A global jump in sales … What is the future of electric cars?

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2021-04-26T22:09:50+00:00
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A global jump in sales … What is the future of electric cars?

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“Will electric cars overwhelm others who work with internal engines?” Is a question that preoccupies many of those interested in the auto sector, in light of many international companies heading to this type of cars that have achieved a high market value during the past two years, but there are some apprehensions among consumers, especially Their high prices compared to “gasoline” cars.

Many countries are working to expand the use of electric cars as they are environmentally friendly, as dozens of countries of the world have passed laws that allow citizens to use these cars, while other countries, such as France, have banned the sale of new cars powered by gas, petrol or diesel by 2040.

The future of “electric cars”

Recent studies confirm that the electric car market will dominate the market for cars that operate with internal engines that depend on oil or on fossil fuels, especially in light of the rapid growth of the electric car market and many countries taking many measures and endeavors to increase the use of this type of cars and stimulate their sales.

Many countries are heading to expand the use of electric cars, as they are clean, environmentally friendly, and energy-saving, and electric cars can travel a long distance with minimal energy consumption.

The world’s major automakers have begun to develop and change their strategy in the industry to purchase electric cars, and to create incentives to attract consumers to replace electric cars with their traditional cars.

Many countries have also turned to the manufacture of electric cars, so experts advise to rethink the decision to buy a gasoline-powered car, expecting that within the next five years the future will be in front of electric cars.

According to a new report issued by the research and consulting company “Wood Mackenzie”, it is expected that investments in implementing infrastructure for charging electric cars and equipment needed to reach about 872 billion dollars, until 2050.

The report expects the annual increase in charging stations over the expected period, from 200,000 in 2020 to more than one million in 2050.

What contributed to the expansion of electric cars is the tendency of many countries to support this type of cars because they are zero-emission, and because they are less expensive to operate than other cars, as well as the high prices of gasoline, all of which contributed to the annual market value of bus and electric truck charging outlets exceeding 200 billion. Dollars, by 2045.

Projections indicate that sales of electric vehicles in China, Europe and the United States will reach $ 7 million annually by 2025, before doubling to $ 15 million annually by 2030.

Global jump in sales

Despite the negative impact of the Corona pandemic, which has suffered from preventing many countries, but at the level of the electric car industry, it has made a huge leap in many countries during 2020, as the volume of growth reached 3.24 million cars compared to 2.26 million cars in 2019, according to data. The location of the global sales base for EV volumes.

The website of the global sales base for electric cars “EV volumes” attributes the reason for the increase in electric vehicle sales to the policies of some governments that seek to reduce carbon emissions, while sales and marketing analyst Victor Earl said that the main factor in the increase in sales is that electric cars are simply better technology .

According to Bloomberg Agency estimates, the volume of investments in electric cars during 2020 amounted to about $ 139 billion, amid expecting that these investments would double in light of companies ’plans to develop and produce electric cars and batteries, in order to reduce costs, increase the distance traveled by cars, and reduce the time spent in the charging process. The one, and expand the establishment of charging stations.

According to estimates by the tracker of the electric vehicle industry, EV-Volumes, sales reached 4.2% in 2020 compared to 2.5% in 2019, and 8 countries reported an increase in the share of electric cars to more than 5%, while 13 countries managed to push electric cars. To more than 10% of new light vehicle sales in the past 2020.

Norway retained the leadership in the electric vehicle sales market, achieving 75% of car sales last year, while China was the leading electric car market, and last year in terms of sales volume it fell to 1.24 million vehicles, registering a growth of 15%, according to the German data site. Statista.

The United States of America ranked third in the world with sales of 328 thousand units, amid expectations that the market will witness a future boom in sales, taking advantage of President Joe Biden’s administration to support the industry, as the US administration aims to reach electric vehicle charging stations to 500 thousand stations.

The American company, Tesla, which is one of the main manufacturers of electric cars, produced about 499,550 cars in 2020.

Experts expect that the charging stations sought by the US administration will cover about 57% of the needs of the US market by 2030, which will stimulate the market to achieve sales of up to 25 million electric cars by the end of the current decade, according to the AutoCar website.

Last year, France sales recorded about 186,000 cars, ranking fourth in the world in electric car sales, while Britain, which saw 175,000 vehicles sold, was recorded.

Bloomberg estimates that the electric car industry investments are expected to record 168 billion dollars during the current year 2021, and to reach 203 billion dollars in 2022.

Bloomberg also expected that the electric car sector will witness the registration of investments worth $ 295 billion in 2024, and that it will reach $ 357 billion by 2025.

Egypt is expanding in electric cars

Following in the footsteps of European countries, Egypt is working on a plan to expand the use of electric cars, as the Egyptian government is looking into places for charging stations for electric cars, in addition to efforts to localize the industry of this type of cars in Egypt, as it is environmentally friendly.

To encourage citizens to own electric cars, the Egyptian government is working to increase the percentage of the local component, and to provide a package of incentives to encourage the use of electric cars.

The Egyptian government’s plan includes reviving the Nasr Automotive Company and producing the first Egyptian electric car, and the Ministry of Business Sector is seeking to coordinate with private companies that will be required to establish and manage 3,000 dual charging units serving 6,000 cars at the same time within 3 years.

In this context, Hisham Tawfiq, Minister of Public Business Sector, coordination is underway with the Ministry of Electricity to determine a competitive price for electricity and charging fees, in a way that provides competition for electric cars, as well as electricity distribution companies will implement the required infrastructure in the places that will be determined soon.

For his part, Major General Mahmoud Shaarawy, Minister of Local Development, stressed the importance of returning the thing to its origin on the part of private sector companies wishing to enter this field, with regard to the construction work of the new electric charging stations, in addition to the companies’ responsibility for the insurance process for these stations and that localities do not bear any responsibilities that.

The government seeks to provide incentives and facilities to encourage citizens and drivers to go to electric cars, as part of the state’s plans to localize the new energy car industry and rely on energy sources such as natural gas and electricity as an alternative to traditional fuels.

In 2019, the National Authority for Military Production signed a memorandum of understanding with the Chinese company Geely, to establish a factory for the production of electric vehicle charging stations in Egypt.

The cars will be produced through the production lines of the 999 Military Factory, in cooperation with the Ministry of the Interior to facilitate the issuance of licenses, and the Engineers Syndicate to establish centers for training engineers and technicians on electric cars.

This also comes at a time when the state continues to prepare the necessary infrastructure to expand the manufacture of electric cars, which includes the government’s plan to establish 3 thousand charging points for electric cars within 3 years.

The first Egyptian electric car

It is expected that Egypt will introduce the first electric car in the country, manufactured with Chinese technology and Egyptian hands, during 2021, as the first production of the Nasr Company for cars, which stopped operating in 2009.

The Egyptian electric car e70 is distinguished by its simplicity and lack of complexity and the percentage of faults in it will be very few for cars with engines, and it will be practical and more economical, and its saving will be approximately 32 thousand pounds per year.

Its price to the consumer will range between 300,000 to 350,000 pounds, and El-Nasr plans to produce about 25,000 cars per year, with half of the production of the new car sold to taxi drivers.

The Ministry of Military Production had previously undertaken a project to localize the manufacture of electric vehicles in Egypt, and presented the first two electric buses that arrived from China within the framework of the first stage of implementing the strategy. Small angel cars bearing the “E-motion” brand appeared in the ceremony, with a capacity of 4 and 3 persons.

The state has worked to provide the infrastructure for electric cars by establishing charging stations inside petrol stations, with the beginning being with 12 charging stations in cooperation with the national stations of the armed forces, and the Egyptian company, Rivolta, has opened 65 stations in 7 governorates, and the company intends to reach its stations to 300 stations by year 2020.

The cost of manufacturing the station ranges from 700 thousand to one million pounds, and the freight cost is 60 pounds, sufficient for the car to travel 320 kilometers, and the charging units vary according to need, as buses need 8 hours to recharge, and there are fast charging units that take 45 minutes, while small cars can be shipped at home.

The basic class of the car reaches a top speed of 150 km / h with a capacity of 145 hp and a driving range of more than 400 km per charge, and contains advanced safety systems such as ABS, EBD, ESC, BA, TCS, HSA.

In addition to multiple luxury features, such as sunroof, electric chairs, control screen, air conditioner with plasma technology, and additional safety systems such as 360 ° Surround Vision, BSD, Reversing Radar Tire Pressure Indicator.

The aim is to reach the largest possible percentage of the local component, and the Nasr Automotive Industry Company begins its production of the electric car at a localization rate of 50%, then the plan expands to deepen the industry by establishing a center for research and development with the participation of national cadres and specialized Egyptian companies in cooperation with the Egyptian academic institutions.

Egypt aims to produce 25,000 cars annually, and according to market studies, it is expected that the volume of demand will increase with government support and incentives expected to double this amount.

Facilitations in customs tax

In an attempt to attract consumers to use electric cars, the Egyptian Ministry of Finance decided to provide new facilities in calculating customs tax for used passenger cars that operate with an electric motor or two motors for payment (electricity, gasoline).

The decision included granting used passenger cars that operate with an electric motor or two motors for payment (“electricity, gasoline”) a 10% discount from the “FOB” value, provided that the import rules are fulfilled, which are returned to Egypt from the first of October for the model year until the end of September of the following year.

The decision also included granting used passenger cars that operate with an electric motor or with two motors to pay “electricity, gasoline” that meet the import rules, which are returned to Egypt after the end of September of the year following the model year, a deduction of 10% of the value “FOB” for each year of the following two years. Starting from the month of October of each year, and granting a 5% discount for each of the following years starting from October of each year, and in all cases the discount rates do not exceed 50%.

Norway has taken the initiative to take tax exemptions, exemptions from fees and other incentives, in order to promote electric cars.

Consumer apprehensions

Despite the expansion in the electric car market, there are several concerns among consumers, as the high cost of owning an electric car is a major reason for the reluctance of many citizens to buy this type of car, but with the technological development, many manufacturers tend to produce models at low prices to become more affordable. everybody.

Some consumers hesitate to buy electric cars, as Karim Tariq, one of the citizens, points to the high prices of electric cars compared to those powered by gasoline, as well as the lack of spare parts, considering that what will be saved from the price of gasoline will be doubly spent on the battery and the price of the car.

Ibrahim Mustafa, one of the citizens, agreed with him, as he believes that the main obstacle to acquiring an electric car is the high price, in addition to the high price and limited life of the blanket.

On the other hand, Arendt Ellenhorst, an automobile analyst at Bernstein Research, warned that the momentum in the electric car market may diminish when governments stop supporting this type of car, according to a report published by the Wall Street Journal of America.

The market is very sensitive to government and corporate discounts, and once the subsidies are withdrawn, electric car sales will collapse by at least 30-40% for a quarter or two quarters, Ealingorst said.

This is unlikely to change until later this decade, when battery prices will drop due to new technology and competition.

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