The switch to electric vehicles is often viewed as a result of government efforts to reduce CO2 emissions. But electric vehicles will soon become the cheapest option for many buyers of cars and commercial vehicles, regardless of environmental targets. Cost, not carbon policy, will drive mass adoption. Emerging markets are already leading the way, and the rest of the world will follow. Many analysts assumed that emerging markets would lag behind European and North American rates of electrification. In fact, commuters in countries such as China will electrify more quickly. Small, low-powered electric vehicles, including two and three-wheelers, are ideal candidates for electrification because their light weight means they can run on comparatively cheap batteries. China’s government is highly focused on urban pollution. And China, which has not been competitive globally in diesel and petrol cars, is keen to build automotive champions that can compete around the world.
FT 9th April 2018 read more »