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The Transition to Electric Vehicles: Challenges and Opportunities in the European Automotive Market

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Introduction -The Mainstreaming of Electric Vehicles in Europe

Chapter 1 Introduction and Business Problem

Overview of the research

Electric cars are hitting the mainstream in Europe. Electric vehicles possibly would reach a "tipping point" with regard to popularity by this year or next, according to the European Transport Climate Federation. Public worries about air quality and waste reduction have driven businesses and individuals to explore broader adoption of electricity-driven vehicles. Government emissions reduction targets and new legislation have further stimulated the production of electric automobiles. A study of the year 2019 discusses about the short along with the medium-term output of electric passenger and battery-electric cars in EU named, "electric boom: carmakers' electric car plans in Europe 2019 to 2025." A number of studies explores consumer preferences in the automotive sector in relation to models of electrically driven cars, carmaker strategies as well as production sites to assess the adequacy of EV interaction in order to achieve the carbon dioxide targets. Projected car manufacturers are, in practice, prepared to provide EVs on a wider scale. In 2019, there were just under 100 available electric cars on the European market, and by 2022, this figure will double by more than 200 cars (including hybrid plug-in,electric fuel cell vehicles as well as electric battery) (Gómez Vilchez and Thiel., 2019). Today, 28% of the total carbon emissions of the European Union are emitted by the transport sector (Jung., 2020). Transport emissions within the European Union should preferably be reduced to zero before 2025, in order to achieve the goals set out in the agreement of Paris in 2016. Several governments throughout Europe sees manufacturing and adopting electric vehicles as an efficient approach to this issue. For this reason, a number car manufacturers throughout Europe are constantly developing new technologies to improve the efficiency of the electric cars to make them lucrative to the consumers. In this dissertation, the learner wants to investigate a number of technical developments achieved by the leading automobile companies along with the main business drivers that influences business organizations to adopt this new technology

Background of the research

More than 60% of the established global population is projected by the OECD to live in urban environments (Holmberg and Erdemir, 2019), which is an explanation for a greater vehicle population. In 2007 there were some 240 million passenger cars in the EU-27 as well as sales of new cars in that year amounted to almost 17 million (Pattet al.,2019). Despite changes in controlled transport air pollution, the population of urban areas still faces higher risks, as traditional vehicles are directly impacted by their near proximity to the pollutant source. On the one side, growth means that people usually travel less than 100 km a day while commuting in their urban world (Webb., 2019). On the other hand, in cities, a large proportion of all goods are transported as well as delivered. The acceleration and deceleration of speeds and traffic delays are the worst of urban traffic, hence energy efficiency as well as emissions per km. For urban electrically powered road transport, several business cases exist, since the TCO or else Total ownership cost already is lower than traditional means.

The above-mentioned reasons make the urban area the cradle where road electrification can have a maximum potential, both environmental and energy efficiency.There are many bottlenecks on the use of this technology, mainly: the price of electric vehicles purchases, their small size (range anxiety), and their long charging times by the public and economic operators along with promotion by several European governments.

Research rationale

Electric vehicles are marketed as key contributors to the development of a sustainable transportation system and are planned to improve Europe's prolonged dependency on the internal combustion engine and oil in order to serve its transport needs. Electric cars will play an important role in the EU's target of reducing greenhouse gas emissions by 85% to 96% by 2050 as well as moving further towards a low-carbon future, in particular when driven by renewable energy sources. Generally, electric cars are much more effective in terms of energy production than fossil fuels. Increased use of battery-powered electric cars could result in significantly lower emissions of particulate matter, air pollutants of nitrogen oxides as well as carbon dioxide, the main cause of problems in terms of air quality in many European cities, depending on how electricity is produced. For this reason, modern car manufacturers throughout Europe are constantly leaning on the production surge of the electrically driven vehicles. Therefore, it is utmost important to the learner to investigate the main business drivers in this specific sector of the automobile industry and developments achieved by the leading automobile companies.

Research Aim

“To understand whether electric cars are the new future of Europe or not”

Research Objectives

  • To trace the effect of gasoline vehicles on environment.
  • To identify the reasons regarding the downfall of gasoline car market in Europe.
  • To identify the role played by European policies in encouraging the spread of electric cars.
  • To understand the economic performance of electric vehicles of today and their perspectives for future.
  • To understand the factors those are influencing the spread of electric cars.

Research questions

  • What are the effects of gasoline vehicles on environment?
  • How European policies are inspiring the spread of electric cars?
  • Why Gasoline cars in automobile sector have witnessed a downfall in the recent times?
  • How electric vehicles are performing economically?
  • What factors are influencing the spread of electric cars?

Brief Literature review

Transportation has been witnesses to be the largest source in contributing carbon emission in European countries that was reported as 27% in the year 2017 by European Environmental Agency (EEA). According to the reports, gasoline vehicles contribute up to 75% of Greenhouse gases (Contestable, 2020). Global Paris agreement, 2015 aimed to restrict the expansion of temperature over 2°C and further over 1.5°C that was resulting from global warming. In order to match up with the aim, Europe needed to reduce their transport emission up to zero. Likewise, the European government has already proposed a scenario of achieving zero emission by 2050 (Noussan et al., 2020). As the demand of low emission vehicles continued the sales of gasoline and diesel cars went down up to 27% as reported on 2017.

Likewise, the sale of electric vehicles has been witnessed to expand as reported in 2018 with the top markets being Sweden (8%), Norway (49%), Finland (4.7%), Netherlands (6.7%) and Portuguese (3.4%) (Knobloch, 2020). Passengers cars are now dominated by ICEs- Internal Combustion Engines wherein, the EU- European Union has decided to reduce CO2 emissions form passengers cars up to 15% by 2025, 35% up to 2030 and fully up to 2050.

In 2019, the sales of EV have been witnessed to expand by 44% in Europe that is the highest since 2016. New emission standards of EU – 95grams of CO2 /Km for passenger cars have been featured to boost the sales of EV- Electric Vehicles that stipulates 95 % of the fleets shall meet the standards by 2020 and 100% by 2021.

Likewise 70% growth in sales of EV has been witnessed by 3 models- Hyundai Kona, Tesla Model and Audi e – tron. Studies have estimated that the growth rate shall further expand in recent future (Hanssen, 2020).

Brief Methodology

The research shall be conducted following a pragmatic research philosophy where philosophical debates could be avoided and shall remain the best suited philosophy for the research problem. The philosophy shall give freedom to use any techniques and methods for better understanding of the research problems thus, is quite suitable for this dissertation. The philosophy shall be supported by the mixed method. It shall assist to explore the research questions from depth making the research more practical in terms of impact and outcome (Ortner, 2019). Using both primary and secondary methods the research has been conducted. Information from survey shall help to gather direct information regarding the market performance and requirements of EV in Europe and the secondary sources from recent publications and internet sources shall supported to collect in-depth knowledge related to the research topic. Involving both qualitative and quantitative data shall help to obtain more reliable research outcomes.

Research Design


Automakers has already launched 143 electric vehicles (new) - 38 PHEVs (Plug in hybrid vehicles) and 105 BEVs in 2019 and are planning for 450 additional models by the end of 2022 (Contestable, 2020). The emission regulations of Europe explains the reasons that why the launches has expanded significantly. Tesla has continued to be market leader in EV with 370, 000 unit sells globally and occupied market share in Europe to 16 % from 12% (Noussan, 2020). Likewise, the dissertation shall further reveal the perspectives of Electric cars to be the future of Europe.


Although, due to the guidelines issue by EU, the acceptance of electric vehicles is gaining quite huge popularity but the higher cost of those vehicles has limited the sales to a certain limit. Further working on the price strategy by the automobile organizations shall popularize EVs to greater extent.


The EV market has expanded rapidly but the dynamics has been witnessed to vary by region. In European markets the transition to electric vehicles from ICEs has tipped in 2019. Factors such as emission regulations and advancement in EV technologies have forces further evolution of EVs in the automobile sector. Due to the continuous expansion, it might become possible that electric cars develop as the new future of Europe.

Chapter 2 Literature Review

Electric cars (EVs) were the pioneers in the transition from horseshoe cars and other forms of transport to cars when cars arrived on the roads in greater numbers 120 years ago. Although they were leaders of the market around 1900, their share soon decreased, and a better alternative was replaced at that time: domestic combustion engine (ICEVs). There has not been much of EVs for the last 100 years. Along with ambitious predictions, many attempts have been made to regain ground but have not contributed to a sustainable revival of EVs. This was the everlasting advent of the electric car (Ortar. and Ryghaug., 2019), defined by one author. Chris Paine claims that the newly introduced electric vehicles of the 1990s were the perfect alternative to ICEVs, but were thwarted by the conspiracy between incumbent automakers and government officials (Sovacool et al.,2019).

EVs have gained traction again recently. Many consider them to be key to achieving global climate targets in the long term. The future demand trend in EVs has been outstripped by positive predictions (Morgan., 2020). Will this time be delivered by EVs? In our opinion, we clarify what EVs need to do to achieve sustainable business growth. We thus provide a broader picture of the prospects and obstacles for electricity transmission in our commentary. This can be important for many scientists, politicians and business decision-makers working on EVs.

After the decline of the first electronic equipment in the early 1900s, customers and business lost interest in this technology until the first oil crisis, when attention in electronic equipment increased again. Several new EVs with sleek designs hit the streets throughout the following years. Zagato Zele, sold under the programmed name of Elcar 2000 in North America, came on the market in the early 1970s and the Sebring-Vanguards Citicar. There were technical compromises in these cars and other EVs, which contributed to dissatisfied customer feelings.

Peugeot 106, as well asEV1 GM’s improved technical complexity, was accomplished by Electric. The introduction of these and the like EVs and the California zero-emission vehicle program have resulted in rapid and b EV deployment forecasts.

Nothing of the EVs entering the market between 1900 and 2010 became a sustainable business success, considering the reasonably high hopes of various researchers concerning the potential evolution of EVs.

While the Economics Create Logic toward automobile drivers, they turn electric:

A new generation of EVs was introduced from 2010. From 2010. Tesla Roadster, Nissan Leaf, Mitsubishi I- Miev with his sisters in Europe, Citroen C-Zero and Peugeot Ion were among the earliest and most successful. In the post-2010, new EVs used lithium-ion batteries with better technical performance (Mounce and Nelson., 2019), differently to previous EV generations which used more lead-acid, nickel-cadmium andhydride batteries/metal /Nickel. The industry's significant investments in research, growth and production of the mobile lithium-ion battery have led to an unparalleled cost-saving (Contestabile, Tal, and Turrentine., 2020). EVs has enjoyed continuous upgrades and cheaper processors, necessary for the battery management systems, electronic energy and many other vehicle systems (Sovacool, Kester and Heida., 2019). EVs have also benefited. Nevertheless, the overall ownership costs, as well as costs of EVs, are considerably higher in most countries than those of the comparable traditional cars (Chakrabartiet al.,2019).

However, it can be shown that while experts still consider the battery efficiency to be an obstacle and researchers continue to work to boost batteries (Hill et al.,2019), consumers are already electrically powered in the countries where government support policies like Norway are eliminating market blocks, which is a leading global EV share country. Interesting enough, while Norway has provided prospective EV buyers significant incentives since 1990, the incentives have only begun to be used by consumers in 2010 (D'Adamo, Gastaldi and Rosa., 2020). Subsequently, EVs became a big option in Norway within ten years from a niche bid. Norwegian leaders decided to phase out ICEVs until 2025 as early as 2016. This target is achieved by technological maturity in vehicle segments (Brenna et al.,2020), according to the National Transport Plan 2018-2019. Experience in Norway shows that most consumers consider EVs as the best option if the economy is healthy. Indeed, although traditional vehicles in Norway benefit from tax exemption, retail prices for many vehicles are lower than for comparable ICEVs (Bhagavathy and McCulloch., 2020); however, they are taxed at such a high level in Norway.

In the meantime, recent research (Smeds., 2020) has shown that even with the elimination of subsidy systems, other, possibly more successful political solutions exist for promoting EVs, with the implementation of EVs in relation to stimulus policies and to other socio-economic factors. These are based on a range of factors, such as road priority, infrastructure density charge and fuel prices, which would be of positive and important importance to the prediction of adoption of the EV system. In the absence of policy support the development of new business models to encourage the use of EVs was also investigated.


  • Targeted funding tracks Positive consumer response
  • Emissions with zero tailpipe
  • Low noise levels operational
  • Values for local air quality
  • Low cost of service
  • No use of fossil fuel
  • Enhanced experience driving
  • Public picture Positive


  • Large Electricity sticker rates
  • Long charging time and shorter range
  • Lack of appropriate charging and harmonized requirements
  • Restrictions on grid
  • Large prices for batteries
  • Small choice of model and help after-sales
  • Electricity and power supply higher emissions
  • Real-life vs certified lower range (Contestabile, Tal and Turrentine., 2020)
  • Low consumer information about EVs and related incentives
  • Lack of preference and patterns between EV Difference
  • Incentives and emerging technology sensitivity for users/publics


  • Increasing public/user consciousness of emerging technologies and rewards
  • Free parking and recharge access to roads and emission-related areas.
  • Innovative business models growth
  • May improve the protection of energy
  • Synergies with variable renewable energy sources: vehicle-to-grill and home.
  • EVs will speed up the decarbonization of the power sector by the correct policy mix.
  • Alternative battery and cell technology advancement
  • A b choice for transport decarbonization
  • Future ICEV prohibitions in cities and countries
  • New versions with longer ranges and cheaper


  • EV's market misunderstandings
  • Restrictions and product price rise in raw materials
  • Better alternative mobility solutions for low / zero emissions
  • The high price of oil and electricity
  • Incidents of defense
  • Problems with child labor as well as safety in some mines (e.g. cobalt)

EVs should be taken into account in the formulation of policies on electrification of road transport from a customer and social point of view. A series of European and global mitigation policies are provided to address the problem. The most critical forces of today's EVs are driving convenience, lower operating costs and a positive picture of the environment. From a social point of view, the main strengths are the absence of tailpipe pollution and associated air quality benefits (Mironenko and Kempton., 2020). EVs will minimize fossil oil use. This clearly distinguishes them from the low-emission but still polluting, hybrid-electric vehicles (PHEVs). However, the market performance of EVs may be jeopardized by PHEVs.

Global market share of Electric vehicles of all automobile companies

Chances of more development in the EV market are the trend of higher electrical outputs and lower purchasing costs for new models (Kumar and Alok., 2020). Free parking and charging can give major advantages for EV drivers with privileged access to commuter lines and low-emission areas.For future sales of E-vehicles, the possible future ICEV bans in countries or urban areas have major upside potential (Ali. and Dyo., 2020.). EVs will speed up the decarbonization of the energy sector with the right policy mix (Bonsu,., 2020). The network incorporation of higher renewable energy sources can be enabled by EVs (Henderson., 2020). In addition to high costs, however, many other vulnerabilities and challenges remain until electricity generators can grow into a total and sustainable success on the market.

Some electric car initiatives by famous automobile makers throughout the world


According to Reuters, Toyota, whose cars currently make up more than 80 % of the global hybrid vehicle market has announced plans to produce half the revenue by 2025, five years earlier than previously expected. Toyota will work with Chinese battery manufacturers to meet demand even though its own battery operation already exists.


Volkswagen said last year that by 2023 they would invest over $31 billion creating EVs. The organization is also committed to ensuring that by 2030, EVs make up 41 % of the global fleet. Not to mention that by the end of 2023, two years before its predictions, Volkswagen will reach its target of 1.1 million electric vehicles manufactured.

General Motors

Cadillac will be the leading brand in electric vehicle in 2019, General Motors said. The President of Cadillac said that, by 2030, most of the company models would be electric and he opened the door for the line-up to be fully electric. He also reported that Cadillac would deploy a large Escalade-like SUV, which it expects to start production at the end of 2023.


The Mustang Mach-E, an electric crossover named after the company's famous sports car, was launched last year by Ford. But the only EV Ford did not have plans to do so. The CEO of Ford reported that increased investment in initiatives to encourage electric cars is expected to create a 2022 model line-up, which comprises 40.

In 2019, Ford Europe confirmed that it would give all its future namesake plates an electric option and revealed that a fully-electric F-150 would be available in the coming years during the Detroit Automotive Show. The Blue Oval also featured 17 hybrids as well as electric vehicles both family-owned carriers and commercial vehicles (Chen et al,2020).


The first electric car, the XC40 Recharge, which Volvo expects to be sold in the US in the fourth quarter of 2020, was launched last year. Furthermore, the brand has doubled its commitment to producing 55 per cent of its worldwide turnover by 2025 and has vowed to minimize every vehicle's carbon footprint by 45% by the same year. Furthermore, Volvo said every year for the next five years it is going to release a new EV. All this is part of the initiative of the Swedish business for climate neutrality by 2040.


Honda announced in 2019 that its Honda-E-city car would at least partly be electrified in 2022, as well as any models it sells in Europe. This is a great leap from the early predictions of Honda in 2025 on a detailed line of electric cars. The fully driven Honda E and hybrid Jazz will be launching the initiative, known as Fit to US consumers.


In 2017, BMW Group predicted that by 2025, 14%-26% of its sales would be electric vehicles, a concept that does not inherently relate to electric vehicles (Brennaet al.,2020). The Bavarian brand has said, in June, to sell 24 electric vehicles by 2023 two years before the initial plan. The electric mini Cooper SE was introduced last year with a goal of "urban mobility." The 1 Series hatchback could be available in 2021 as an electric version of one of these upcoming models. BMW expects to double the sales of electro-powered vehicles by 2021 compared to 2019 and to raise by 31% in that year over 2025.


Nissan launched the Leaf Plus last year with a longer range and aims to introduce eight new electric cars by 2022. The brand introduced the concept version of their latest Ariya EV at last year's Tokyo Motor Show and by the end of the year Car and Driver announced that by 2021 a production version would hit the US. Nissan claims that in less than five seconds, the high-performance crossover runs for a single charge from 0 to 60 mi / h.

Fiat Automobiles

In 2018, Fiat Chrysler announced that $11.5 billion would be invested in electric power by 2022. In this year, at least 12 hybrid and full-electric powertrains will be offered, and more than 30 electrified platelets will be launched. As a result, the company announced last year that it would manufacture at least four plug-in Jeep hybrid models for $46 trillion investments in new and existing plants. At the Consumer Electronics Show in earlier this month, FCA began fulfilling the promise by exhibiting compass, renegade and wrangler hybrid plug-in models (Harvey., 2020).


Daimler, Mercedes-Benz's parent company, announced plans for more than 12 billion dollars in 2017 to expand its EQ electric vehicle series in order to introduce more than 11 EVs by 2022. In each model series from Mercedes-Benz, the company plans to offer at least one electric option. Daimler announced last year the construction of an all-electric G-Wagen.

Role of Technology

The electric vehicles have gained the momentum in the European industry due to the development of the various factors and elements in the technological industries. The understanding of the development of the EVs in the Europe is incomplete without the understanding of the technological implications involved in the development of the EVs in Europe especially. The technological implications in the modern times have increased in magnitude which has contributed hugely to the enhancement of the transportation services (Mounce and Nelson, 2019).

According to the report presented by Transport and Environment, 2019, the advance in the technology has brought about the increase in the production of the battery electric vehicles in the European Union. The report predicts that the increase in the number of the battery vehicles shall increase and 60% of the production of the EV in Europe shall increase by the year 2025. The prediction also has been made the reduction in the production of the FCEV and the CNG and LPG driven vehicles (Anthony Jnr, 2020). The target is set mainly due to the rising concerns for the environment whereby the reduction in the carbon footprint created due to the transportation sector needs to be reduced.

The technological implication has mainly been found in the transportation sector whereby the ICE production in the EU has shown a positive picture as well as a promising future. The technological development through the ICE production is about to replace the EV production in many of the states of the EU. The Western Europe have been predicted to be well advanced in the production of the EVs. The industrial opportunities have also been predicted to be increasing in the eastern and the central parts of the EU. The Automobile companies EU wide have shown a promising future growth as estimated by the reports by the year 2025.

The technological development has led the picture of promising growth in the country whereby the indication has also been reported that the country shall be increasing the supply of the batteries in a sufficient manner by the year of 2023. The technological advance in the European industry has led to the manufacturing of the batteries that are EV supporting and supports in the reduction of the carbon footprint as well. The battery production capacity of the country is also promising whereby it has been found that about the 16 large-scale facilities for the manufacturing of the lithium-ion battery cells have been provided by the country of Europe. The technological development this have been found to be hugely contributing to the [production and the rise of the EVs in the Europe (Pelegov and Pontes, 2018). The promising growth is also predicted if the implemn6ttaion of the AI in the EVs could be brought about by the EU industries of automobiles. This shall increase the sustainable efficiency of the EV models and bring about the success and profit as well to the companies on the European Union. The predictions made are an indication that the technological development is about to grow with time and so are the opportunities for growth for the EV producing automobile companies in the EU (Anthony Jnr, 2020).

Rechargeable Energy Storage Systems (RESS)

The RESS could be understood as the most innovative form of development and implication in the automobile industry. The technology has [proven to be most promising in the industry as it provides for the variety of the technologies, the different sizes and levels of the development and maturity is as well provided by the variety of the RESS. Technology has been the most effective aspect in the development of the RESS. The RESS has the different technologies that are namely the fuel-cell, electrochemical storage, CAES or the compressed air energy storage, flywheels. The RESS is the technology that has made the possibility for the electrified vehicles manufacturing in the EU and world-wide.

According to the study conducted by Perujo, Grootveld and Scholz, (2012), the variety of the RESS for the EVs is a technology that enables the understanding of the various aspects of the EVs that are achievable in the market and are likewise influenced as well by the RESS. These could be listed as the utility, longevity, complexity in maintenance, energy efficiency, weight, etc. The understanding also has been provided in the study that the hybrid power packs are beneficial for the EVs. The study shows that the hybrid power packs include the high density of the fuel cells have a high energy density of the capacitors. The study also gives an account of the batteries and the super capacitors in the power packs that shall be helpful and promising for the future for reduction in the obstacles and queries regarding the use of the technology especially for the adopters at the early stage.

Battery Production for the EVs in EU

According to the reports presented in relation to the transport and environment, (2019), the manufacturing process of the EVs are largely influenced and enhanced in the EU through the production capacity increase in the battery production industry of the EU. The report shows that the technology of the lithium-ion batteries are most utilized and required by the growing market of the EVs in the European Union. The supply of the batteries and their production is the factor that invariably has been found to be impacting upon the development of the EVs in the automobile industries of EU (Mounce and Nelson, 2019). The report states and predicts that according to the dataset provided by the IHS that the demand is expected to rise at a huge rate for the lithium-ion battery. The estimated rise is that of the 112GWh by the year of 2023. The demand is most likely to be increased from the EV producing sectors. The demand is expected to be more from the BEVs than the PHEVs in the industry (Anthony Jnr, 2020).

It has been found in the papers that the size of the batteries influence the demand of the LIB batteries in the market. The understanding has been gained that the battery capacity of the EVs is expected to rise between the span of 2019 and 2025 (Pelegov and Pontes, 2018). The technologically improved batteries hence are the most important factor that influences the demand for the batteries amongst the companies. The low cost and the high energy density are the most driving factors for the increase in the demand for the LIB batteries in the EU automobile industries.

According to the study presented by Rezvan, Jansson and Bodin, (2015), the adoption of the EVs is an integral aspect for the EU countries. The EVs are well known as the PEVs or plug-in electric vehicles. The study has found that there are also the presence of a variety of AFVs or the alternative fuel vehicles amongst which the major types are those of the plug in hybrid electric vehicles (PHEVs), extended range batter electric vehicles (E-REVs), battery electric vehicles (BEV) and the HEVs or hybrid electric vehicles. 

The understanding has been generated from the paper that technological advances have brought about implications for consumer behavior and the behavioural practice of the consumer in adopting the new technologies.

Transportation and environment

According to the study presented by Broder, (2009), the transportation sector has been found to be the highest contributor to the environment pollution in the major countries 0of the world. It has been found that in the UYS the transportation sector alone contributes to the 30% of all the energy use in the country. Thus, there arises a need for the reforming of the practices of the transportation sector (Anthony Jnr, 2020). The environment impact that the transportation sector has had in the major countries of the world especially in the urban areas, indicates that the redesigning of the automobile industry. The gasoline and the tailpipe emissions are the major source of the pollution of the environment the urban areas of the countries. The transportation sector as per the various reports on the environment and pollution, has been highly influenced by the sales of the cars and the cars are mostly the highest contributor to the environment pollution as well. The study has found that the point source of the gas emissions is mainly the cars in the transportation industry. The methods of reducing the pollution that is produced from the vehicles mostly the cars have been analyzed in practice in the name of scrubbing that tend to reduce but not fully stop the emissions of the gases from the cars (Mounce and Nelson, 2019).

The total carbon footprint could be reduced to a huge level through the manufacturing of the cars that are electrically driven. The studies show that the power generation from the power plants are the major source of the pollution and gas emissions on the environment (Pelegov and Pontes, 2018). The vehicles that are powered by the gasoline sources are major sources of the pollution in the atmosphere. The pollutant gases that are most harmful for the environment and are also emitted by the vehicles are those of the hydrocarbons, NOx, SOx, etc. The emission of the gases can bring about the harmful impact upon the public health. The air quality degradation has taken place in the recent times. Broder (2019) has also found the electric cars as the only trajectory through which the reduction in the gasoline emission in the atmosphere can be brought about (Anthony Jnr, 2020).

According to the study conducted by Devogelaer and Gusbin (2010), the EV programs are an important aspect for the target of attaining the climate policy. The study gives the understanding that the influence of the climate policy and the scenario of the energy production and use could be understood and addressed through the development of the EV. The EV production has been found as the aspect that are predicted to be impacting upon the climate change. The study has also found that the different rates of the EV penetrations have an impact upon the demand of the electricity. The paper addresses the policy making aspects for the EF production process and delineates that various aspects such as those of the transport efficiency, change in climate, oil independency, retention and creation of jobs and employment, policy measures, etc. 

The understanding could be generated that the climatic impact of the transportation sector is immensely adverse and the reduction of the emissions of the harmful gases could be attained through the use of then alternative energy driven vehicles such as those of the EVs.


The study of the literary sources has shown that there are notably many of the challenges and risks entailed around the adoption of the EVs in the industrial sector. The bottlenecks that are associated mostly with the EV adoption have been studied by various of the scholars and researchers. The papers that have been dedicated to the analysis of the challenges entailed around the adoption and use of the EVs have indicated towards similar forms of problems in the industrial societies of the major countries (Pelegov and Pontes, 2018).

According to the paper presented by Perujo, Grootveld and Scholz, (2012), the major challenge that are entailed around taking up of the EV technology by the operators at the economic level and the public are those of the price of purchasing the vehicles, limited range of the vehicles and longer time taken for the charging of the vehicles. The challenge has also been found that battery technology (Pelegov and Pontes, 2018). The improvement in the battery and their capacitors can bring huge changes in increasing the efficiency of the EVs. The EVs when integrated with the grids of the smart electric implications of the future can bring about the new scope of development in the industrial and automobile sector. The integration with the automatic form of communication technologies are also an important sector that are worthy of research. The integration has been delineated as the ways through which the barriers in the smooth development of the EVs in the automobile sector.

According to the study presented by Rezvani, Jansson and Bodin, (2014), the barriers in the adoption of the EVs are inevitably present in the automobile industry. The study has found that the drivers for adopting the EV amongst the automobile sector are mostly those of the symbolic meanings, innovativeness, emotions, pro-environmental attitude, identity. This indicates that the emotional attachment and the sentiments that are involved around the adoption of the EVs in the automobile sector are the factors that are influencing in nature for the adoption of the EVs. However the study has been able to delineate the factors as well that act as a barrier to the smooth adoption of the EVs. These are mostly the purchase cost of the electric vehicles. The authors have found that the purchase cost becomes the most integral barrier that leads to the less popularity and demand of the EVs amongst the automobile industries. The low cost of running the vehicles however has been found to be a key factor that increases the sale of the EVs in the automobile industry. The author also has found the on the spot experiencing of the EV can be highly useful in bringing about the increase in the sale of the EVs. The negative evaluation associated with the EVs are also a factor which with the experience as well doesn’t tend to change much to an extent (Pelegov and Pontes, 2018).

Hence it could be said that the EVs are a challenging aspect and in order to fully implement the EVs in the automobile industry in the next 10 years, it is necessary that the countering of the factors that reduce the rate of adoption of the EVs in the automobile industry should be catered to and solved (Anthony Jnr, 2020). The future that the EV has in the coming ten years span is promising in nature given that the addressing of the challenges and issues in relation to the EVs is performed.


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