Electric vehicles (EVs) are experiencing a rise in popularity over the past few years as the technology has matured and costs have declined, and support for clean transportation has promoted awareness, increased charging opportunities, and facilitated EV adoption.
The question on every buyer’s mind is should I buy, take a loan or lease these EVs?
While there are pros and cons to every option let us examine some critical factors impacting the decisions of buyers.
1. Technology
2. Government
3. Auto Manufacturers
Technology
Battery technology is the new bull’s eye for companies striving to meet the world’s growing appetite for electric vehicles.
Battery companies and automakers are investing heavily to build cheaper, denser and lighter batteries. New technologies run the gamut. Some give old battery chemistries a new twist for incremental improvements. Others change the battery form factor or battery assembly for significant gains in performance or costs. In the future, radically different chemistries and other big breakthroughs are expected to emerge.
Government
Electrifying transportation is a promising approach to alleviate the climate change issue. The adoption of electric vehicles in the market has introduced significant impacts on various fields, especially the power grid. Various policies have been implemented to foster electric vehicle deployment and the increasing trend of electric vehicle adoption in recent years has been satisfying. The continual development of electric vehicle powertrain, battery and charger technologies has further improved electric vehicle technologies for wider uptake. Despite the environmental and economical benefits, electric vehicle charging introduce negative impacts on the existing network operation.
Appropriate charging management strategies can be implemented to cater for this issue. Furthermore, electric vehicle integration in the smart grid can bring many potential opportunities, especially from the perspective of vehicle-to-grid technology and as the solution for the renewable energy intermittency issue.
Auto Manufacturers
Major automakers want half their vehicle sales to be electric by 2030. As the energy transition quickens, global battery supply will meet only 60% of the expected demand by decade’s end, Oslo-based Rystad Energy forecasts. That lends more urgency to the quest for the holy grail — a cheaper, simpler, better battery.
EV buyers are caught between the conflicting priorities of state of technology, drivers for the government and needs of auto manufacturers. A good option is for them to lease EVs to enjoy driving them while not being impacted by the changes in technology as they can return the vehicle at the end of the lease period.
According to Fortune Business Insights, the global car leasing market size is projected to grow from USD 82.01 billion in 2022 to USD 131.10 in 2029, at CAGR of 6.9% during this period.
