construct 400 charging stations in the coming years. 

The growth of EV stations

Millions of people prefer battery-operated electric vehicles over petrol or diesel-powered cars all around the globe. Thus, governments are also taking crucial steps to cater to the demands of the public. Some countries, such as South Korea, have one public electric charging station for every two automobiles. Thus, it becomes easy for the owners to drive the vehicle without any concerns. 

The South Korean government announced its plans for the development of electric vehicles (EV) and hydrogen fuel cell automobiles. The government will focus on increasing the number of charging stations. In addition, the government plans to have e 500,000 EV charging stations by 2025. 

After South Korea, Mexico has one public charging station for every three vehicles, while China comes in third with one charging station for every six customers. However, New Zealand has 1 EV charging station for every 52 electric vehicles is recorded.

Read the full blog: https://japaninsights.jp/jio-bp-and-mahindra-group-signed-a-pact-to-offer-ev-services-including-ev-charging-solutions/

Combating the challenges

The future of electric vehicle charging stations seems bright. However, significant challenges need to be considered before they affect revenue growth.

Finding slot

Electric vehicles are growing in popularity, but it becomes challenging for users to find a slot. Authorities have been developing a favorable solution to combat those hurdles. For instance, the Indian government recently introduced its plan to develop a centralized mobile app. The app will help electric vehicle (EV) users to locate the nearby charging stations and book slots.

Cost of Charging

The other significant challenge is the cost of charging. However, companies are developing effective solutions to overcome this issue as well. Xpeng Motors XPEV, a Chinese electric vehicle manufacturer, announced that its Chinese network of charging stations has grown to 1,140, spanning 164 Chinese cities. According to the firm, Xpeng is the first new EV manufacturer in China to offer free lifetime charging services to its consumers. In addition, the owners of the new Audi E-Tron GT will also get innumerable benefits in the future. The buyers will get around three years of free charging service, majorly for Electrify America charging network. 

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