Why is the automotive industry shifting its focus towards the electric vehicle segment?
The automobile industry is undergoing a massive transition process in the past few years. And in recent days, it has gotten even faster and the future seems to be so good. Now, to be honest, this change must have been done at least a decade ago and we are actually slower in that perspective. Even though the transition started a few years back, it never gained enough traction in the automobile industry over all these years. We are of course talking about the transition from internal combustion engines to electric vehicles. There is a sudden increase in the number of electric vehicles launched this year even during these pandemic times. And this transition is absolutely the right move to do so given how governments all over the world have started to take environmental protection a little bit more seriously. Not just that, manufacturers like Tesla who started from nothing a few years back are now one of the most valued companies in the industry. Tesla’s market value has skyrocketed over the past few months and it easily beats the likes of Ford Motor Company, General Motors, Fiat Chrysler Auto, BMW, and the Volkswagen Group.
Now, this is really big given how long these manufacturers have been in the industry and how they are getting thrashed by a relatively new manufacturer with very low sales figures compared to them. The answer to all this is very simple on why Tesla is valued so much these days. Tesla makes only electric cars in the automotive industry and all of their vehicles have great performance and range. Tesla changed the face which electric vehicles had in the past which meant they were boring and sad. Tesla made electric vehicles fast, exhilarating, and so much more fun. Of course, they have their fair share of problems like the dealership network and long waiting lists. But still, as a whole, a Tesla vehicle meant much more value in whatever segment it competes. And especially in the United States, where you have a generous amount of Tesla Superchargers all over the country, you do not have to worry about getting stuck somewhere in the middle of the road. Every manufacturer wants a piece of this cake and thus have all started to shift their focus to electric vehicles.
It is also very important to note that the major players in the automotive industry have been around for a very long time, unlike Tesla which was a totally new manufacturer when it started to sell electric vehicles. The Big Three of the United States which includes the likes of Ford Motor Company, General Motors, and Fiat Chrysler Auto have been established very well with the customers in the United States. And all these three big three manufacturers have great infrastructure all over the country along with very high capital to play with compared to Tesla. Also, they have a very strong dealership network all over the country, and the demand for the models will be much lesser as they can produce more units in less time. And let us not forget about the German stalwarts which include BMW, Audi, and Mercedes-Benz. All these three manufacturers already have quite great electric vehicles in their lineup and are doing good on sales too.
Manufacturers like Jeep have already told that they will electrify their entire SUV lineup with electric power by 2022. Now that is a big promise to make and we are sure a brand as big as Jeep will definitely stick to it. The 2020 Jeep Compass is a great SUV in its segment offering almost everything you need from a mid-size SUV. The 2020 Jeep Compass Interiors are also spot on with good quality and lots of features onboard it. These combined with its popularity in the United States made it a successful model. And thus it seems very fair for Jeep to push for the fully electric vehicle strategy by starting with the Compass. As the Jeep Compass is one of the most popular models for Jeep, this would make it, even more, easier to sell them as an electric SUV. Not just Jeep, almost every major manufacturer in the United States have already started to shift to the electric bandwagon. Ford Motor Company, one of the iconic and popular American manufacturers has already started introducing various models which are all-electric vehicles. And Ford has importantly given electric treatment to all of its popular models that made it successful in the United States automotive industry. These include the likes of the world’s most popular pickup truck which is the Ford F-150 and the Mustang. Ford is said to unveil an entirely electric F-150 which is really like making a huge statement given that the F-150 is also the world’s second-largest all-time highest-selling vehicle.
With governments all over the world making it very stringent with the regulations along with great subsidiaries for an electric vehicle also does a big role in shifting the focus toward them. Also, electric vehicles are good for the environment in lots of ways unlike the traditional internal combustion engine equipped vehicles. And unlike the early days where an electric vehicle was meant to be boring, slow, unenthusiastic, and bland to look these days the story is totally different. The fastest production car is an electric sedan and some of the world’s coolest-looking vehicles are electric ones. The main concern over buying an electric vehicle was regarding the range and reliability. But in the past few years, manufacturers have started to pack quite big batteries in their cars giving them a great amount of range. This combined with the vast amounts of charging stations all over the United States means that unlike before owning an electric vehicle now will be a fuss-free experience. Reliability concerns have also have reduced and in fact, it is the electric vehicles that have the least moving parts thus ultimately reducing the number of possible issues.
All these reasons make major manufacturers shift their focus towards electric vehicles. And the move by companies like Jeep which has decided to make their popular 2020 Jeep Compass a whole electric vehicle shows the trust and confidence these manufacturers have in the era of electric vehicles.