In: Economics
What are the relevant economic trends and forecasts for the electric automobile industry?
Electricity is treated as an alternative source of fuel as far as automobile industry is concerned and in this regard, electric automobiles are getting very popular among the consumers. Tesla is one well known brand producing electric powered cars, but there are many other automobile manufacturers who are coming up with electric cars, scooters and other light vehicles that can be run on batteries. Hence, there are favorable trends and high growth forecast for the electric automobile industry. It is estimated that the industry is growing with annual growth rate of over 22%, while it is forecasted that the global electric automobile industry will acquire a size of over $56 Billion by 2025, whereas it was only $12 Billion in the year 2017.
Here, the one factor that is detrimental to the growing demand is the price of the products. In general, the electric automobiles come at a higher price in comparison to the other similar gasoline models. It hinders the demand and people opt for the gasoline models. Hence, if the electric automobile manufacturers want to let the industry grow and expand, then they should focus upon the cost part of it and make it affordable for the common people.