The automotive industry is hurtling toward a future that will change transportation the same way electricity changed how we light the world. Electric and self-driving vehicles will alter the automotive landscape forever — it's only a question of how soon.
Like any revolution, this one will be created by market demand.
Most consumers surveyed during our clinics said they want at least 300 miles of range. And if you look at the market today, which is driven by early adapters, the numbers bear that out. The vast majority of electric vehicles sold — almost 90% — are six models with the highest range of 238 miles or more — three Tesla models, the Chevrolet Bolt EV, the Hyundai Kona and the Kia Niro, according to IHS Markit data.
For EVs to gain widespread acceptance, manufacturers, charging companies, industry groups and governments at all levels must work together to make public charging available in as many locations as possible. For example, we are seeing increased partnership activity between manufacturers and charging station companies, as well as construction companies that build large infrastructure projects, with the goal of adding thousands of additional public charging stations in the United States.
Looking forward, we think electric vehicle propulsion systems will achieve cost parity with internal combustion engines within a decade, probably sooner, and will only get better after that, driving sticker prices down and widening the appeal to the average consumer. That will be driven by a number of factors, including improvements with each generation of batteries and vehicles, as well as expected increased regulatory costs on gasoline and diesel engines.