COVID-19 breakdown has opened up a new era of digital transformation. It has affected almost every sphere and changed it to make it easier for people to perform daily tasks in new conditions. Even though restrictions seem to subside, things that have already been affected and changed will stay with us and only improve within time.
While we have already seen lots of things COVID provides, like remote work and the development of applications in the healthcare sector, not everyone knows that the car industry is also in its changing times. Economic shutdowns reduced the tax revenue required to buy and maintain government vehicle fleets. Experts even say that public transit agencies have probably been hit the most within municipal entities. To be more specific, ridership plummets by up to 97%. At the same time, some of the transit operators are close to bankruptcy, making some bus services even face permanent closure.
When talking about the private sector, COVID-19 and its consequences have increased interest in private vehicle use since customers reported they feel more protected and safe from the virus in their own cars rather than using public transport. Not only those who have already used a car start to use it on a daily basis, but those who haven’t had a car started to consider buying a vehicle for them.
At the same time, people started to consider our ecology, so regular cars are less popular among Millenials and Gen Z. Governments also encourage modern consumers to switch their cars to electric vehicles as it expands their own electric vehicle (EV) fleets and grows their economies.
4 Reasons to Invest in EVs in 2022
Considering the issues caused by COVID-19, 2022 is the best time for vehicle owners and operators to invest in EVs. While private cars are important, governments also consider investing in electric buses. Speed up adoption of the electric vehicle during the pandemic can offer the following benefits:
Spur the Economy
The International Labor Organization found out that over 14 million employees have been fired or downgraded by the pandemic only in the US and Europe. Therefore, providing more electric vehicles and developing this electric infrastructure can almost immediately open new jobs and spur sustained economic activity.
Experts predict that only the United States will require 330,000 public charging outlets which is roughly $4.7 billion in total EV infrastructure investment by the end of 2025. Therefore, the EVs adoption will offer a net benefit to the entire job growth, while experts also estimate that the US and Europe combined will get 2 million new jobs by 2030 related to the EV charging stations and maintenance sectors. There is no better way to spur economic activity than one that requires a large upfront investment and provides long-term cost savings.
Even though purchasing an electric car has large upfront costs, they have been shown to be a cost-effective solution together with a lower total cost of ownership that saves money in the long term. Studies found out that the ownership cost of e-cars will be less than owning a regular car in as little as three years of use.
Create New Revenue Streams
The modern market is still looking for new opportunities to get revenue. And electric vehicles seem to provide additional uses and revenue streams, especially those having big batteries like delivery vehicles and buses. In times of crisis, heavy-duty electric vehicles can effectively work as a stable electricity source for hospitals and other essential services by offering vehicle-to-grid solutions.
For example, a company called Dominion Energy, located in Virginia, replaced up to 50 diesel buses with EVs in 2020 while also having plans on extending the number to over 1,000 vehicles by the end of 2025 with state approval. The company says that once this plan is completely implemented, the batteries in the bus fleet would be able to store up to 105 megawatt-hours of electricity, allowing them to power more than 10,000 homes.
Retain Local Air Quality Improvements
Scientists found out that air quality in 2020 has improved in 65% of the cities analysed compared to 2019. This is mainly because since COVID-19 started, people have stopped using cars and buses due to restrictions. In contrast, electric vehicles have no tail-pipe emissions, meaning they produce less heat and less noise.
Therefore, choosing electric vehicles over regular cars when restrictions are gone will help retain air quality and significantly lower health risks in communities. These benefits are also linked to less money on healthcare services and better ecology in the long term.
How Can Governments Support More EVs?
Grow Charging Infrastructure
Even though EVs are gaining popularity all across the world, poor charging infrastructure seems to be an urgent problem in adopting these vehicles. Development of new charging stations and creating this infrastructure provide confidence to owners in overcoming perceived range anxiety. New charging infrastructures are also suggested to help in managing the electric load on the grid, while in some cases, these vehicles can also be used as energy storage resources. This is why focusing on the widespread deployment of public charging infrastructure and the creation of more charging spaces; the government will soon reap positive incomes out of this investment.
Support EV Purchases in COVID-19 Relief Packages
Since COVID-19 brought many issues to most countries, both government and international institutions have provided relief packages to many companies and small businesses to help them get back on track. This is why governments can and should prioritize businesses related to electric vehicles to stimulate the use of these cars and grow the infrastructure.
Electric vehicles are the new trend in 2022. This is because these cars provide many opportunities for businesses, can open new vacancies, contribute to better ecology, reduce air pollution and help countries to create more sustainable infrastructure. However, the trend is only in its development stage, so this article shows you why EVs are the future of our world.