Are electric engines the tortoise competing with the combustion engine’s hare? In the late 1800s, the Paris-Rouen race for horseless carriages included 102 vehicles fueled by steam, petrol, electricity, compressed air, and hydraulics, reports The Economist. Not a single electric engine made it to the starting blocks. (The internal combustion engine won.)
Oh, how times have changed!
The International Energy Agency’s Global EV Outlook 2017 reported:
“New registrations of electric cars hit a new record in 2016, with over 750 thousand sales worldwide. With a 29 percent market share, Norway has incontestably achieved the most successful deployment of electric cars in terms of market share, globally. It is followed by the Netherlands, with a 6.4 percent electric car market share, and Sweden with 3.4 percent. The People’s Republic of China (hereafter, “China”), France, and the United Kingdom all have electric car market shares close to 1.5 percent. In 2016, China was by far the largest electric car market, accounting for more than 40 percent of the electric cars sold in the world and more than double the amount sold in the United States.”
Financial Times reported the UBS analysis suggests the market may be at an inflection point as the total cost of ownership for electric vehicles may become comparable to that of combustion engine vehicles as early as 2018 in Europe, 2023 in China, and 2025 in the United States.
Even though their popularity is growing, electric cars comprise a small portion of the market today. UBS expects electric cars to account for 14 percent of the global market, and more than one-third of the European auto market, by 2025.
These kinds of technological advancements are just one of the many reasons I have faith in the long-term growth prospects of our world economy. For more on my perspective, you can read my book Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend.
Weekly Focus – Think About It
“Though most of them sit idle, America’s car and [truck] engines can produce ten times as much energy as its power stations. The internal combustion engine is the mightiest motor in history.”
–The Economist, August 12, 2017
https://www.economist.com/news/leaders/21726071-it-had-good-run-end-sight-machine-changed-world-death?cid1=cust/ednew/n/bl/n/20170810n/owned/n/n/nwl/n/n/NA/54751/n (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/08-14-17_TheEconomist-The_Death_of_the_Internal_Combustion_Engine-Footnote_7.pdf)
https://www.iea.org/publications/freepublications/publication/GlobalEVOutlook2017.pdf (Page 5)
https://www.ft.com/content/6e475f18-3c85-11e7-ac89-b01cc67cfeec (or go to https://s3-us-west-2.amazonaws.com/peakcontent/+Peak+Commentary/08-14-17_FinancialTimes-Electric_Car_Costs_Forecast_to_Hit_Parity_with_Petrol_Vehicles-Footnote_9.pdf)