It wasn’t long ago that relatively low fuel prices put the brakes on momentum for alternative fuels. But electric vehicles (EVs) appear to be defying that trend, even as conventional fuel prices remain low.
Consider the recent headlines. Norway intends to ban the sale of new diesel- and gas-powered cars and trucks in favor of EVs by 2025. China is planning to follow suit by 2030, with France and the U.K. each setting their targets for 2040. And, as of press time, the state of California is considering its own ban on non-EVs, which could have a huge ripple effect throughout the U.S. market.
Then there are major automakers – beyond Tesla – pushing the pace toward electrification. In October, General Motors announced that it’s pursuing an “all-electric future,” with 20 new fully electric models to be launched by 2023. Volvo, Aston Martin and Land Rover have introduced similar plans.
And according to a recent report by Bloomberg New Energy Finance, EVs could represent the majority – 54 percent – of new car sales by 2040.
So, what’s driving this momentum toward EVs? Here are three factors.