Electric cars are stuck between a rock and a hard place. The current conditions of the world have not been kind to industry. The EV market has been no exception. There is always a silver lining to things. While the short term may look not as profitable as anticipated, the future still looks bright.
Gas Prices Lower But Do Not Stop Electric Car Sales
Prior to the events of COVID-19, both Saudi Arabia and Russia went into a gas price war. Each country decided that they would go into a competition for the lowest gas prices. This would increase production and remove the cap that they previously had. Having high production would also lower the prices of gas globally. This would give them a reason for further production if the demand was matched.
Unfortunately, things didn’t go as planned. Oil is now currently sitting at below $0 a barrel. WIth so many people not purchasing oil to fill their gas tanks, the price will stay low for a while. This may hinder the progress of electric cars due.
One of the major selling points for electric vehicles is that many drivers do not wish to be a slave to the pump. If they feel their wallet is being hit too hard, then they move to alternative measures. Since gas is so low, the projected increase in EV purchases has gone down.
Fret not. Even with current global pandemics, countries like Norway have opted for an all-electric car market by 2025. In countries liker Germany, electric cars have now taken up approximately 10% of the new car market.
Electric Cars Continue To Sell Despite Global Issues
All car sales have taken massive hits. Along with every other industry across the globe. For many auto dealers, they have reduced their number of employees or have moved to online shopping. For new electric cars, this hasn’t been as much of a problem.
Reputation is still holding the key to the industry’s success. For those who are still currently employed and are shopping for a new car, they are being received with open arms and significantly low prices and high incentives. The tax deductions via CA have helped to sell EVs as well as the solid reputation of future thinking.