According to market research using data from September & October, the prices of used electric cars are down by approximately 30% compared to last year.
Although the lower prices may be good for buyers, they could also raise concerns about how low resale value might hinder EV adoption by mainstream consumers. Falling prices fuel a debate about whether EV demand has faltered.
The mainstream appeal of cars like these is not yet there,” Karl Brauer, an executive analyst at iSeeCars (a search engine that specializes in used cars), said. “They are still too expensive and have too many limitations when it comes to how they can be used.”
J.D. reports that EVs still account for a greater share of new car sales – more than 8% in October this year. Some say that fears of a downturn are exaggerated.
Scott Case, CEO of Recurrent, a company that provides vehicle history reports focusing on battery life, said, “people are broke and interest rates are high.” The demand for EVs does not pose a problem. The affordability is the issue.
Several studies confirm what many EV advocates insist: the vehicles are less expensive to own than cars that burn gasoline — owners do not have to pay for gas. Maintenance costs are lower since EVs tend to have fewer moving components.
The residual value of a vehicle is an important factor when calculating the cost of owning it. Edmunds, a provider of automotive data, stated in its Q3 Used Vehicle Report 2023 that ” low resale value for used EVs may deter new EV purchase and EV adoption generally.”
Environmental and Health Challenges
Five months after the Rio Summit 2012 on sustainable development and green economy, an agreement was reached for the extension of the Kyoto Protocol. This Protocol, which was signed in 1997 with the intention of imposing binding restrictions on industrialized countries in order to reduce their emissions, was set to expire by 2012. The landmark agreement is subject to two deadlines: (a) 2015 for the development and implementation of an expanded Kyoto Protocol and (b) 2020 for its execution. Unfortunately, global emission levels could not be reduced in the lead-up to 2012. After a first decline in 2008-2009, emissions have increased again. In 2012, greenhouse gas emissions were 20 % higher than in 2000, which in absolute terms amounts to 50 gigatonnes more carbon equivalent [4]. Transport already consumes over 50% of global oil supplies, with road transport taking up 75% of that share. The fact is that fuel used for transportation (at least in the majority of industrialized economies) is taxed higher than fuels used for heating or electricity.
Global challenges include reducing energy demand and reducing emissions from vehicles. To meet these challenges, it is crucial to improve fuel efficiency and reduce emissions. The increase in vehicle emissions is evident, especially in big cities, where cars are the primary contributors to air pollution. In developing countries, the problem is worsened by an inefficient public transport system, lax emissions norms, and a slow adoption of clean automotive technology. Beijing’s air pollution has been rated as one of the world’s worst megacities. Global Burden of Disease Study (2010) states that outdoor air pollution caused 1.2 million premature deaths worldwide in 2010. This is about 40% of all premature deaths. The study found that ambient particulate (PM) from vehicle emissions was the fourth most important risk factor in China. According to the same research, air pollution was ranked seventh on the list of global risks. This alarm sounded, and efforts were renewed to implement stricter environmental standards, focus on cleaner transportation technologies, and revitalize efforts in China to jump-start the electric vehicle industry. India is another example of a developing country that suffered from similar levels of air pollution in 2010. This led to 620,000 premature deaths. The preference of Chinese consumers has shifted from fuel-efficient midsize, compact cars, sedans, and hatchbacks to large sport utility vehicles and hatchbacks. The result is that China’s import costs are increasing, and air pollution is worsening. This also forces regulators to tighten up regulations. Automobile companies have responded by opening new assembly plants and engine factories in order to satisfy the growing demand for automobiles in such a large market.
