It was bound to happen sooner or later.
The days of gasoline-powered engines appear to be waning a bit as more and more consumers are switching to cars fueled by alternative energy sources. Even the word fuel appears to be a misnomer in some places these days. More and more, people are buying hybrid cars and vehicles powered completely by electricity.
This is a trend that’s expected to continue according to BloombergNEF’s 2019 Electrical Vehicle Outlook.
The report, described on the company’s website as its “annual long-term forecast of how electrification, shared mobility and autonomous driving will impact electric vehicles will impact road transport from now out to 2040,” covers light-duty passenger vehicles, commercial vehicles, buses, and two and three-wheeled vehicles.
The report projects that electric-powered vehicles will make up 57 percent of global passenger car sales by 2040, while 81 percent of municipal buses will be electric-powered. At the same time, sales of diesel and gasoline vehicles will continue to decline. In addition, electric vehicles will account for 56 percent of light commercial vehicle sales in Europe, the US and China within the next two decades.
“This trend and these projections are not surprising,” says Michael Majeed, a financial services executive and consultant based in Toronto, Canada with an extensive background helping companies position themselves for growth.
An accountant by education and a business growth advisor with extensive experience, Majeed works as a senior financial consultant and regional sales manager at Arck Innovative Consulting Corporation in Markham, Ontario, where he’s been responsible for leading tens of thousands of dollars worth of mergers, acquisitions and other deals while helping others with cost containment initiatives related to operations and hiring.
He says that all signs are pointing to the industry’s continuing rapid growth.
“The demand for electric vehicles is skyrocketing right now around the world,” says Majeed, adding that, “interestingly, here in Canada, it’s happening at a less-rapid pace than elsewhere, accounting for only 0.4 per cent of worldwide electric vehicle production.”
Michael Majeed also comments that the business of producing electric cars is a worthwhile endeavor given the projections regarding future marketplace dominance. “We all know about Elon Musk’s Tesla,” he says. “A few years ago it was rare to see one on the road, and today you see them everywhere.” Today, he says that virtually all the major car companies have electric vehicles or hybrids available for sale. “From a production standpoint they’re actually easier to build than traditional gas-powered cars because they have fewer moving parts.”
He also says that the electric automobile industry will likely dramatically change the economy. “Some say an increase in electrified personal transportation will drive companies to create more jobs,” he says. “For example, electric cars need more technology, which is designed and produced by adding workers. Also, there will be a need for jobs in sectors related to auto manufacturing, including battery companies, charging station developers, maintenance facilities, research and development, and others.”
His comments are echoed in a report on clean transportation and vehicle electrification published last year by Berkeley Economic Advising and Research in traffic-heavy California. The report was cited by Fereidoon Sioshansi in an article on driver.io in which it’s noted that, “the manufacturing of fuel-efficient vehicles has already created 14,776 jobs in California — and more indirect employment could be generated through increased demand for charging infrastructure and utility load.
He also envisions customer demand continuing to grow and flourish. Although old habits die hard and there will always be a percentage of the population who simply prefer gas-powered cars and trucks, the fact is that electric vehicles are much cheaper to operate than conventional vehicles.
“Drivers who switch to electric vehicles,” says Majeed, “will not only support these environmentally friendly and user-efficient companies through their purchases and recharging fees, but will also save money in the long run, giving them more disposable income to spend in other sectors of the economy. These actions will keep money moving through the economy and drive job creation, even in industries not related to producing electric vehicles.”
In Toronto, things are now changing with regard to electrified transportation. In January, the city’s first-ever strategy was introduced in city council. The proposal seeks to make all Toronto transportation electric by 2050. The first step is to create the infrastructure needed to accommodate 220,000 electric cars, about 20 percent of public vehicles, by the year 2030. Currently there are only about 6,300 electric vehicles in Toronto, fewer than one percent of all registered vehicles.
“This is an excellent opportunity,” says Majeed, whose intimate knowledge of the city’s business landscape tells him that Toronto could easily play a major role in developing an electric auto industry. And if this does happen, Michael Majeed says he’s ready to get involved.
Michael Majeed says he’s excited about the economic benefits related to electrified vehicle transportation and continues to watch — from the sidelines at present — as the industry grows around the world. He says it’s an advantageous situation for everyone, from manufacturers and owners of ancillary businesses to drivers and the general public. When you combine cost savings, employment, cleaner air, increased energy efficiency, and a number of other factors, it’s clearly a winner.
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