The opportunity to glide above congestion in some of the globe’s most prominent cities feels like a long-anticipated glimpse into the future. Now, this futuristic concept is becoming a reality in significant urban areas like Dubai and New York. Recently, the UK’s Department for Transport (DfT) has released its Future of Flight action plan, outlining plans to have the first eVTOL (electric vertical take-off and landing) taxis operational over London within two years. Here’s what to look forward to.
What’s new?
Over 150 tech firms are working on developing these vehicles, with a shared vision emerging that the flying taxis of tomorrow will resemble drones. In the last 15 years, propeller-driven drones have transformed from unstable, crash-prone gadgets into tools capable of delivering packages to remote areas and creating intricate light shows. Innovations in lithium-ion batteries, electric motors, and flight guidance software have been crucial to these advancements.
Utilizing these technologies, Joby Aviation, based in California, is developing eVTOL aircraft. Its flying taxi features six electric motors paired with tilting propellers that enable it to navigate tight spaces and achieve speeds of 200mph. It boasts a range of 100 miles on a single charge, can carry four passengers, and, at least initially, will be piloted. Compared to conventional vehicles, it has a smaller carbon footprint, producing no exhaust emissions, and operates almost silently. Guy Norris, an editor at Aviation Week, has observed a prototype, noting: “The aircraft made only a barely audible sound.”
Where will they launch first?
Similar to the rise of electric vehicles across the globe, innovation is spearheading from China. Last year, drone maker EHang secured approval for its flying taxi from the Civil Aviation Authority of China. The company has since taken orders for 100 of its aircraft intended for sightseeing and shuttle services above Hefei, and is also working on a pilotless version.
In the UK, Vertical Aerospace, headquartered in Bristol, is leading the charge with £37 million in government funding to finalize the development of its five-seat eVTOL flying taxi. This project has successfully passed the design approval stage with the UK’s Civil Aviation Authority (CAA) and aims to begin testing above London by 2026, with potential sites for ‘vertiports’, where flying taxis can take off and land vertically, currently being evaluated.
Within London, “there are companies examining the possibility of utilizing rooftops,” states Will Nathan from Vertical Aerospace. In November 2023, Joby Aviation completed its inaugural test flight of a flying taxi over New York, taking off from Manhattan — potentially reducing the typical one-hour trip to John F. Kennedy International Airport down to seven minutes, according to Joby. The company claims it’s on track to launch the first commercial passenger service next year and has recently entered a six-year exclusive agreement with Dubai’s Road and Transport Authority for a launch in the Emirate by 2026.
What safety protocols will flying taxis implement?
The two primary obstacles they need to conquer are gaining passenger trust and securing full approval from safety authorities like the CAA and the US’s Federal Aviation Authority. A report by aviation safety experts Ebeni from March 2024 states: ‘Li-ion batteries can catch fire, especially after sustaining damage or during high charging rates. Flying at low altitudes and in urban settings increases the chances of bird strikes, so manufacturers must factor in the implications of damage (particularly around batteries and lift thrust mechanisms).’ EHang highlights the inclusion of ‘back-up systems for all critical flight components’ in its flying taxis, ensuring that if one element fails, another can take over.
Will they be reasonably priced?
Initially, it’s probable that they will not be, with production expenses around £1 million per aircraft. Although some eVTOL companies are already advertising low fares, it’s expected that the earliest services will serve a similar market to that of helicopters, likely providing transport for first-class airline passengers between major airports and urban centers — just in a quieter manner with lower emissions. However, similar to the widespread adoption of many rapidly progressing technologies, it’s reasonable to expect that increased supply will eventually allow all of us to summon a flying cab in the future.
When the revolution of electric air taxis arrives, you likely won’t hear them approaching. A striking aspect of electric vertical takeoff and landing (eVTOL) aircraft is their quiet operation, barely audible amid the usual sounds of city traffic. Unlike helicopters, there’s no disruptive, 90-decibel “thwop, thwop, thwop.” Instead, eVTOLs utilize numerous small propellers that rotate at half the speed of a helicopter’s rotor, eliminating the bothersome low-frequency sound pulses created by large spinning blades.
Electric motors, which are quieter compared to helicopter turbine engines, also contribute to reduced noise. “The newest air taxi designs, like those from prominent manufacturers such as Joby and Archer, achieve a 20- to 25-decibel decrease in noise compared to helicopters,” states Mark Moore, the innovative engineer who directed the development of NASA’s X-57 Maxwell electric airplane. This implies that eVTOLs could be four or five times quieter for nearby observers. In addition to providing quieter flights, these advanced machines are expected to be notably safer, more environmentally friendly, and more economical than helicopters. Moore argues that electric air taxis are particularly well-suited for what the aviation industry refers to as urban air mobility (UAM) services, allowing typically congested travelers to “utilize the third dimension to escape the traffic on the ground.”
In the last decade, more than twenty-five significant eVTOL manufacturers have been established, with a few approaching commercial certification from the U.S. Federal Aviation Administration or its European counterpart, the European Union Aviation Safety Agency (EASA). Each organization is developing its own unique aircraft design, but they all share a common objective: to offer on-demand air trips lasting no longer than 18 to 25 miles—the ideal range for the first generation of battery-electric eVTOL taxis. These short, high-speed flights could transport commuters between city centers and airports or handle cargo and package deliveries. Military forces may seek eVTOLs for evacuation of casualties or logistical support. Other possible applications include air ambulances, delivery of donor organs, police transport, scheduled shuttles, ecotourism excursions, and, naturally, personal flying vehicles.
In 2016, Moore, who co-founded Uber Elevate—a division of the ride-sharing company focused on air taxis—along with his colleagues, defined the fundamental business model for this burgeoning industry in a crucial white paper titled “Fast-Forwarding to a Future of On-Demand Urban Air Transportation.” This document energized the emerging UAM sector by affirming that the necessary technology was finally available. “What had once been science fiction” was quickly transitioning into a viable business, Moore remembers. Uber Elevate subsequently brought together potential participants, including new airframe manufacturers, airline companies, automotive manufacturers, transport service providers, and possible investors and operators of new vertiports—airports designed for vertical-lift aircraft.
Substantial funding agreements involving Silicon Valley billionaires and large corporations ensued, with over $1 billion raised in just the first quarter of 2020. However, after a tumultuous time of hype and overexpansion, Uber’s air taxi initiative crashed that same year, forcing the company to sell its Elevate division to Joby Aviation, an electric aircraft firm located in Santa Cruz, California. By that time, though, the electric air taxi sector had formulated a coherent business strategy based on a feasible technology: distributed electric propulsion.
In distributed electric propulsion, multiple small electric propulsors (individual propellers, each powered by its own electric motor) are strategically placed along the wings, tail, or fuselage, where they work together to produce thrust, lift, and control forces. “What’s essential is that they enable innovative rotorcraft designs to comply with noise and emissions standards in urban environments,” explains aviation pioneer John Langford, former CEO of Aurora Flight Sciences, a Virginia-based company that developed several early electric aircraft and eVTOLs, primarily for the Pentagon.
The advantages of this propulsion method extend beyond noise reduction. Numerous propellers provide safety redundancy that traditional helicopters, which typically have only one or two rotors, cannot offer, Moore explains. If one propulsor fails, the others can shoulder the burden. Furthermore, in contrast to helicopter turbine engines that emit fossil fuel exhaust, he notes, “electric motors produce low or zero emissions.”
However, the engineers and designers working on these aircraft couldn’t simply replace turbine engines with electric motors. “Switching to electric power would often result in reduced performance,” Langford observes. “The low energy density of batteries means that electric aircraft excel in short-range missions—usually under 200 miles, and often significantly shorter.” Nevertheless, he adds, the high efficiency and low maintenance requirements of eVTOLs can contribute to lower operational costs, which is a significant appeal for proponents of electric air taxis.
The primary consideration in all designs is to reduce weight to avoid straining the batteries—the most vulnerable component in eVTOL systems—especially during takeoff and hovering phases. A number of current eVTOL aircraft are being optimized to substitute 60- to 90-minute car journeys with 10- to 20-minute air taxi flights at approximately 150 mph. This is why almost all air taxi models utilize lightweight carbon-composite airframes.
Air Taxi Classification
Given the hundreds of different air taxi vehicles being developed globally, it is helpful to categorize them based on their general designs. Tom Muniz, the chief technology officer of Archer Aviation in San Jose, California, is well-positioned to offer such a classification of air taxis. He has extensive experience from several eVTOL projects, including Zee.Aero, Kittyhawk, and Wisk Aero, the last of which is now owned by Boeing.
“The most basic category is the multicopter eVTOL,” Muniz states. “They are similar to conventional drones with multiple lift propellers but lack wings, which limits their range and speed.” Muniz points out that, because wings can create high aerodynamic lift forces quietly, multicopters tend to generate more noise than other formats.
Germany’s Volocopter and China’s EHang are two companies producing small multicopter-type eVTOLs. At the forthcoming Summer Olympics in Paris, Volocopter plans to transport passengers among five newly constructed municipal vertiports using its two-seat VoloCity demonstrator. Meanwhile, the Civil Aviation Administration of China has recently approved EHang for mass production of its pilotless EH216-S eVTOL, which operates autonomously and can carry two passengers.
Following in terms of technical sophistication are the “lift-and-cruise” designs. These aircraft integrate the multicopter format with the traditional fixed-wing airplane structure, allowing for extended ranges and greater speeds. Typically, an array of upward-facing propellers located around the aircraft provides vertical lift during takeoffs. Subsequently, one or more fixed pusher propellers at the rear propel the vehicle forward, transitioning to energy-efficient wing-based lift, Muniz explains. When it’s time to land, the lift propellers resume control.
The CityAirbus NextGen eVTOL prototype from Airbus UAM, a division of the European multinational aerospace firm based in Germany, is a new lift-and-cruise air taxi anticipated to fly in late 2024. It accommodates a pilot and three passengers, boasting a maximum range of 50 miles and a cruising speed of 75 miles per hour. Another lift-and-cruise eVTOL is the recently certified 4,400-pound, five-seat Prosperity from AutoFlight, located in Shanghai. Earlier this year, a prototype completed a 20-minute intercity flight between Shenzhen and Zhuhai— a journey that requires three hours by car.
An interesting competitor among the latest air taxi designs is not an eVTOL but an eSTOL—an electric (or extreme) short takeoff and landing aircraft, which is under development by Electra.aero, a venture of Langford based in Manassas, Virginia. Electra’s two-seat, hybrid-electric eSTOL prototype, the EL-2 Goldfinch, resembles an agile, slow-flying crop-duster aircraft. The Goldfinch has recently demonstrated that it can safely operate from an airstrip less than 170 feet long—significantly shorter than the requirements for a conventional fixed-wing aircraft. (For reference, a fully loaded Cessna 172, a common small plane, typically needs about 960 feet of runway.)
“Goldfinch is equipped with eight electric propellers along the leading edge of the wings that greatly enhance lift by blowing air over the wing, raising the effective airspeed and thereby increasing the aerodynamic lift produced,” explains Langford, adding that this additional lift “facilitates ultrashort, low-speed landings.” Along with large wing flaps that extend similarly to those on airliners, combined with an oversized horizontal tail stabilizer for control, Electra’s “blown-lift” eSTOL prototype is setting the stage for a nine-passenger commercial variant. This larger aircraft, Langford asserts, should be capable of operating from 295-foot-long fields—a configuration that could fit at some of Manhattan’s current riverside heliports.
Joby and Archer
A more intricate form of the lift-and-cruise eVTOL is the “vectored thrust” type, where articulated propulsors can tilt to deliver either vertical or horizontal thrust as required, explains Muniz from Archer. He highlights his company’s Midnight vehicle and Joby Aviation’s S4 2.1 eVTOL as key examples.
Archer’s Midnight, a 6,500-pound vehicle that accommodates a pilot and four passengers, includes a dozen forward-facing electric propellers on the wings and tail. Six tilt propellers offer lift for vertical takeoff and landing, as well as thrust for forward flight, while six fixed lift propellers are engaged only during vertical flight. The company claims this vehicle can achieve speeds of up to 150 mph. Joby’s eVTOL, known as S4 2.1, is a 4,800-pound aircraft that carries a pilot and four passengers, powered by six tilting propulsors. It has a maximum speed of 200 mph.
Both firms have become part of the U.S. Air Force’s AFWERX Agility Prime initiative, which is allocating hundreds of millions of dollars to secure air taxis for assessment and testing by NASA engineers. Last September, Joby provided its initial production prototype eVTOL aircraft to Edwards Air Force Base, according to Didier Papadopoulos, the president of the company’s aircraft OEM (original equipment manufacturer).
Joby’s business model, which relies on Uber’s vast ride-hailing data, posits that air taxis must operate at approximately $3 per passenger mile to achieve profitability. Papadopoulos mentions that Joby aims to run all day with just six- to eight-minute breaks to switch passengers and recharge batteries. Given the strict cost considerations and unique requirements, he notes that the company’s engineers are creating all the aircraft’s components in-house. This vertically integrated supply chain stands in contrast to Archer’s more economical approach, which incorporates numerous off-the-shelf components, as stated by Muniz, with the exception of motors, batteries, and control systems. In addition, while Archer has opted for Tesla-tested “automotive-style” cylindrical lithium-ion batteries, Joby has reportedly chosen a lithium-nickel-cobalt-manganese-oxide battery pack that utilizes lighter and more compact pouch cells.
Moore perceives the two differently sourced vehicles as “a Ferrari versus a Toyota Camry.” Whether either of these vehicles, or any of their various competitors, can achieve broad acceptance from the traveling public is yet to be determined.
Toyota is allocating an additional $500 million towards Joby Aviation to assist the air taxi startup with the certification and commercial production of eVTOL (electric vertical takeoff and landing) aircraft intended for a ride-hailing service. The automaker’s total investment has now reached $894 million since 2018.
This funding from Toyota will be distributed in two installments of $250 million each, with the first one happening this year and the second scheduled for 2025. Additionally, the automaker will form a manufacturing partnership with Joby for the initial phase of commercialization. In 2023, both companies established an agreement that allows Toyota to produce powertrain components for Joby’s air taxi.
Founded in 2009 by JoeBen Bevirt, Joby Aviation is based in California. The company remained low profile until attracting significant attention with a $100 million investment round in 2018, which involved contributions from Intel, Toyota, and JetBlue.
These funds enabled Joby to design a prototype and carry out test flights at a private airfield located in Northern California. Impressed by the progress, Toyota dispatched its engineers to collaborate closely with Joby Aviation.
Joby’s fully electric aircraft features six rotors and accommodates five passengers, including the pilot. The vehicle is capable of vertical takeoff like a helicopter and can transition to forward flight using tilt rotors. According to Joby, it can achieve a maximum speed of 200 mph, cover 150 miles on a single battery charge, and is significantly quieter—up to 100 times—than traditional aircraft.
Recently, the company showcased a few flights over Manhattan and intends to begin commercial passenger services in metropolitan areas such as New York City and Los Angeles by 2025.
At the high-profile Manhattan event, executives from Joby, Uber, and Delta Airlines were present, representing each company’s significant stake in the public venture, which listed on the New York Stock Exchange three years ago. Their core message is clear: Electric taxis are no longer a far-off dream; they are swiftly becoming a reality. Witness it for yourself…
The aircraft, adorned with six bullet-shaped propellers that grace its sleek black-and-white design, looked as if it could lift anything from King Kong to the elegantly constructed vehicle itself. Although it appears light and compact, the empty aircraft weighs around 4,800 pounds, reminiscent of entering a helicopter’s interior.
This comparison makes sense; it can also take off vertically like a helicopter, then transition into forward flight using tilt rotors, powered by four packs of lithium-ion pouch cells. Joby chose not to reveal the identity of its battery supplier, but stated, “they’re cells that are in use in the automotive supply chain today.” (Japanese automaker Toyota stands as Joby Aviation’s largest outside investor.)
Joby asserts that the aircraft can “reach a top speed of 200 mph, travel 150 miles on a single battery charge, and is 100 times quieter than a conventional aircraft.” In contrast, the Alia, created by Beta Technologies, can cover around 288 miles on one charge. It too is an eVTOL aircraft, but is mainly intended for cargo and medical transport, with partnerships established with UPS and United Therapeutics—whereas Joby Aviation focuses on “electric aerial ride-sharing.”
Both firms credibly claim significant sound reduction is achieved. This feature is critical for gaining public acceptance and for urban integration, adhering to regulatory requirements and scaling into a future transportation framework.
“There’s a common misunderstanding that electric means quiet, which is not necessarily accurate,” explains Eric Allison, Chief Product Officer. “The primary noise is generated by the propellers. Therefore, we have explored numerous iterations of blade design. Modifications to blade shape, spin speed, and the number of blades—all these factors influence the noise profile that we achieve. It’s fundamentally a design solution.”
The anticipation that eVTOLs would penetrate the aerial ride-sharing sector has been echoed by major players in both the aerospace and tech fields. A Morgan Stanley report from 2019 suggested that the urban air mobility (UAM) market, incorporating eVTOLs for ride-sharing, could surpass $1 trillion in valuation by 2040.
This week’s Grand Central event materializes this vision. Joby is collaborating with Delta Airlines and Uber, a participant since 2020, to offer an ‘air taxi’ service in New York City, claiming they can ferry passengers from Manhattan to JFK in just seven minutes. According to a company statement, the plan is to “integrate their respective services into each other’s apps, facilitating seamless connections between ground and air travel.” Effectively, this means passengers could use Uber to get to the vertiport, fly Joby to the airport, and then take a Delta flight to their final destination.
What would the price of such a ride be? “Our pricing has not been finalized yet, but we aim to align it closely with Uber Black rates,” remarked Andy Brehm, who heads business development for Joby in New York. A trip from JFK airport to Manhattan using Uber Black generally falls within the $142 to $170 range.
Currently, the Federal Aviation Administration (FAA) has not fully permitted eVTOLs for extensive commercial use. Nevertheless, advancements are being made. Joby Aviation and Beta Technologies are collaborating closely with the FAA to secure type certification (approval of the aircraft’s design).
“We’re collaborating with the FAA to ensure the vehicle design is certified and safe. We’re also coordinating with them on pilot licensing and commercial operations to prepare both the infrastructure and airspace,” stated Greg Bowles, Head of Government Affairs for Joby Aviation. “We anticipate that very soon, you’ll hear about something referred to as SFAR, a Special Federal Aviation Regulation that will include all the necessary provisions for commercial operations and pilot training.”
Vertical Aerospace, located in Bristol, receives a £39m financial boost
A firm developing a new electric aircraft has announced a significant new investment that secures its future.
Based in Bristol, Vertical Aerospace is testing a so-called electric flying taxi that can transport four passengers up to 100 miles (161km). The company has faced financial challenges but has secured a $50m (£39m) investment from American investor Mudrick Capital.
Stuart Simpson, CEO of Vertical, described it as a “really exciting, pivotal day for the company.” Vertical joins many other global firms striving to create an all-electric vertical take-off aircraft, or eVTOL.
Their objective is to develop an aircraft that is as convenient as a helicopter, yet more affordable to operate and does not emit carbon, thus not contributing to climate change. Vertical was established in 2016 by British entrepreneur Stephen Fitzpatrick, who also founded the energy company Ovo.
Mr. Fitzpatrick asserts that the company’s VX4 aircraft will be “100 times safer and quieter” than a helicopter, at one-fifth of the cost. Earlier this month, the firm’s engineers achieved a new milestone at Cotswold Airport in Gloucestershire.
For the first time, they operated the aircraft “untethered” – without a safety line connecting it to the ground. This signifies the next stage of their testing program, supervised by the Civil Aviation Authority.
Mr. Simpson remarked, “We are one of only two flying taxi companies with a tilt-rotor to have accomplished this globally, and we’re conducting this in the southwest of England. It’s an extraordinary milestone.”
Providing flights without carbon emissions is considered a ‘holy grail’ for the aerospace sector. Airbus, GKN, and other major aircraft manufacturers are exploring hydrogen-powered planes. A different small startup is evaluating hydrogen fuel cells on small propeller-driven aircraft.
The development of vertical take-off aircraft necessitates highly sophisticated engineering. Eight small rotors mounted on tiny wings first lift the vehicle off the ground, similar to a helicopter. They then tilt to propel the aircraft forward, delivering greater stability while also posing more engineering challenges.
Securing financing is often more challenging than the physics involved. Convincing investors to invest substantially enough to sustain the company through lengthy testing and regulatory periods has been tough. Many companies have already gone under.
Mr. Simpson believes that the $50m (£39) investment from Jason Mudrick will keep Vertical operational until the end of 2025.
Vertical had accumulated £260m in debt, and the new agreement results in half of that debt being converted into equity, which will be owned by distressed debt investor Mudrick Capital.
As a result, Jason Mudrick will now own 70% of Vertical’s shares, replacing founder Stephen Fitzpatrick, who retains 20%.
Mr. Fitzpatrick will continue to serve on the board, offering “strategic direction.”
Mudrick Capital has been involved for three years, and both sides have dismissed rumors of a takeover.
Mr. Mudrick expressed, “This agreement highlights our recognition of Vertical Aerospace’s standing in the eVTOL sector and a team that has showcased its capability to deliver innovative solutions for the future of sustainable aviation.”
Mr. Fitzpatrick stated, “The extra equity and enhanced balance sheet will enable us to finance the next phase of our development program and fulfill our goal of bringing this remarkable electric aircraft to the skies.”
The company has already sold the first 1500 aircraft to top aerospace firms and aims to achieve full CAA certification by 2028, granting its aircraft the authorization to fly.
Government wants flying taxis to take off in 2 years
The initial flying taxi could launch in the UK by 2026 and may become a common sight in the skies by 2028, provided a government announcement is successfully implemented.
The Future of Flight action plan, created in collaboration with the aerospace sector, also indicates that drones and other aerial vehicles will become more self-sufficient.
It anticipates that the first unmanned flying taxi will make its debut in 2030.
However, specialists indicate that challenges like infrastructure and public acceptance must be addressed first.
There are various models available, but most flying taxis resemble advanced helicopters and typically accommodate around five passengers.
They belong to a category of vehicles referred to as “eVTOLs” – which stands for electric vertical takeoff and landing aircraft.
The technology for these vehicles is already in existence, but it is expected that they will initially serve as luxury transport options—replacing costly helicopter rides.
The Department for Transport also intends to permit drones to operate beyond the visual line of sight, meaning the operator cannot see the drone while it’s flying.
Uses for unmanned drones include delivering medical supplies, transporting mail in remote areas, and pursuing fugitives.
While still in the early phases, the plan suggests drone deliveries would become routine by 2027.
According to Craig Roberts, head of drones at consultancy firm PwC, the main barriers to introducing flying taxis are infrastructure and public perception.
Last year, he collaborated with the government on a report assessing the viability of this technology.
“It’s challenging, but achievable,” he remarks regarding the 2026 target.
Roberts believes that the most effective application of this technology would be in “longer distance, higher occupancy scenarios.”
The government’s report provides an example of traveling from Liverpool to Leeds in just 26 minutes.
“It might initially serve as a substitute for helicopters,” he states, as demand gradually extends to a broader audience.
The general public would also need to see the convenience of this technology demonstrated through advancements in security processes.
The PwC report envisions a scenario where it takes 10 minutes from arriving at a flying taxi area to taking off—currently a formidable challenge due to airport security delays.
“The industry recognizes this challenge and understands it must be addressed… But there are technological solutions available,” Roberts explains.
“What had been inhibiting progress for a long time were the certification barriers associated with new technology,” remarks Dr. Nadjim Horri, a lecturer in aerospace control at the University of Leicester.
Yet, he notes that this is evolving, with regulations beginning to align with advancements in the field.
He emphasizes that gaining public trust in adopting the new technology is also essential, but believes that 2026 is a plausible target for introducing flying taxis.
What locations would these vehicles use for takeoff and landing?
These proposals would necessitate new infrastructure developments in the UK, such as “mini airports” designated for drones.
A mini airport was established for four weeks in a parking lot near central Coventry in 2022 as a proof of concept.
The company behind it, Urban Air Port, envisions air taxis as an addition to, rather than a replacement for, existing transportation methods.
Its CEO, Andrea Wu, asserts that transport hubs should be located in urban areas, but “there has not been sufficient investment in infrastructure” in the UK up to this point.
She considers the idea of flying taxis becoming a frequent sight by 2028 to be an “ambitious timeline” given the requirement to develop suitable takeoff and landing locations.
“However, the entire industry agrees that we must document plans in order to drive this forward,” Wu states regarding Monday’s announcement.
Since the demonstration two years ago, no additional mini airports have been constructed or tested. However, according to the government plan, the first vertiport (airport for vertical takeoff vehicles) will become operational this year.
The UK’s aerospace regulator, the Civil Aviation Authority, is evaluating proposals for vertiports at current aerodromes.
New regulations will almost certainly need to be established if the government aims to have autonomous air taxis operational by 2030.
The luxury automobile manufacturer Jaguar has introduced its latest electric concept vehicle, which has sparked mixed reactions, similar to a recent contentious teaser video.
Some individuals on social media described the new Type 00 model as “exciting” and “absolutely stunning,” while others dismissed it as “rubbish” and urged Jaguar’s designers to “return to the drawing board.”
Nonetheless, the automaker has indicated that the mixed response aligns with its intentions as it aims to revitalize its brand in order to boost sluggish sales.
“Jaguar must be bold and disruptive to penetrate the market and communicate our message effectively,” stated CEO Rawdon Glover in an interview with the BBC.
He emphasized that his aspiration is to re-establish Jaguar’s reputation as a luxury brand, stepping away from the strategy of producing large numbers of vehicles.
Historically, Jaguar has been the weakest segment within the Jaguar Land Rover (JLR) group, which is also responsible for manufacturing Range Rovers and Land Rover Defenders.
Since 2018, sales have plummeted from 180,000 to only 67,000 in the previous year.
Last month, JLR ceased the sale of new Jaguars in the UK entirely, in anticipation of its transition to an electric-only brand by 2026.
The company also revealed a new logo, alongside what has been labeled a “social media tease,” showcasing models dressed in bright colors without presenting any actual cars.
Many criticized the advertisement as “woke,” with Elon Musk, the CEO of rival Tesla, questioning, “Do you sell cars?”
Critics also lamented the modification of Jaguar’s iconic growling cat emblem, which has been altered and is no longer located on the car’s front.
Mr. Glover has defended this initiative, asserting that the discussion has attracted “more eyeballs” to the firm leading up to the unveiling of the new concept car this week.
“In that context… the strategy was successful,” he remarked.
“We certainly do not want to alienate any segment of our customer base… But, most importantly, our primary goal is to draw in a new audience to Jaguar’s brand to ensure we secure Jaguar’s future for the next 90 years.”
JLR announced its shift to electric vehicles in 2021, committing to keep all three of its British manufacturing plants operational as part of this strategy.
It stated that the decision to halt new Jaguar sales in the UK last month was a calculated move to “create some breathing space” before introducing its refreshed image.
The Type 00 model revealed at a Miami art fair is a concept and, therefore, will not go into mass production for public sale.
Instead, the model, characterized by its ultra-long bonnet and large wheels, offers insight into the brand’s future vehicle designs.
Mr. Glover noted that Jaguar has “ripped up the rulebook” with its new design, which is also meant to evoke the brand’s golden era.
The rebranding comes with a higher cost, as Jaguar aims to cater to the luxury market.
“Nobody requires a vehicle priced at £120,000; it’s a matter of desire,” he remarked.
“Overall, this car embodies a sense of true occasion, which we believe is somewhat lacking in the luxury electric vehicle sector,” he added.
Yet, many social media users were unimpressed by the preview.
James May, a broadcaster and former Top Gear presenter, expressed feeling “slightly disappointed” with the design and its price point.
“I expected something more futuristic,” he told the BBC. “Jaguar has claimed they will copy nothing, but there are elements of other concept cars in this new Jaguar.”
May mentioned that Jaguar vehicles have historically been “quite reasonably priced compared to, for instance, Aston Martin.”
“Therefore, I would prefer to see something priced closer to half of what they are currently proposing.”
‘Too big’
Beatrix Keim, director of the Center for Automotive Research, criticized Jaguar’s concept car as being “too large, too unrealistic.”
“This is not the right direction to take,” she said, considering that there are already sizeable vehicles available and “electric cars shouldn’t solely target the affluent.”
“Certainly, Jaguar is a luxury brand,” she added. “However, I don’t believe this is the path Jaguar needs to be on at this time, as it is also losing volume. This is not a high-volume vehicle.”
Amanda Stretton, a racing driver and automotive journalist, concurred that she felt Jaguar was heading in the “wrong direction” regarding pricing.
“The market for cars exceeding £100,000 is limited, so Jaguar is entering a market that is already highly competitive,” she said, adding that the new vehicle’s size seemed to be “utterly impractical.”
“It ought to be reduced in size by about 50% to become more functional.”
Jeff Dodds
Previously the marketing director at Honda, now serving as the chief executive of Formula E, where Jaguar competes. I’ve recently had a Jaguar iPace; it’s a great car, but it didn’t bring me joy. That’s what I seek in a vehicle, and Jaguar understands this too. Inspector Morse might not be interested, but if his grandson had just launched a cybersecurity startup, he might be.
Jaguar certainly caught attention with the launch, which was their intention. There was a genuine sense of excitement leading up to the reveal, and some guests were eagerly hoping to see an outrageous disaster. Instead, what emerged was anything but hideous; it’s incredibly distinctive. It’s noticeably larger, more daring, and more unconventional than I expected. It will certainly grab attention. While not everyone may appreciate it, I’m grateful for that.
The event itself is also radically different: it has an industrial and edgy vibe. The British grime artist and rapper Skepta wouldn’t typically fit the role of a Jaguar brand ambassador, yet he performed a DJ set among influencers and cultural icons in downtown Miami. This is a significant shift from previous events. Is it too much of a change? Perhaps. Jaguar was at risk of being relegated to past discussions, so I commend them for this move. If I owned a Type 00, I believe it would bring me joy.
Ginny Buckley
Founder of the UK EV-buying platform Electrifying.com
In Jaguar’s nine-decade history, nothing has generated as much global discourse as its controversial rebranding. However, the new logo and extravagant advertisement may soon be overshadowed by the dramatic unveiling of the Type 00.
I first encountered the car during a briefing at Jaguar Land Rover’s design studio in the Midlands, and in my more than 25 years as an automotive journalist, no vehicle has left me as awestruck as this £100,000+ all-electric grand tourer.
Indeed, it’s pink—very pink. Shown in Miami Pink and London Blue, the colors reflect the city that showcased its global reveal and Jaguar’s British roots.
In over 25 years as a motoring journalist, no vehicle has astonished me as much as this all-electric GT priced over £100,000.
The color is bound to be a focal point for many critics. I was informed by Jaguar’s design team that it’s a “production-ready” hue, which could create controversy among traditional Jaguar enthusiasts if it ends up in the final color selection.
Beyond the color, the design of the Type 00 is striking, boasting an elongated hood, a substantial monolithic grille, and front-hinged butterfly doors, while Jaguar has also eliminated the rear window.
I believe the Type 00 presents a fresh and bold appearance. My 15-year-old describes it as “peak”—which I take as a compliment.
Gerry McGovern, Jaguar’s chief creative officer, remarked, “It will make people feel uncomfortable, and it will polarize.” Of course, it will. However, if the goal was to generate conversation, they’ve certainly succeeded.
The challenge lies in whether Jaguar can swiftly transform its brand to capture the new wave of affluent young buyers it hopes will want this vehicle.
Manfredi Ricca
Global chief strategy officer at the branding consultancy Interbrand, who has worked with Bugatti and contributed to the relaunch of Mini and BMW
Let’s rewind to two weeks ago. There was little interest in Jaguar. Then out of nowhere, a 30-second video is released, and millions instantly take notice. Within just 24 hours, Jaguar becomes part of the worldwide dialogue, even without showcasing a product.
As a consequence, the anticipation for the new lineup reaches levels akin to that of a World Cup final in terms of reach and intensity—including a leak the night before the launch.
Jaguar Land Rover wasn’t aiming to evolve a thriving brand; it was about reinventing an ailing one. You can hardly ask for more from a campaign, especially one intended to rejuvenate a brand. What many commentators miss is that Jaguar Land Rover wasn’t just trying to evolve a prosperous brand but was focused on reinventing one that was struggling.
Currently, more people celebrate Jaguar’s rich history than those who actually desire its cars.
Museums may thrive solely on nostalgia, but commercial enterprises cannot—they need to transform their heritage into something that a sufficient number of customers are willing to pay for.
Jaguar, once renowned for its innovation in crafting some of the most unique vehicles globally, is seeking affection from a select few instead of being overlooked by the majority.
The concept revealed in Miami is likely to entice them—but the real test will be converting them into fans by 2025 and customers by 2026, when the cars are expected to enter the market.
Richard Exon
Co-founder of the advertising agency Joint, with prior experience working with Audi and Range Rover
Jaguar deserves recognition for its ambitious rebranding efforts. A complete departure from its past may be its best option. It aims to market its brand-new lineup to a completely different audience, so striving to become a more modern, inclusive, and provocative brand could potentially yield successful results.
However, intent alone isn’t enough if the execution is as lackluster as the derivative and disappointing video content Jaguar released prior to the launch.
Fortunately, the concept car images showcase a striking new aesthetic.
The Type 00 marks a pivotal moment in Jaguar’s 90-year legacy, representing a daring and unapologetically bold approach aimed at redefining Jaguar as a modern luxury brand suited for the 21st century, capable of profiting from selling far fewer vehicles at significantly higher price points. “It serves as our first tangible embodiment and the cornerstone for a new lineup of Jaguars that will appear unlike anything you’ve encountered before,” remarks Gerry McGovern, JLR’s chief creative officer.
The Type 00, with its exaggerated dimensions, boldly disregards Jaguar’s conventional design language. It lacks the usual Jaguar features, such as flowing curves or feline dynamism; instead, it showcases solid surfaces accented by a few sharp lines stretched tightly over large wheels and abruptly terminated by straight-edged front and rear sections. “The Type 00 demands attention, akin to the finest Jaguars of history,” states chief exterior designer Tino Segui. This is accurate, yet few may perceive it as a natural successor to the stunning E-Type that captivated audiences at the 1961 Geneva Motor Show.
The Type 00 boasts a plethora of captivating concept car details, including butterfly doors, rearview cameras concealed under pivoting brass panels along the sides, and a windowless rear hatch that operates on a pantograph mechanism. The cabin is adorned with woven textile accents and highlights of brass and travertine stone, featuring screens that emerge from the dashboard. Brass, travertine, and alabaster totems are stored within a compartment behind a powered door on the front fender, utilized to adjust the interior atmosphere by altering ambient lighting, soundscapes, and screen visuals.
Beneath its striking appearance, the foundational shape and proportions of the Type 00, along with its robust stance and elements like the textured parallel line graphics at both the front and rear (where the tail and brake lights are cleverly concealed in the upper and lower lines), hint at what is to come when Jaguar’s first all-new electric vehicle, a sleek four-door GT, debuts in 2026. “The initial production model was deliberately selected because it exemplifies the Type 00 at its purest,” confirms Jaguar managing director Rawdon Glover.
Anticipate that the upcoming GT, which will utilize the new Jaguar Electric Architecture (JEA) platform, might not feature an interior as extravagant as that of the Type 00. However, the Type 00’s innovative use of materials and colors, along with technologies like deployable displays and indirect ambient lighting, suggest that the next generation of electric Jaguars will offer far more opulent interiors compared to the outgoing internal combustion models. This is essential: Rawdon Glover indicates that the least expensive of the upcoming Jaguar EVs will start at over $120,000.
While Jaguar has unveiled images of a camouflaged GT prototype being tested in the UK, no technical specifics have been disclosed apart from an EPA-rated range of up to 430 miles and an electrical system designed to achieve 200 miles of range in just 15 minutes when using a fast charger. The GT is anticipated to be an all-wheel-drive model powered by two electric motors, featuring multi-link suspension both front and rear. This range estimate implies it will incorporate a battery pack of no less than 100 kWh.
The JEA platform has been custom-engineered to accommodate the battery beneath a low floor, enhancing handling and enabling the striking proportions hinted at by the Type 00. The second vehicle to emerge from this platform is expected to be a two-box high-performance SUV, though Jaguar insiders suggest it will have a sleeker roofline than competitors such as the Aston Martin DBX707, Ferrari Purosangue, and Lamborghini Urus. The third Jaguar utilizing the JEA platform is likely to take the form of a two-door sports car available in both coupe and convertible styles.
Gerry McGovern asserts that the Jaguar Type 00 is not designed to “seek affection from all.” He is correct: The Type 00 elicits strong reactions. However, it’s also the most forward-thinking Jaguar in half a century; the first model since the XJS to challenge conventional notions of Jaguar’s design. The Type 00 and the strategy behind it represent a significant risk. But JLR stands to gain little from the status quo. Although purists may object, reality dictates that too few individuals appreciated the former Jaguar models enough to ensure profitability. A fresh perspective on what Jaguar could be, and should be, was essential. Whether you admire it or detest it, this is its visage.
Ford’s UK leader is urging the government to introduce consumer incentives of up to £5,000 per vehicle to increase the appeal of electric cars and assist the industry in achieving ambitious climate goals.
Lisa Brankin, chair of Ford UK & Ireland, stated to Sky News that offering direct support for consumers purchasing zero-emission vehicles is vital for the industry to remain economically sustainable and meet demanding net-zero targets.
Last week, under pressure from the industry, the government initiated a “fast-track” review of its Zero Emission Mandate (ZEV), which establishes requirements for the percentage of new vehicles that must be electric—22% for cars and 10% for vans this year.
Manufacturers assert that these targets are unrealistic and that a penalty of £15,000 for each non-compliant vehicle is excessively punitive. Vauxhall’s parent company, Stellantis, pointed to the ZEV as a reason for the recent announcement regarding the closure of its Luton plant.
During the launch of the Puma Gen-E, the electric version of its popular small SUV, at Ford’s Halewood facility in Merseyside, Ms. Brankin remarked that consumer interest has significantly lagged behind what was anticipated when the mandate was introduced.
“The mandate represents a very aggressive path to 2030 and the elimination of new petrol and diesel vehicles. To see a return on our investments as manufacturers—we have invested £380m here [at Halewood] and £2bn in Cologne—we need to sell electric vehicles. The challenge is that consumers are not transitioning as swiftly as we hoped.
“Our primary request is for direct customer incentives, possibly a scrappage program; we have suggested reducing VAT on electric vehicles. We need something to motivate customers to purchase EVs and stimulate the car and van sales that are crucial for the UK.”
When asked if the incentives would need to be in the range of £2,000-£5,000 to be effective, she said, “That’s a valid inquiry, but it would have to be in that ballpark. It must be significant.”
The Puma Gen-E is important for Ford as it is the company’s smallest and most affordable electric vehicle, starting at just under £30,000, making it more accessible to the mass market compared to its current lineup.
The Halewood facility has recently commenced production of the Gen-E power unit, which is utilized in both the Puma and the E-Transit Custom, the electric variant of Ford’s 60-year-old commercial vehicle. They claim it will now power the best-selling car and van in Britain.
This development occurs as the entire European automotive sector faces hurdles in transitioning away from internal combustion engines, including waning consumer interest, tough competition from China, and the looming threat of tariffs from a potential second Trump administration.
Ms. Brankin defended Ford’s shift towards electric vehicles, a transition that has not yet managed to regain its previous supremacy in the UK market for petrol and diesel cars.
She also pointed out that the government’s support for its plants in Dagenham, Essex, and Halewood pales in comparison to the company’s investments.
“The assistance we have received from the government is still considerably less than what we have invested in our business to facilitate the EV transition. For our business to be sustainable, it is essential that it becomes profitable going forward, allowing us to safeguard the jobs we have already created.
“We have an excellent range of electric vehicles; we just are not witnessing customers making the switch as quickly as we would prefer.”
On Tuesday, Stellantis, the owner of Vauxhall, announced the closure of a plant in Luton, jeopardizing 1,100 jobs, partially due to the EV targets.
Business Secretary Jonathan Reynolds commented in the House of Commons on Wednesday that Stellantis’s decision marked “a dark day for Luton.”
It follows Ford in reducing its workforce in the UK; last week, the company revealed plans to cut 800 jobs over the next three years, also partly due to the EV target alongside increased competition.
Ms. Brankin conveyed on BBC Radio 4’s Today program: “What we fundamentally need is government-backed incentives to urgently enhance the adoption of electric vehicles.”
She mentioned that Ford had invested “significantly” in the development and production of EVs, having allocated “well over” £350m to electrification efforts in the UK.
“So we must make it viable,” she stated.
Both companies have previously expressed uncertainty about their futures in the UK due to factors unrelated to EV targets.
Ford shuttered its Bridgend factory in 2020, eliminating 1,644 jobs, citing Covid-19 among the reasons, while Vauxhall’s former parent had indicated in 2019 that Brexit posed a threat to its Luton facility.
Additionally, some analysts have suggested that a shift toward luxury vehicles and away from more affordable options contribute to Ford’s difficulties.
Reynolds attributed the closure of Stellantis’s Luton plant to the past administration, asserting that Labour had “inherited a position of extreme frustration.”
He mentioned that there would be a “fast track” consultation regarding the enforcement of EV targets but reiterated Labour’s commitment to phasing out new petrol and diesel vehicle sales by 2030.
Shadow business secretary Andrew Griffith described the 2030 target as a “jobs killer,” stating that Stellantis’ decision was a direct consequence of government policy that is fundamentally unworkable for the industry.
The former Conservative government shifted the phasing out deadline from 2030 to 2035, while still imposing penalties for non-compliance.
Under the existing mandate, a certain percentage of the cars sold by companies must be classified as zero-emission.
This year, electric vehicles must represent 22% of a company’s car sales and 10% of its van sales.
Firms face a fine of £15,000 for each car sold outside of these requirements.
This target is poised to increase to 28% for cars and 16% for vans by 2025, with the regulations becoming stricter each year leading up to a full ban on new petrol and diesel car sales.
Labour has expressed its commitment to reinstate the 2030 target as part of its broader climate change agenda but will consult on the policy’s “direction of travel.”
There are allowances within the current system that permit manufacturers unable to meet the targets to purchase “credits” from those who can.
In practice, this means companies could acquire credits from manufacturers like Tesla or the Chinese firm BYD, which exclusively produce electric vehicles.
Manufacturers contend that the anticipated demand for electric cars has not materialized as expected when the regulations were conceived.
Consequently, to avoid penalties, they argue they must heavily discount new vehicles or subsidize competitors that only offer electric models, none of which have production facilities in the UK.
Electric vehicle sales have been on the rise, with one in every five cars registered in October being an electric model. However, industry insiders maintain that this trend is largely due to unsustainable discounting.
Reynolds expressed his “profound concerns” about the current operation of zero-emissions policies during a dinner organized by the Society of Motor Manufacturers & Traders (SMMT) on Tuesday.
“I don’t think the policies we’ve inherited, particularly regarding zero-emission vehicles, are functioning as anyone intended,” he stated.
He and Transport Secretary Louise Haigh met last week with car manufacturers to discuss the electric vehicle regulations.
Several possibilities have been proposed, such as enabling the transfer of sales credits between cars and vans and providing “credits” for British-made electric vehicles sold internationally.
The SMMT has urged immediate government action to protect the sector, warning that weak electric car demand and the need to meet sales quotas could severely impact business sustainability and employment.
Nissan, which manufactures electric vehicles at its Sunderland facility, has claimed that the current regulations are “undermining the business case for manufacturing cars in the UK, threatening thousands of jobs, and jeopardizing billions of pounds in investment.”
The government is encountering backlash from automobile manufacturers, who argue that the existing rules aimed at encouraging electric vehicle adoption are excessively stringent.
They indicate that consumer interest in electric cars has not met expectations, which has made it challenging for them to sell sufficient vehicles.
Ford stated that this issue played a role in its recent decision to eliminate 800 jobs in the UK.
Stellantis, the owner of Vauxhall, plans to shut down its van production facility in Luton, citing the new regulations as one contributing factor.
So, what measures could be taken to boost consumer purchases of electric vehicles?
1. Provide subsidies for costs.
Electric vehicles (EVs) tend to be pricier than their petrol or diesel counterparts, partly because they still represent a relatively small share of vehicle production, meaning economies of scale have not fully realized.
The government currently offers some financial assistance to reduce the cost of EVs. For instance, they are subject to a reduced rate of company car tax. Salary sacrifice schemes allow employees to lease cars at a lower cost through their employers, using untaxed income, which can lead to significant savings.
However, since the discontinuation of the plug-in grant for vehicles in 2022, there has not been a comparable incentive for individuals who cannot obtain a car through their employer. Industry experts believe this situation needs to change.
Automotive journalist Quentin Willson, who now leads the campaign group FairCharge, suggests that the government should explore “interest-free loans for used electric vehicles aimed at lower-income drivers and reduce VAT on new vehicles by half.” He believes this could be financed by lifting the current freeze on fuel duty.
2. Produce more affordable electric cars.
The cost of electric vehicles is decreasing, aided by reductions in battery pack prices. Despite significant fluctuations in the prices of metals used in their production, such as lithium and cobalt, battery pack costs have dropped by about 70% since 2015.
This decline has helped narrow the price disparity between electric and traditional vehicles. Earlier this year, Stellantis launched the electric version of its Frontera model at the same price point as the petrol hybrid model.
Finding an affordable electric car is not easy, as there is a lack of genuinely budget-friendly options available.
This is mainly because many manufacturers have chosen to focus on higher-end models that are likely to be more profitable. As Roger Atkins, the founder of Electric Vehicles Outlook consultancy, points out, “vehicles priced between £50,000 and £60,000 are not accessible to everyone”.
Nonetheless, change is on the horizon. The Dacia Spring was launched in the UK a few weeks ago, with a starting price of £14,995. The newly introduced Leapmotor T03 is only marginally more expensive, and the Chinese company BYD has announced plans to introduce its ultra-budget Seagull model to the UK next year.
3. Eliminate the confusion
The government has announced a ban on the sale of new petrol and diesel vehicles by 2030 – but will this really happen?
The original timeline for phasing out conventional vehicles was set for 2040 under Theresa May’s administration, but this was moved up to 2030 during Boris Johnson’s tenure and later postponed to 2035 under Rishi Sunak.
Industry insiders suggest that the shifting timeline has created mixed messages and confused consumers, leading many to postpone purchasing an electric vehicle until there is more clarity.
Melanie Shufflebotham, co-founder of the electric charging guide Zapmap, notes that numerous drivers are “uncertain about the timelines, worried about expenses, and have questions regarding charging.” She advocates for “a consistent, factual communication strategy” backed by the government.
4. Reduce VAT on public charging stations
Although the cost of using public charging stations can vary significantly based on the provider and the speed of charging, public chargers are generally pricier than charging at home.
This discrepancy is partly due to taxation. An electric vehicle owner charging at home will incur a VAT rate of 5% on the electricity they use, whereas they will face a 20% VAT rate when using public chargers. Those without the option of charging at home have no choice but to pay the higher rate.
The industry, EV supporters, and even a House of Lords committee have urged for the public charging rate to be lowered to 5%.
Consultant Roger Atkins describes the current policy as “divisive,” as it “benefits wealthier individuals who can charge their vehicles at home.”
5. Improve the public charging infrastructure
Surveys of potential electric car buyers consistently show that worries about charging infrastructure rank highly. People are concerned about whether they can locate a charger at a busy service station or in rural locations.
While the number of charging points is increasing, as of October this year, there were 71,459 charging points across the UK, located at 36,060 sites, reflecting a 38% rise from the previous year, according to ZapMap.
However, not everyone is satisfied. Reports from current owners about difficulties finding charging points, waiting in long lines, or arriving only to find the charger out of order are common.
As the number of electric vehicles on the road rises, a significantly larger number of charging points will be necessary. The government aims to have 300,000 chargers in place by 2030, but the current pace of growth is insufficient to meet this goal.
Local authorities are partly to blame, as they are responsible for approving planning applications for new rapid charging stations. According to Roger Atkins, the approval process simply takes too long.
Simon Smith from the charging company Instavolt agrees that bureaucratic hurdles are an issue. He believes that obstacles in securing grid connections for rapid charging stations pose a “critical barrier” to expanding the network.
“We require increased assistance to tackle planning delays, local council objections, and challenges related to grid connectivity,” he states.
Ford’s passenger vehicle lineup in the EU will be all electric by 2030
Ford is making a major advancement in its transformation in Europe by committing fully to its electric passenger vehicles and significantly expanding its electrified commercial vehicle offerings.
By mid-2026, Ford has pledged that all passenger vehicles in Europe will be capable of zero emissions, including all-electric or plug-in hybrid options, with a complete shift to all-electric by 2030. Likewise, Ford’s entire range of commercial vehicles will also be zero-emissions capable, featuring all-electric or plug-in hybrid options by 2024, aiming for two-thirds of its commercial vehicle sales to be all-electric or plug-in hybrid by 2030.
This announcement follows Ford’s report of returning to profitability in Europe during the fourth quarter of 2020 and its announcement of at least $22 billion in global investments for electrification through 2025, nearly doubling the company’s prior plans for EV investments.
Stuart Rowley, president of Ford of Europe, stated, “We have successfully restructured Ford of Europe and achieved profitability in the fourth quarter of 2020. We are now moving towards an all-electric future in Europe with innovative new vehicles and a superior connected customer experience.” He added that they anticipate maintaining strong momentum in Europe this year and staying on track to achieve a six percent EBIT margin as part of Ford’s initiative to revive its global automotive operations.
Central to Ford’s transformation in Europe over the past two years involved a $1 billion enhancement of structural costs, addressing weak-performing markets, creating a more focused vehicle lineup across three customer-centric business groups, and forming partnerships aimed at fostering growth and improving profitability across the company.
Ford led the commercial vehicle sales market in Europe for the sixth consecutive year in 2020. The expansion of Ford’s commercial vehicle division is vital for its profitability in Europe, bolstered by new products and services, collaboration with a wide network of commercial vehicle converter partners, and synergies from Ford’s strategic relationship with Volkswagen as well as its joint venture with Ford Otosan, facilitating cost-effective vehicle development and sourcing.
Further growth in the commercial vehicle segment will be supported by an ecosystem centered around connected services co-created with customers, aimed at enhancing their experiences and helping their businesses flourish. This includes services such as FordPass Pro for fleets of up to five vehicles and the establishment of Ford Fleet Management, developed in partnership with ALD Automotive last year to optimize productivity for fleet customers looking for tailored services to ensure their vehicles remain operational.
Recently, Ford and Google announced a new collaborative initiative, labeled Team Upshift, aimed at driving innovative, data-driven opportunities. This unique collaboration, coupled with Ford’s in-house capabilities, will reshape ownership experiences and services for both the passenger and commercial vehicle customers.
Leading the way in Ford’s shift towards electric vehicles is a new $1 billion initiative to upgrade its vehicle assembly facility in Cologne, Germany, which is one of Ford’s largest manufacturing sites in Europe and the base for Ford of Europe. This investment will transform the current assembly operations into the Ford Cologne Electrification Center dedicated to electric vehicle production, marking Ford’s first such facility in Europe.
Ford also confirmed that its first volume all-electric passenger vehicle for the European market will be manufactured at this facility starting in 2023, and there is consideration for producing a second all-electric vehicle there as well.
Rowley commented, “Our announcement today regarding the transformation of our Cologne facility, which has been the center of our operations in Germany for 90 years, is one of the most significant decisions Ford has made in over a generation. It emphasizes our commitment to Europe and a forward-looking approach with electric vehicles central to our growth strategy.”
Martin Hennig, chairman of the General Works Council of Ford-Werke GmbH, stated, “The choice to designate the Cologne production and development site as Ford’s e-mobility center in Europe sends a strong message to the entire workforce. It provides a long-term outlook for our employees and motivates them to actively participate in shaping this electric future.”
Rowley concluded: “We will provide an outstanding selection of electrified vehicles, along with customer-oriented digital services and experiences, enabling our customers to embark on the journey towards a fully electric future, beginning now with the launch of the all-electric Mustang Mach-E. This, combined with our prominent commercial vehicle business, will lay the foundation for a sustainably profitable Ford operation in Europe.”
Further details regarding Ford’s electrification strategy and the transformation of the Cologne facility will be disclosed.
Sales of electric vehicles in the UK reached an all-time high in September, despite executives from major automakers expressing concerns to the chancellor about the pressure that government targets are placing on the industry.
According to preliminary figures released by the Society of Motor Manufacturers and Traders (SMMT), a trade group, the British automotive sector sold 56,300 electric cars last month, marking the highest figure ever recorded.
This accounted for 20.5% of total sales during that month being electric vehicles.
Nonetheless, the UK executives of BMW, Ford, and JLR (the maker of Land Rover) were among those who wrote to Rachel Reeves last Friday, intensifying their request for government incentives for EV sales amidst an urgency to comply with the UK’s zero-emission vehicle (ZEV) mandate. This initiative is designed to oversee the phasing out of new petrol and diesel vehicle sales and facilitate the transition to electric vehicles over the next six years.
The car manufacturers, which also included the UK heads of Volkswagen, Mercedes-Benz, Nissan, and Stellantis, stated that “our EV market looks set to miss its target.”
For several months, manufacturers globally have voiced concerns about stagnation in EV demand. On Thursday, Japan’s Toyota announced it would postpone the start of electric vehicle production in the US until 2026, having previously indicated that it would begin at the end of 2025. Ford and Volvo have also been among those delaying their necessary transitions.
According to SMMT data, registrations for new diesel vehicles for private buyers in September saw an increase of around 17.2% compared to the same month last year. In contrast, pure battery electric vehicles rose by only about 3.7%.
The plateau in global sales has compelled UK automakers to engage in what the SMMT described as “unprecedented manufacturer discounting” in order to comply with the ZEV mandate and steer clear of penalties which could reach £15,000 per vehicle for non-compliance. The SMMT reported that manufacturers have reduced the prices of electric vehicles by a total of £2 billion this year.
Mike Hawes, the chief executive of the SMMT, noted that “the cost of that compliance is astronomical and unsustainable.”
However, environmental advocates assert that the ZEV mandate is effective in encouraging automakers to boost their electric vehicle sales. The targets are set to become more stringent each year until 2030, when the sale of new petrol and diesel cars will be prohibited (although some hybrids combining a petrol engine with a smaller battery will still be permitted until 2035).
“The regulation is functioning as intended,” stated Ralph Palmer, the UK electric vehicle and fleets officer for the campaign group Transport & Environment. “The government should not yield to this pressure.”
September and March are crucial periods for car sales in the UK, as new number plates are issued, leading to a surge in buyers. There were 275,000 sales of all new cars in the UK in September, reflecting a 1.1% increase compared to last year, although still a fifth lower than sales in 2019, prior to the pandemic.
Sales of electric cars last month, which will be finalized on Friday morning, were especially important since some manufacturers have waited until the last minute to meet the targets for 2024. Under the ZEV mandate, automakers must achieve a nominal target of 22% of their total sales being purely electric. With the inclusion of September sales, the industry is currently achieving 17.8% for the year.
In their letter to Reeves, the car manufacturers emphasized that “mandates don’t make markets” and expressed a need for subsidies to stimulate demand for electric vehicles.
They stated, “As an industry, we are likely to miss those targets and a significant number of brands face the possibility of either purchasing credits from another company or incurring hefty compliance fees.”
The carmakers requested that the chancellor alleviate various taxes to support the industry, including a reduction in VAT.
Robert Forrester, the chief executive of Vertu Motors, has reached out to ministers advocating for the government to further reduce the annual targets, in line with an EU ban on internal combustion engine sales set for 2035.
“Demand or uptake of EVs is not progressing as swiftly as the regulators had anticipated,” he remarked, citing higher prices and deficiencies in the charging network.
Sue Robinson, chief executive of the National Franchised Dealers Association, a lobby group, also noted that the ZEV mandate is “unintentionally constraining the new car market” and called for a reassessment.
However, the ZEV mandate includes significant provisions that exempt car manufacturers from needing to meet the stated 22% target this year. They can obtain “credits” from other manufacturers who have surpassed their goals, including those like Elon Musk’s Tesla and the Chinese company BYD, both of which exclusively sell electric vehicles in the UK. Manufacturers can also earn credits by “over complying” in subsequent years leading up to the 2030 deadline and by making their petrol vehicles less polluting.
Ben Nelmes, chief executive of New Automotive, a think tank, expressed his belief that the industry as a whole would likely avoid fines for 2024, although certain automakers might have to resort to purchasing credits from their competitors.
UK electric vehicle production has declined as companies face increasing pressure
Overall car production dropped by over 15% compared to the previous year, primarily due to a decrease in exports driven by weak demand, as reported by the Society of Motor Manufacturers and Traders (SMMT).
Output of electric and hybrid vehicles saw a reduction of one-third compared to last year, attributed to dwindling demand in Europe and the reconfiguration of plants for new models.
These figures follow an announcement from Stellantis, the manufacturer of Vauxhall, indicating it would shut down its Luton van manufacturing facility, partly as a result of regulations aimed at accelerating the shift to electric vehicles in the UK.
Additionally, Ford disclosed last week that it plans to eliminate 800 jobs in the UK over the next three years due to challenging market conditions, including heightened competition and reduced demand for electric vehicles (EVs).
Mike Hawes, chief executive of the SMMT, stated, “These are alarming times for the automotive sector, with substantial investments in facilities and new zero-emission products facing intense scrutiny.”
He mentioned that global demand for EVs has diminished, while in the UK, manufacturers are dealing with “the strictest targets and the most accelerated timeline” without the necessary incentives to encourage customer demand.
Despite the decrease in EV production in October, the sales of electric cars in the UK have been on the rise.
In October, they represented one in five cars registered, although industry insiders claim this is largely due to unsustainable price reductions.
A growing dispute exists between the government and the industry regarding the phase-out of new petrol and diesel cars over the coming years.
Under the UK’s zero emissions vehicle (ZEV) mandate, manufacturers are currently obligated to sell a specific percentage of cars and vans that produce zero emissions before the 2030 prohibition on new petrol and diesel car sales.
In 2024, EVs must constitute 22% of a carmaker’s sales, and 10% of van sales. This requirement is set to increase.
For each sale that exceeds the limits set by the mandate, companies are required to pay a £15,000 penalty – although they may also purchase “credits” from firms that can adhere to these limits.
Business Secretary Jonathan Reynolds announced that a “fast track” consultation will be conducted to review how the EV targets are enforced.
However, he reiterated Labour’s promise to adhere to the 2030 ban on new petrol and diesel vehicle sales.
A spokesperson for the Department for Business and Trade stated that the government recognizes the industry’s need for “certainty and stability” and is investing £2 billion in vehicle manufacturing along with over £300 million to facilitate the adoption of electric vehicles.
“We are continuously collaborating with the sector to ensure a successful transition,” the spokesperson added.
The closure of Stellantis’ Luton facility will jeopardize 1,100 jobs.
Mark Noble, the former UK manufacturing lead for Stellantis, expressed his “disappointment, shock, and anger” regarding the closure plans to the BBC.
He noted that the decision to close the plant was influenced by “several external factors,” including uncertainties regarding Brexit tariffs and the ZEV mandate.
He mentioned that issues for Stellantis’ UK facilities in Luton and Ellesmere Port “began with Brexit” due to the “significant uncertainty” it caused.
“When you have two UK plants that export over 80% of their production, the confusion about tariffs and lack of clarity significantly affected those two facilities.”
He asserted that concerning the ZEV mandate, the government “needs to determine whether this is a tax, a £6 billion burden on car manufacturers, or a requirement to transition to greener practices.”
“They must make it feasible for car manufacturers to achieve these targets,” he emphasized.
He also remarked that obstacles to the widespread adoption of EVs persist, including insufficient charging infrastructure.
“If everyone were to purchase an electric vehicle tomorrow, I don’t see how we would charge them,” he stated.
However, Vicky Read, the chief executive of the EV charging industry group Charge UK, informed the BBC that a charger “is being set up every 25 minutes.”
The expansion of charging stations relies on private sector investment, making discussions about weakening electric vehicle targets “deeply worrying,” she noted.
According to government data, there are over 71,000 public charging points in the UK, with an average of 57 being added each day.
James Richardson, a government adviser and the director of analysis for the Climate Change Committee, mentioned to the BBC that established car manufacturers risk being surpassed by new entrants.
“Companies often underestimate how swiftly these markets can evolve, leading them to fall behind,” he remarked.
He added that electric sales targets are “significant in sending a message to companies that they must act quickly, or they will lose market share to competitors.”
In November, one out of every four vehicles sold in the UK was electric, based on industry statistics, although the surge in new registrations was largely due to significant discounts.
For the 11th month in a row, electric car sales have risen, as indicated by the Society of Motor Manufacturers and Traders (SMMT), with automakers striving to meet stringent targets.
The SMMT reported that manufacturers provided substantial discounts totaling approximately £4 billion on electric vehicles (EVs).
Nonetheless, companies are expected to fall short of government sales objectives for EVs this year and will likely face hefty payments to comply with regulations.
Mike Hawes, the SMMT’s chief executive, noted that manufacturers are pouring “unprecedented levels” of investment into electric vehicles and “spending billions on attractive offers.”
However, he remarked, “Such incentives cannot continue – the industry cannot achieve the UK’s leading ambitions on its own.”
New registrations of electric cars deviated from a general decline in other vehicle categories.
While most of the new car demand stemmed from fleet sales to businesses, this sector also experienced an overall sales drop.
Sales of new petrol vehicles decreased by over 17%, diesel car sales fell by more than 10%, and hybrids and plug-in hybrids saw declines of over 3% and 1% respectively.
The government has pledged to meet with automakers to discuss EV sales targets, asserting that the targets “will not be weakened” while mentioning “flexibilities” will be considered.
Manufacturers have expressed that they cannot meet the existing targets, which require EV sales to account for 22% of cars sold in 2024, without additional incentives for customers.
Currently, this figure stands at 18.7%, and they believe it could reach 19% by year-end.
However, this still makes them liable to purchase credits from other manufacturers who have accumulated credits for selling EVs.
Many of these companies operate in China or produce vehicles there—such as Tesla, a U.S. company—but other manufacturers may have credits as well.
Automakers have historically argued against subsidizing Chinese companies by acquiring credits.
Earlier this month, both Ford and Stellantis, which owns Vauxhall, announced job reductions, partly attributing them to the EV sales targets.
However, both companies have previously expressed concerns regarding their future in the UK due to additional factors.
Ford shut down its Bridgend facility in 2020, eliminating 1,644 jobs and citing Covid as one reason.
Vauxhall’s prior owner, PSA Group, suggested in 2019 that Brexit posed a threat to its Luton production facility.
On the whole, UK-based firms have been embracing the shift to electric, with JLR’s Jaguar gaining significant attention for its recent rebranding as an electric-only manufacturer.
The UK automotive sector is undergoing a transformative phase characterized by a strong push to increase electric car manufacturing.
Recent data from the Society of Motor Manufacturers and Traders (SMMT) indicates a 7.6% decrease in car production during the first half of the year, with factories assembling 416,074 units, which is 34,094 less than the same timeframe last year.
This decline is primarily attributed to manufacturers reconfiguring production lines to accommodate electrified vehicles, reflecting a considerable £23.7 billion investment made in the industry last year.
Despite a decline in overall production, the focus on electric vehicle manufacturing remains robust.
In the first half of the year, production of electrified vehicles, which includes battery electric, plug-in hybrid, and hybrid models, also fell by 7.6%, mirroring the overall trend.
Nevertheless, these vehicles still account for a significant share of the output, representing 37.8% of total production, which remains unchanged from the previous year.
While domestic car production for the UK market increased by 17.7%, totaling 106,157 units, it was not enough to offset a 13.9% decrease in exports.
The export market holds great importance for the UK, with over 70% of produced cars intended for international markets.
The European Union is the largest market, comprising 55.4% of all exports in the first half of the year, which amounts to 171,745 units.
Other major markets include the US, China, Turkey, and Australia, which together account for 29.4% of exports.
The industry is calling for enhanced government support
Mike Hawes, SMMT Chief Executive, pointed out the swift pace of the UK’s transition to electric vehicles, referring to it as a potential growth driver for the British economy.
He highlighted the necessity of government commitments to gigafactories, decarbonized energy supplies, and an expedited planning process.
These initiatives are essential to improve competitiveness and maintain jobs within the sector.
The industry outlook anticipates a 9.3% decline in light vehicle production this year, with a recovery projected to exceed 1.1 million units by 2028, where more than half are expected to be zero-emission vehicles.
According to the Society of Motor Manufacturers and Traders (SMMT), the UK has the potential to produce over nine million zero-emission vehicles by the year 2035, provided that there is adequate government support. This projection exceeds previous estimates by approximately 600,000 units and is expected to generate substantial economic impact, with a projected value surpassing £290 billion.
In its strategic initiative titled “Vision 2035: Ready to Grow,” SMMT outlines a comprehensive plan aimed at fostering the domestic electric vehicle (EV) market. This vision emphasizes the necessity of transforming the automotive industry through reskilling the workforce, advancing the provision of clean energy solutions, and ensuring that global trade practices remain fair and free. By aligning these goals with the government’s new industrial strategy and the Automotive Sector Plan, SMMT aims to secure a prosperous future for the UK automotive industry, which is crucial for the overall health of the national economy.
Despite the various challenges currently facing the sector, the UK is making significant progress in ramping up electric vehicle production. The combination of strategic investments, robust government backing, and an unwavering focus on innovation and sustainability positions the UK as a potential leader in the global shift towards electric mobility. This leadership not only promises to drive economic growth but also to deliver long-term environmental benefits that support a sustainable future for subsequent generations.
Xiaomi’s first electric vehicle, the SU7, has become an overwhelming success for the Chinese smartphone company, but it continues to demonstrate its ability to create a buzz in the domestic market.
During an annual conference in July, Xiaomi’s founder, chairman, and CEO, Lei Jun, introduced the SU7 Ultra prototype and has frequently highlighted its performance ambitions on China’s top social media platform, Weibo.
At the challenging Nurburgring in Germany, recognized as the global standard for performance car lap times, the four-door electric vehicle achieved a remarkable time of 6:46.874 – an astonishing 20 seconds quicker than the Porsche Taycan Turbo GT.
This represents a significant challenge for any manufacturer, especially for a company more accustomed to smartphones and consumer electronics.
As stated by Lei Jun, the record was accomplished with British endurance driver David Pittard at the wheel in just one lap – a remarkable single-attempt feat, so to speak.
In the footage from the onboard camera, which can be accessed on YouTube (or simply click above), the SU7 Ultra experienced a temporary power loss about two-thirds into the run. If this issue hadn’t occurred, the lap time could have been even more impressive.
Performance is made accessible
Not merely a publicity stunt, the Xiaomi SU7 Ultra, boasting 1,526hp and a tri-motor setup, is set to enter production early next year, joining the rest of the vehicle line-up. The price is anticipated to be 814,900 Chinese yuan – roughly $114,000/£88,000/AU$174,000 – but like the entire Xiaomi EV collection, it will only be available in China.
This vehicle offers remarkable value for the price, with specifications that read like a car enthusiast’s wish list: carbon ceramic brakes, a 0-62mph acceleration time of 1.98 seconds, a top speed of 217mph, adjustable Bilstein suspension, and an interior lavishly adorned with carbon fibre and Alcantara.
Although the production version will not be as extreme as the car that tackled the Nurburgring, it will still sport a rear spoiler, an updated front splitter with large air intakes, and an active rear diffuser for enhanced downforce.
It is perhaps unsurprising that Xiaomi received 3,680 deposits within the first 10 minutes of the car’s announcement, according to CarScoops.
Xiaomi’s SU7 Ultra secured 3,680 pre-orders just 10 minutes after pre-sales commenced as the company begins demonstrating its technological strength in the EV sector.
Xiaomi (HKG: 1810, OTCMKTS: XIACY) has introduced the production model of its SU7 Ultra, further showcasing its technical capabilities in the electric vehicle arena.
At a product launch event that featured announcements around smartphones, smartwatches, TVs, and washing machines, Lei Jun, the founder, chairman, and CEO, revealed that the powerful SU7 Ultra is now available for pre-order in China at a price of RMB 814,900 ($114,200).
The official launch event for the SU7 Ultra – which is priced nearly four times higher than the standard SU7, starting at RMB 215,900 – will take place in March 2025.
Customers can begin pre-ordering the SU7 Ultra immediately with a deposit of RMB 10,000, which is refundable at any time before the official release.
The vehicle received 3,680 pre-orders within just 10 minutes after the pre-sales began, as announced by Xiaomi’s automotive division, Xiaomi EV, on Weibo.
Characterized by Lei as Xiaomi’s “Dream Car” for himself and performance-oriented enthusiasts, the SU7 Ultra stands out as the most potent variation of the company’s first electric vehicle.
The SU7 electric sedan launched on March 28, featuring three variants – Standard, Pro, and Max – with starting prices of RMB 215,900, RMB 245,900, and RMB 299,900, respectively.
This month alone, over 20,000 units have been delivered, marking the first time this milestone has been achieved, as stated by Xiaomi during today’s event.
During his annual presentation on July 19, Lei introduced the SU7 Ultra prototype, noting that it was designed based on the SU7 for both performance and track use.
Xiaomi sought to challenge the renowned Nurburgring track with the SU7 Ultra prototype earlier this month, but the initial plan was postponed due to rain.
The prototype successfully completed that challenge yesterday, achieving a final lap time of 6 minutes and 46.874 seconds, making it the fastest four-door vehicle to lap the track, Xiaomi announced earlier today.
Xiaomi refined the chassis system for the production SU7 Ultra at the Nürburgring and began validation testing on June 11, according to Lei.
The model is designed for track use and can be operated on the course without modifications, as per the company’s claims.
Xiaomi’s tests indicated that the cooling system of the SU7 Ultra production car did not overheat after two laps at the Nürburgring.
The production version of the SU7 Ultra is equipped with three motors, including two Xiaomi V8s motors, each capable of generating 578 horsepower, along with a V6s motor that delivers 392 horsepower.
This powertrain offers a total output of up to 1,548 hp, enabling the SU7 Ultra to accelerate from 0 to 100 km/h in 1.98 seconds and achieve a top speed exceeding 350 km/h, thereby establishing it as the fastest four-door production vehicle.
The vehicle can go from 0 to 200 km/h in 5.85 seconds and reach 400 km/h in 9.23 seconds.
Constructed on an 800 V high-voltage foundation, this car features a 5.2 C charging multiplier, allowing it to charge from 10 percent to 80 percent in just 11 minutes.
The price for the production version of the SU7 Ultra aligns closely with the projections made by certain Wall Street analysts.
In a report earlier this month, Goldman Sachs estimated that Xiaomi’s SU7 Ultra will sell around 4,000 units next year, with an expected average price of about RMB 800,000, accounting for 5 percent of its electric vehicle revenue.
Xiaomi SU7 Ultra comes with the same tri-motor layout and a battery pack optimized for track performance as the Xiaomi SU7 Ultra Prototype, offering a peak power of 1548PS. It can accelerate from 0 to 100km/h in just 1.98 seconds (without one foot rollout) and has a maximum speed designed to reach 350km/h, making it the fastest four-door mass-produced vehicle. The model is equipped with a cooling system optimized for track use, ensuring that it can complete two laps on the Nürburgring Nordschleife without overheating.
Additionally, it features a top-tier braking system, achieving a stopping distance of only 30.8 meters from 100 km/h to a complete stop. Xiaomi SU7 Ultra is also provided with a peak chassis system fine-tuned for the Nürburgring Nordschleife, which enhances chassis control and raises the control limits. As a four-door “race car,” it is ready for track use right off the production line. Furthermore, the Xiaomi SU7 Ultra boasts various upgrades in areas like smart driving, smart cockpit, safety, and a luxurious experience.
On October 28 (German time), the Xiaomi SU7 Ultra Prototype accomplished its first lap challenge at the Nürburgring Nordschleife, breaking the long-standing seven-year record for the fastest four-door sedan with a time of 6’46″874. This marks the first instance of a Chinese brand earning the title of “The Nürburgring Nordschleife World’s Fastest Four-Door Car.” Xiaomi EV will continue to pursue innovative breakthroughs in electric technology and validate its vehicles through testing at the Nürburgring Nordschleife. The mass-produced array of Xiaomi SU7 Ultra is also set to take on the Nürburgring Nordschleife next year.
The Xiaomi SU7 Ultra is now open for pre-orders, with its official launch planned for March 2025. The pre-order price is set at 814,900 yuan, and a deposit of 10,000 yuan is required to express intent. Those who pre-order will receive priority delivery.
Designed for high performance: From streets to tracks, where aesthetic meets functionality
The design of the Xiaomi SU7 Ultra emphasizes optimal performance, with each new element serving a functional role, devoid of any unnecessary ornamentation. For its exterior, Xiaomi SU7 Ultra evolves from the Xiaomi SU7 Max, featuring an enhanced aerodynamic kit and larger body dimensions. With a length of 5115mm, width of 1970mm, height of 1465mm, and a wheelbase of 3000mm, the vehicle is longer and lower, exhibiting a more aggressive, battle-ready profile.
At the front, the Xiaomi SU7 Ultra showcases an oversized splitter and air dam, along with “U-shaped” air curtains that effectively boost downforce at the front end. A larger opening for the air intake grille has been introduced, increasing the heat dissipation surface area by 10%. An adaptive active rear diffuser has been incorporated, featuring two-speed adjustments that balance wind resistance, downforce, and energy efficiency for day-to-day driving. Additionally, a new carbon fiber fixed rear spoiler (with a wingspan of 1560mm and chord length of 240mm) generates substantial downforce at high velocities. Thanks to this new aerodynamic framework, the Xiaomi SU7 Ultra achieves a maximum downforce of 285kg, comparable to that of supercars.
The interior of the Xiaomi SU7 Ultra highlights sportiness, with improved seat and steering wheel designs. The newly designed sports seats offer enhanced side support, with quicker response times and broader support areas, enabling better body control during high-intensity driving. The seats also display exclusive track-inspired embroidery and an Ultra logo, adding to the sporty look.
The steering wheel has undergone a complete redesign, utilizing a race-inspired flat top and bottom. The material has been upgraded to carbon fiber, with the grip covered in Alcantara®️ microfiber to prevent slipping easily. A yellow centering marker at the 12 o’clock position assists with steering during vigorous handling. This new aesthetic, combined with yellow seat belts and a red Boost button on the steering wheel, creates a race-ready cockpit ambiance within the Xiaomi SU7 Ultra.
The interior materials of the Xiaomi SU7 Ultra have been further improved, extensively featuring Italian Alcantara®️ microfiber across the vehicle, covering over 5m². This material wraps around all seat contact areas, steering wheel grip zones, dashboard stitching, and interior door panels, providing a premium sensation and a more immersive driving atmosphere.
The Xiaomi SU7 Ultra extensively incorporates carbon fiber materials, enhancing its sporty feel while reducing overall weight. Inside, carbon fiber elements can be found in the front-seat back panels, center console, and door sills, which accentuate its athletic look. On the exterior, the Xiaomi SU7 Ultra showcases a large carbon fiber roof of 1.7m²*, cutting down weight by 12kg. Carbon fiber is utilized in 17 different locations, amounting to a total of 3.74m². Additionally, 90% of these components are processed using a high-quality hot press method, ensuring excellent texture and quality.
In terms of peak performance, it is recognized as the world’s fastest mass-produced four-door sedan around the Nürburgring Nordschleife, boasting 1548PS and achieving a 0-100km/h time of 1.98 seconds, with a top speed designed to reach 350km/h.
As Xiaomi’s premier high-performance electric vehicle, the SU7 Ultra features the same power system as its prototype, enabling outstanding performance.
The Xiaomi SU7 Ultra produces a peak output of 1548PS and can go from 0 to 100km/h in only 1.98 seconds (without one-foot rollout). It sets a new standard as the first mass-produced four-door sedan to accelerate from 0 to 200km/h in just 5.86 seconds and can achieve a designed top speed of 350km/h.
The exceptional performance of the Xiaomi SU7 Ultra is backed by leading-edge technology. It utilizes a tri-motor layout that includes two V8s e-motors and one V6s e-motor, marking the first commercial production of Xiaomi’s in-house developed HyperEngine V8s. This HyperEngine V8s can reach a maximum revolution of 27,200rpm, making it the most powerful and highest-revolution main drive e-motor currently on the market.
Xiaomi EV has continuously prioritized research and development (R&D) funding and maintained a focus on innovation. To date, the company has filed for 242 patents related to electric motors and electric power control units, with 128 of these already granted. Xiaomi’s self-developed electric drive also received the “Global New Energy Vehicle Frontier and Innovation Technology Award” during the 2024 World New Energy Vehicle Conference.
Regarding batteries, the Xiaomi SU7 Ultra employs the same track-optimized, high-capacity battery pack as the prototype, featuring the CATL Qilin 2.0 battery. This battery pack is among the most powerful mass-produced options available, capable of a maximum discharge rate of 16C and a maximum discharge power of 1330kW. Even with just 20% battery remaining, the discharge power still reaches 800kW.
The highest charging rate stands at 5.2C, allowing for charging from 10% to 80% to complete in only 11 minutes. With a CLTC range of 630km, it merges high performance with extended reach. Integrating Xiaomi’s CTB battery technology enhances volume efficiency, and the battery pack includes dual large-surface active cooling to ensure optimal heat dissipation and safety.
For electric vehicles to sustain high performance over time, they require exceptional cooling capabilities. The Xiaomi SU7 Ultra has seen upgrades in its cooling system across all components. The efficiencies of the compressor, water pump, cooling fan, and radiator have been significantly improved. The maximum heat dissipation per minute reaches 2.7*10^6J, which is three times greater than the heat dissipation capacity of a standard EV, effectively preventing overheating during two back-to-back laps on the Nürburgring Nordschleife.
The Xiaomi SU7 Ultra comes equipped with a top-tier braking system, featuring carbon ceramic brake discs, high-performance fixed calipers, and specialized brake pads. It can halt from 100km/h to 0 in just 30.8m, and it successfully completes ten consecutive braking tests from 180km/h to 0 without any fading. Furthermore, the Xiaomi SU7 Ultra boasts the largest racing-grade carbon ceramic brake discs available in a sports sedan.
The front brake disc has a diameter of 430mm, the largest size for a carbon ceramic disc on a sedan. In comparison to conventional steel brake discs, carbon ceramic discs can withstand higher temperatures, with a maximum operating threshold exceeding 1300°C, more than twice that of typical steel discs. They are also more resilient against wear and lighter in weight. Their lifespan exceeds 500,000km while reducing the vehicle’s total weight by 57kg.
Additionally, the Xiaomi SU7 Ultra is fitted with Akebono®️ high-performance brake calipers. The fixed calipers have six pistons at the front and four at the rear, with working areas of 148cm² and 93cm² respectively, offering outstanding braking power. The vehicle also features endurance racing-level ENDLESS®️ high-performance brake pads*, which can function at a maximum temperature of 1100°C while maintaining stable braking performance. Moreover, the efficient braking energy regeneration system can achieve a maximum deceleration of 0.6g and regeneration power exceeding 400kW, significantly easing the load on the braking system.
Exceptional driving experience: The track-tuned chassis system of the Xiaomi SU7 Ultra is specifically designed for the Nürburgring Nordschleife, making it ready for the track straight from the factory.
The Xiaomi SU7 Ultra is equipped with a peak chassis system fine-tuned for the Nürburgring Nordschleife, ensuring improved chassis control and an elevated handling capability. As a four-door “race car,” it is track-ready right from the factory.
For its suspension, the Xiaomi SU7 Ultra incorporates dual-chamber air springs and high-performance continuous damping control (CDC), which allow for a broader range of spring stiffness and damping adjustments, making the standard mode more comfortable and the sport mode more dynamic. It also offers track enthusiasts a professional-grade Bilstein®️ EVO T1 coilover shock absorber kit, featuring a maximum spring stiffness of 300N/mm and a peak damping force of 9000N.
With 10 levels for compression and rebound damping adjustment, it significantly enhances the control limits during acceleration, braking, and cornering, providing unmatched support during track cornering. Users have the option to choose between dual-chamber air springs or coilover shock absorbers based on their preferences.
Regarding chassis control, the Xiaomi SU7 Ultra’s tri-motor setup facilitates torque-vectoring control. The torque from the three electric motors is distributed independently and dynamically, with the torque adjusted 500 times per second, greatly improving the vehicle’s handling and stability. When cornering, the system directs more torque to the outer wheels to enhance steering response and speed during corner exits.
If one wheel encounters slippery conditions, the system can instantaneously adjust the torque to the left and right wheels within milliseconds to assist the vehicle in navigating more effectively. This torque-vectoring control system adheres to the highest ASIL-D functional safety standard in the industry, with a maximum fault-coordinated shutdown time of just 14ms, ensuring the vehicle’s safety.
The Xiaomi SU7 Ultra’s chassis system has experienced extensive tuning at the Nürburgring Nordschleife. Beginning June 11, the Xiaomi SU7 Ultra has undergone real-world testing at the Nürburgring Nordschleife, covering over 3,000 kilometers over six weeks of refinement. Utilizing the globally recognized Nürburgring Nordschleife as a testing ground, the Xiaomi SU7 Ultra aims to provide users with optimal handling performance.
The Xiaomi SU7 Ultra comes equipped with a tri-motor configuration, a high-capacity battery pack, an optimally designed cooling system for the track, a carbon ceramic braking system, dual-chamber air springs, and advanced continuous damping control, allowing you to experience the thrill of extreme speed on the track. Users with more demanding track requirements can select top-tier equipment such as Bilstein®️ coilover shock absorbers* and ENDLESS®️ high-performance brake pads*.
Unmatched immersive experience: The exclusive cockpit UI and sporty audio, along with a dedicated Racetrack Master app for competitive driving.
To enhance its outstanding performance and chassis system, the Xiaomi SU7 Ultra has introduced a novel visual and auditory interaction experience through an exclusive Racetrack Master app, delivering an unparalleled immersive experience.
The central control screen, instrument cluster, and various UI elements of the HUD have been upgraded in the Xiaomi SU7 Ultra, resulting in a cooler and sportier exclusive cockpit UI design. The Xiaomi SU7 Ultra features three new sound wave options for sports: super power, super sound, and super pulse, and includes a 40W external speaker to support these sound waves.
Xiaomi SU7 Ultra has developed a robust exclusive Racetrack Master app specifically for track users. This app can showcase all vehicle information, including real-time lap times, vehicle condition, and adjustments to driving modes. When drivers begin racing, they have the ability to set a benchmark lap time that shows the difference from the current lap time in real time, maximizing competitive engagement. Post-race, it provides historical lap statistics and visual analysis of results, along with key metrics like maximum speed, maximum G-force, steering wheel angle, and braking force. Drivers can easily export and share their race footage with just a click.
Currently, Xiaomi EV has partnered with 20 professional race tracks across China, adding track maps and rankings to the dedicated racetrack application. More professional tracks are expected to be incorporated in the future.
The Xiaomi SU7 Ultra presents a range of driving modes suitable for both track safety and everyday use. For track performance, it offers several options including endurance mode, qualifying mode, drift mode, and master custom mode, providing endless driving excitement. For daily driving needs, available modes include beginner mode, economy mode, wet mode, sport mode, and custom mode, among others. To ensure safe operation, drivers must possess driving skills or certification to activate track mode for the first time in the Xiaomi SU7 Ultra. The daily driving modes come with limitations on power and speed.
The Xiaomi SU7 Ultra is a performance powerhouse that resonates with individuals who seek the excitement of driving, aspire for the remarkable, and aim to make the most of each day. It is ideally suited for both everyday driving and racetrack adventures. This luxury tech sedan radiates a robust sense of sophistication and technology, making it appropriate for daily use, whether for business travel or meetings. It boasts top-tier technological features and provides unaltered performance capabilities for high-speed thrills.
Pre-orders for the Xiaomi SU7 Ultra are now open, with the official launch set for March 2025. The pre-order price is established at 814,900 yuan, requiring a deposit of 10,000 yuan to express intent. Those who pre-order will enjoy priority delivery.
The Xiaomi SU7 has made its initial official debut in Malaysia
The Malaysian unveiling of the Xiaomi SU7 took place at Suria KLCC, marking the first look at the company’s inaugural electric vehicle.
However, don’t rush to Suria KLCC in hopes of placing an order for the SU7. Xiaomi has not yet started accepting orders for this EV in Malaysia.
In reality, the launch of the SU7 in this market is not imminent. Xiaomi brought the EV to Malaysia primarily for a technology showcase, akin to Tesla’s approach with the Cybertruck.
The SU7 is featured as part of the Human x Car x Home ecosystem display, which is included in the Xiaomi 14T Series roadshow currently ongoing at Suria KLCC until this Sunday, October 20. Attendees can examine the EV in person at the event, although those who purchase the Xiaomi 14T Series during the showcase will be granted access to a priority lane.
At its core, Xiaomi HyperOS drives the concept of the company’s Human x Car x Home ecosystem, focusing on deep collaboration across its range of smart devices, spanning personal gadgets and home automation to vehicles. This concept represents an evolution of the firm’s earlier Smartphone x AIoT philosophy.
It also underscores the significance of vehicles in Xiaomi’s broader vision, particularly as the company enters the EV market. When Xiaomi first unveiled the SU7 internationally at Mobile World Congress earlier this year, they stated that their ecosystem comprises over 200 product categories, involving 600 million devices globally, covering more than 95% of users’ daily needs.
A Comparison of BYD SEAL EV and Xiaomi SU7
In the rapidly expanding market for new energy vehicles, the question, “Which pure electric vehicle should young buyers consider first?” has gained notable traction. As two eagerly awaited pure electric sedans, the refreshed BYD SEAL EV and Xiaomi SU7 each captivate young consumers with their distinct appeal. Today, we’ll conduct a straightforward comparison based on exterior design, interior features, power, and smart capabilities—key aspects for young buyers—to determine which vehicle better satisfies their preferences.
Exterior Design: Distinctive Styles, Each with Its Own Charm
What do young consumers prioritize when purchasing a vehicle? Naturally, the exterior comes first! The BYD SEAL EV showcases the brand’s hallmark minimalist design, characterized by sleek lines and a closed front grille that underscores its identity as an electric vehicle. Its fastback silhouette, paired with concealed door handles, creates a robust sporty aesthetic. Overall, the BYD SEAL EV’s exterior design adheres to contemporary aesthetic trends while exuding energy and style.
Conversely, the Xiaomi SU7 adopts a subtle sporty design, with its body profile reminiscent of a Porsche Taycan. The vehicle features a notably low design, incorporating semi-concealed door handles and a streamlined body that produces a visually striking appearance. Additionally, the Xiaomi SU7 is equipped with lidar and an electric spoiler, enhancing its uniqueness and technological allure, marking features that are uncommon among traditional brand offerings.
Interior layout: A combination of comfort and technology
Inside, the BYD SEAL EV prioritizes functionality and a sense of advanced technology. From a design standpoint, the new BYD SEAL EV has received a substantial interior makeover, introducing practical elements such as a knee airbag for front passengers, a central airbag for the front row, and soundproof glass for the rear seats, significantly boosting passenger comfort. Furthermore, the BYD SEAL EV includes four-zone voice recognition and 50W wireless fast charging, fulfilling young consumers’ desire for intelligent connectivity.
The Xiaomi SU7’s interior design features a minimalist and sporty aesthetic, emphasizing sustainable materials and high quality. A standout aspect of the central console is the large 16.1-inch display, which delivers exceptional display quality along with top-notch smoothness and functionality. The Xiaomi SU7’s smart cockpit system utilizes HyperOS, creating a deep integration with Xiaomi smartphones that results in an outstanding smart user experience. For fans of the Xiaomi ecosystem, this is truly worth considering.
Power Performance: A Battle of Strength and Efficiency
The BYD SEAL EV has received considerable upgrades in power, beginning with a 231-horsepower rear-wheel-drive motor, while the high-power variant achieves 313 horsepower. Although the driving range has slightly decreased in some models to boost power, the SEAL EV’s overall power performance remains robust. Additionally, the incorporation of the 800V high-voltage platform has significantly enhanced charging speeds, improving the overall user experience.
The Xiaomi SU7 also showcases remarkable power performance. The standard version of this vehicle can accelerate from 0 to 100 km/h in just 5.28 seconds, rivaling entry-level sports cars. In comparison to the BYD SEAL EV, this car’s performance is quite impressive. Furthermore, regarding chassis tuning, the Xiaomi SU7 excels in sporty performance and comfort. It effectively minimizes minor vibrations and offers superb support during cornering, making it feel particularly confident on mountain roads.
Smart Features: A Dual Assurance of Technology and Safety
Now, let’s evaluate the intelligent functionalities. The BYD SEAL EV has received a thorough upgrade in its smart driving system, starting with a monocular perception camera. The smart driving variant features a mix of binocular cameras and lidar, facilitating intelligent driving capabilities both on highways and in urban settings. While it still trails behind leading manufacturers like Huawei, it sufficiently meets the requirements of most consumers.
The intelligent cockpit system of the Xiaomi SU7 also stands out. Its in-car interaction system, based on HyperOS, is a leader in terms of both smoothness and functionality. Additionally, the Xiaomi SU7 provides a variety of smart connectivity options, including direct integration with Xiaomi smartphones and voice control through Xiao Ai (the AI assistant). Users can even manage smart home devices with ease, offering an unparalleled smart experience.
Conclusion:
To summarize, both the BYD SEAL EV and the Xiaomi SU7 possess unique advantages, making it challenging to declare a definitive winner. The BYD SEAL EV has attracted considerable consumer interest thanks to its strong performance, extensive smart driving features, and comfortable seating experience. Conversely, the Xiaomi SU7 appeals to younger buyers with its sleek sporty design, exceptional chassis tuning, and advanced smart cockpit system. Ultimately, the choice between these two models lies in personal preferences and requirements. Whether opting for the BYD SEAL EV or the Xiaomi SU7, each stands out as an impressive electric sedan worth considering for younger consumers.
In a striking development influenced by the evolving business landscape and significant geopolitical factors, the Chinese smartphone and consumer electronics powerhouse Xiaomi has entered the automotive industry. This strategic shift was extensively detailed by Lei Jun, the dynamic founder, chairman, and CEO of Xiaomi, during his speech for the year 2024.
The Trigger for Transformation
This monumental transition was signaled by a significant journey that commenced on January 15, 2021. Xiaomi encountered an unexpected crisis when the United States imposed sanctions against the company. Lei Jun described learning about the sanctions as “a bolt from the blue,” which severely impacted operations and future prospects.
During one of the most crucial board meetings, the question was posed: “If mobile phones can no longer be produced, what will happen to our 30,000 to 40,000 employees?” This marked the beginning of a determined effort to seek alternative paths and create new opportunities, eventually leading Xiaomi to consider entering the automotive sector.
Encouragement and Assistance from Industry Leaders
In that moment of uncertainty, Lei Jun was not alone. Industry colleagues, including Li Bin from NIO and He Xiaopeng from Xpeng Motors, offered him strong encouragement during this challenging time. These pioneers in China’s electric vehicle market were well aware of the challenges and possibilities in vehicle manufacturing and encouraged Xiaomi to pursue this direction.
The Choice to Manufacture Vehicles
Shortly thereafter, Lei Jun embarked on his next significant business venture to enter the car manufacturing sector. On March 20, 2021, Xiaomi made an official announcement regarding its entry into the automobile manufacturing industry, which became Lei Jun’s final entrepreneurial undertaking. The response was overwhelming; in just over three years, Xiaomi Auto garnered approximately 380,000 resumes, reflecting the public’s strong interest and confidence in this new path for Xiaomi.
Strategic Intent of Xiaomi
For Xiaomi, launching a car manufacturing business is more than just diversification—it’s a strategic initiative aimed at leveraging its technological expertise and consumer electronics strengths in the rapidly expanding electric vehicle market. Xiaomi plans to enhance its innovative capabilities in areas such as AI, IoT, and software in conjunction with automotive technology to create intelligent vehicles that deliver seamless user experiences.
Obstacles and Prospects Ahead
While the excitement and backing are palpable, Xiaomi’s entry into the automotive sector comes with its own set of challenges. The company will need to tackle:
Technological Integration: Smoothly incorporating existing technologies into new automotive uses.
Market Competition: Intense rivalry from established automotive brands and tech companies venturing into electric vehicles.
Regulatory Landscape: Adhering to global automotive regulations and standards, which differ from those in the consumer electronics field.
Lei Jun’s address at the Mi Mixer event marked a definitive turning point for Xiaomi. For the company, stepping into the car manufacturing industry symbolizes more than mere diversification; it represents a transformation in its identity and strategy, influenced by external pressures and internal strengths. The global audience will be keenly watching how Xiaomi accelerates this vision with innovative contributions to the automotive industry.
Xiaomi has received a license from the Chinese government to produce electric vehicles, setting the stage for its third model.
On July 12, the Chinese authorities announced that Xiaomi could independently assemble electric vehicles, meaning the smartphone company has passed the necessary regulations to increase production without relying on its usual car manufacturing partner, BAIC.
This development is significant as the approval from Chinese regulators will facilitate a smooth scale-up in production for Xiaomi, which has increased its delivery goal for the current year to 120,000 units from 72,000 and aims to attract a broader customer base with future models.
According to the public registration filings released by China’s Ministry of Industry and Information Technology (MIIT) on July 12, Xiaomi is now recognized as one of the “all-electric passenger car manufacturers.”
The company has also revised its registration filing for its initial consumer vehicle, the SU7, with the country’s main industry regulatory authority, now featuring the “Xiaomi” branding on the back instead of “Beijing Xiaomi” as was previously shown in the MIIT images.
The well-received sedan has consistently been produced at Xiaomi’s facility in the Beijing Economic and Technological Development Zone, but its production application was initially submitted under the name of a BAIC subsidiary, TechNode reported.
Xiaomi awaited final clearance from MIIT after receiving initial approval from China’s state planning authority for EV manufacturing, as reported by Reuters last August, while also seeking a partner for its second vehicle production. Its plant in Beijing has an annual production capacity of 150,000 cars.
For context, Xiaomi reached the milestone of 10,000 units sold by June, marking its third month of deliveries, contributing to a year-to-date volume of nearly 26,000 units for its competitor to Tesla’s Model 3.
In May, President Lu Weibing expressed to investors that the target for car deliveries this year is 120,000, which exceeds the initial goal of 72,000 units disclosed by CEO Lei Jun during Xiaomi’s annual investor conference in April, as reported by CNBC.
Starting from RMB 215,900 (equivalent to $29,881), the stylish all-electric Xiaomi SU7, resembling the Porsche Taycan, has achieved notable success in China, amassing 88,898 pre-orders within 24 hours of its launch on March 28. The company has faced pressure to ensure timely deliveries since then.
Additionally, Xiaomi is racing to launch its second vehicle, an all-electric SUV, in the first half of next year, while plans indicate that the third model may be an extended-range hybrid (EREV) aimed at Chinese families, anticipated for release in 2026.
Xiaomi’s impressive growth in 2024 is evident in its interim financial report for the first half of the year, showcasing significant success and rapid expansion across its main business areas, reinforcing its global position in smartphones, AIoT, and smart devices. With strong financial outcomes, record-setting shipments, and ambitious growth strategies, Xiaomi is gearing up for a prominent market presence for the rest of the year.
In financial highlights, Xiaomi’s operating income over the first six months of 2024 increased to 164.395 billion yuan, reflecting a substantial year-on-year growth of 29.62%. This strong revenue increase was accompanied by a 17.86% growth in net profit, reaching a total of 9.28 billion yuan. These results demonstrate Xiaomi’s capacity to leverage its diverse product offerings and global growth.
The mobile phone and AIoT sectors remain crucial for Xiaomi, generating 158 billion yuan in revenue—an increase of 24.6% compared to 2023. Notably, smartphone shipments achieved an impressive total of 82.2 million units, significantly boosting the company’s overall financial success. Revenue from smartphones rose by 29.9%, from 71.6 billion yuan in the same period last year to an outstanding 93 billion yuan for the first half of 2024.
Xiaomi’s IoT and consumer product sector, encompassing smart home devices and wearables, also experienced robust growth. This segment’s revenue increased by 20.6% year-over-year, totaling 47.1 billion yuan, with the number of connected IoT devices exceeding 822.2 million, reflecting a 25.6% rise compared to last year.
In addition to its established strengths in mobile and IoT, Xiaomi has seen advancements in its innovative pursuits, including smart electric vehicles. These segments generated 6.4 billion yuan in revenue, highlighting Xiaomi’s strategic investments in emerging fields. The company’s entry into the electric vehicle market has yielded the delivery of 27,367 units within just six months, underscoring its effective diversification strategy.
Wearables also performed exceptionally well in the first half of the year, with revenue soaring by 37.4% year-on-year, mostly driven by the growing popularity of smartwatches and TWS headphones in global markets.
Xiaomi’s smart home devices experienced notable growth of 40.5% year-on-year. This increase was particularly linked to a surge in shipments of air conditioners, refrigerators, and washing machines within mainland China.
Global Expansion and User Growth
Xiaomi is extending its reach, both in terms of user base and physical retail locations. The company now boasts 675.8 million global monthly active users, reflecting an 11.5% year-on-year rise. Xiaomi’s shift toward innovative retail strategies has resulted in over 12,000 physical stores in mainland China as of June 30, 2024.
Additionally, Xiaomi’s revenue from international markets amounted to 75.9 billion yuan, which constitutes 46.2% of its total revenue, underscoring the brand’s robust international presence. Its ventures into various regions have proven successful, establishing Xiaomi as a leading player in consumer electronics globally.
Conclusion: A Pivotal Year of Innovation
2024 is turning out to be a significant year for Xiaomi Group, marked by dramatic revenue growth, innovative product releases, and entry into new sectors such as electric vehicles. The company’s mobile and AIoT divisions continue to excel, bolstered by strategic investments in innovation and retail. As Xiaomi broadens its global ecosystem, it’s clear that the company’s ambition of creating a connected world of smart devices is nearing realization. The next six months will be crucial as Xiaomi ventures into new areas and strengthens its presence in key global markets.
On Monday, Xiaomi Corp announced its goal to deliver 130,000 electric vehicles this year, increasing its forecast for the third time due to a 30.5% rise in third-quarter revenue.
CEO Lei Jun revealed via social media that the electronics giant was updating its target to deliver 120,000 units of its first EV, the SU7 sedan, as demand continues to climb. This new goal significantly surpasses the initial aim of 76,000 set at the launch of the SU7 earlier this year.
The company introduced the car in March, taking design inspiration from Porsche, and entered the competitive Chinese EV market with an appealing price point of under $30,000 for the base version, which is $4,000 less than Tesla’s Model 3 in China.
Sales of electric and plug-in hybrid vehicles in China have now accounted for over half of total sales in the largest auto market globally. In October, this category saw a 56.7% increase compared to the previous year, marking the fourth consecutive month battery-powered vehicles, including plug-ins, outperformed gasoline cars.
To meet the rising demand, Xiaomi has increased factory production shifts since June and has launched the premium SU7 Ultra model which is priced over $110,000.
Following the earnings call, Xiaomi’s President Lu Weibing mentioned that their factory currently has the capability to produce 20,000 cars per month, with potential for further expansion.
“Our investment remains significant as we continue enhancing our hardware and software. The ultimate delivery numbers are not the main focus; we are maintaining strong investments and prioritizing R&D for new models,” he stated.
One area of focus for Xiaomi involves the development of autonomous driving technology.
AUTO BUSINESS STILL OPERATING AT A LOSS
Revenue for the quarter ending September 30 was reported at 92.5 billion yuan ($12.77 billion), surpassing an LSEG consensus estimate from 15 analysts which projected 91.1 billion yuan.
According to Huatai Securities, Xiaomi is expected to deliver 400,000 electric vehicles by 2025, at which point electric cars may contribute approximately one-fifth of revenue, compared to the current 8%.
However, Xiaomi’s automotive division is still facing losses. This segment reported an adjusted loss of 1.5 billion yuan for the quarter with a gross profit margin of 17.1%.
During this quarter, Xiaomi retained its status as the world’s third-largest smartphone manufacturer, with shipments reaching 42.8 million units, a 3% increase, capturing 14% of the market as reported by research firm Canalys.
Lu indicated that the company intends to grow its offline retail outlet count in mainland China from 13,000 to 15,000 by year-end, and aims for 20,000 by next year, while making substantial investments in technology to increase market share.
Xiaomi reported a 4.4% rise in adjusted net profit to 6.25 billion yuan, exceeding a consensus estimate of 5.92 billion yuan.
A new electric ferry service using advanced technology started operations in Stockholm on Tuesday, providing commuters with an eco-friendly option to navigate the waters of the Swedish capital, situated across 14 islands.
In what Stockholm declared to be a world first, 25 commuters in the Ekero suburb boarded the Nova, a hydrofoil ferry that runs on electric motors. The ferry glided about 1 meter (3 feet) above the surface and traveled 15 kilometers (9 miles) to reach Stockholm’s City Hall in just half an hour. In contrast, the regular diesel-powered ferry service takes 45 minutes during the morning commute, without any stops.
“We aim to lead the way in the green transition on the water,” stated Gustav Hemming, the city councilor responsible for climate and infrastructure. The goal of the nine-month pilot project was to encourage more people to leave their cars at home and opt for a public transportation card instead.
Gustav Hasselskog, the CEO of electric boat manufacturer Candela, referred to it as “a significant change for urban transportation and a revitalization of our waterways.”
He noted that the Nova is the inaugural vessel of Candela’s new P-12 model to be put into service. Its computer-controlled hydrofoil wings elevate the hull above the water, resulting in an 80% reduction in energy consumption compared to traditional vessels by minimizing water resistance.
“Traditional ships haven’t advanced significantly in the last century and rank among the least energy-efficient modes of transport, second only to a battle tank,” Hasselskog remarked in a statement.
As of Tuesday, the Nova has officially joined the fleet of ferries managed by Stockholm’s public transport authority, SL.
The ferry is built to accommodate 25 passengers, including a wheelchair space. There are speed restrictions on certain sections of the route, but there are no limits on open water. The hydrofoil boat maintains a cruising speed of roughly 25 knots (46 kph or 29 mph) and can achieve a top speed of 30 knots (56 kph or 35 mph) — significantly faster than other electric passenger ferries. It accomplishes this with carbon fiber hydrofoil wings that elevate the vessel, reducing drag.
Additionally, the vessel is exempt from Stockholm’s 12-knot speed limit as it produces no wake — the waves created by a boat moving through the water that increase with speed and can potentially overwhelm other vessels or erode the shore.
Candela claims that its technology lowers the energy consumption per passenger-kilometer by 95% when compared to diesel ferries operating in the scenic Stockholm archipelago.
The ferry can operate in waves up to 2 meters (6.5 feet).
Candela envisions that, alongside Stockholm, cities like San Francisco, New York, and Venice will spearhead the movement towards electrifying waterborne public transportation.
Stockholm currently has about 70 public transport vessels that operate on fossil fuels. In 2022, there were approximately 6.2 million public transport boat trips in the Stockholm region, and while boat traffic constitutes a small portion of the overall public transit system, it is the fastest-growing mode of transport following the COVID-19 pandemic.
Numerous cities globally regard clean and effective public transportation as an essential method to reduce carbon emissions. For urban areas with waterways, a cutting-edge ferry in Sweden may soon establish a new benchmark.
Traveling through Stockholm’s archipelago, the new P-12 vessel from electric boat manufacturer Candela glides silently over the water at a height of about one meter (3 feet). Its creators aspire for this ferry, revealed this week, to initiate a new age of water-based public transportation.
“This represents a significant advancement,” stated Erik Eklund, who oversees Candela’s commercial vessel division. “The energy efficiency gained from flying on the foils provides us with the velocity and range required to operate on batteries.”
The vessel is engineered to transport 30 passengers, reaching a top speed of 30 knots (56 kph or 35 mph) — notably quicker than other electric ferries. It achieves this speed using carbon fiber hydrofoil wings that elevate the craft above the surface, minimizing drag.
According to Candela, this technology decreases the energy consumption per passenger-kilometer by 95% in comparison to the diesel ferries currently moving passengers across the beautiful Stockholm archipelago, which consists of countless islands and skerries extending into the Baltic Sea.
Additionally, the ferry is exempt from the 12-knot speed limit in Stockholm because it creates no wake — the waves caused by a boat moving through the water that intensify with speed and could potentially inundate other vessels or erode the shoreline.
The P-12 is still undergoing testing but is scheduled to begin operating in July on the route between the Stockholm suburb of Ekero and the city center as part of a nine-month trial project. This ferry will reduce travel time from Ekero via standard public transport from 55 minutes down to 25 minutes.
The company aims to utilize insights gained from the launch of its smaller electric hydrofoil recreational boat. Engineers onboard are refining the hydrofoils, which are adjusted by a computer 100 times every second to adapt to sea conditions and counter any wave impacts. The vessel can function in waves of up to two meters (6.5 feet).
Candela envisions that, alongside Stockholm, other cities like San Francisco, New York, and Venice will spearhead the transition to electrified marine public transport.
Gustav Hemming, Vice President of the Regional Executive Board in Stockholm, expressed support for this initiative.
“The goal is for the Stockholm region to enhance public transportation by water, as we believe it is a key factor in making public transit more appealing,” he remarked.
In 2022, there were approximately 6.2 million public transport boat trips in the Stockholm region; while boat traffic still represents a minor portion of the overall public transit system, it has become the fastest-growing form of public transportation post-COVID-19 pandemic.
“Our roads are often congested, and constructing new ones is quite costly and not very eco-friendly,” Hemming noted while gazing over Stockholm’s open waters on a chilly autumn day. “However, we have our established infrastructure here. There is no congestion on the water.”
Using hydrofoils to elevate a vessel above the water to reduce drag is not a novel concept. Ship designers have been exploring this technology for over a century, but high costs and maintenance challenges had hindered its widespread use. Nevertheless, the advent of lightweight carbon fiber materials has revived this technology in elite sailing, and with the efficiency of electric motors and the rising costs of traditional fuels, it is experiencing a resurgence in the public transport arena.
“We understand that marine vessels tend to be energy-intensive, and the restricted energy density of current batteries constrains the electrification of marine fleets,” stated Arash Eslamdoost, an associate professor of applied hydrodynamics at Chalmers University of Technology in Gothenburg. “This is where foiling presents a transformative solution to optimize the limited onboard electric power.”
Worldwide, several hydrofoil electric passenger ferries are either being designed or actively developed. In the U.K., Artemis Technologies has announced its intention to create a fully electric hydrofoil ferry to operate in Northern Ireland between Belfast and nearby Bangor, potentially launching as soon as next year.
Robin Cook from the Swedish Transport Agency noted that the maritime industry is poised for transformation, particularly in short-distance routes. However, he emphasized the need for public infrastructure to keep pace with these advancements and encourage them through incentives.
“A crucial element of electrification is when vessels connect to ports through onshore power supplies,” he commented. “In this regard, harbors play a vital role in ensuring that infrastructure is developed for these connections.”
The revolutionary ferry employs hydrofoil wings controlled by computers that elevate the hull above the water, leading to an 80% reduction in energy usage compared to traditional boats. “This represents a significant transformation for urban transportation and a rejuvenation of our waterways,” stated Gustav Hasselskog, CEO and founder of Candela.
Presently, Stockholm’s roughly 70 public transport vessels consume more fossil fuels than the city’s buses and trains combined. The new ferry tackles several challenges by running on 100% renewable electricity and producing minimal wake, enabling greater speeds within city boundaries.
Nova travels at 25 knots, making it the fastest electric ferry currently in service and beating the speeds of earlier diesel-powered boats. For Ekerö, the island suburb of Stockholm that is experiencing the most growth, this translates to a reduction in travel times from one hour to just 30 minutes. The ferry’s advanced technology features electric C-POD motors with no mechanical transmission, allowing for nearly silent operation even at top speeds. It also needs very little infrastructure, charging at a standard car fast charger during normal breaks.
The pilot initiative, executed by Candela, Trafikverket, and Region Stockholm, will run through the fall of 2024 and restart in spring 2025. Its objective is to showcase how hydrofoil technology can enhance maritime transit efficiency and environmental sustainability.
“In numerous cities, the quickest route is over water, which is humanity’s oldest infrastructure,” said Hasselskog. “Today, our waterways are not fully utilized because of high costs, concerns over wake, and the emissions associated with traditional vessels.”
The initiative has already attracted global interest, with Candela securing orders from Saudi Arabia, New Zealand, and Berlin prior to the official launch.
“This signifies a major change in urban transportation and a revival of our waterways,” commented Gustav Hasselskog, the founder and CEO of Candela, who united specialists in hydrodynamics, software, advanced computer simulations, and mechatronics in 2014 to revolutionize electric boating.
Last year, the company raised $20 million to scale up production of their ferries and water shuttles, followed by an additional €24.5 million in March 2024, which included funding from Groupe Beneteau, the largest boat manufacturer globally.
Half the commuting duration, with zero emissions Dateline: Tuesday, October 29, 2024, 07:15 CET. “Nova,” the inaugural vessel of Candela’s P-12 model, left its dock in Ekerö, the fastest-growing island suburb of Stockholm, and completed a 15 km journey to Stockholm’s City Hall in just over 30 minutes. That’s roughly half the time needed for the trip on a diesel-powered ferry. Half the time with zero carbon and toxic fume emissions.
This is achievable due to Candela’s technology, which enables the 12-passenger, 12-meter (≈ 40 ft) boat to fly a meter above the water’s surface, supported by computer-controlled hydrofoil wings that nearly eliminate water friction and decrease energy consumption by 80% compared to standard hulls.
Stockholm is located in an archipelago of 30,000 islands and has a substantial fleet of public transport vessels—about 70 in total—that utilize more fossil fuels than the city’s buses and trains combined, despite making up only a small percentage of overall transit usage. Water transport is expensive and time-consuming, as the vessels produce significant wakes, which restrict their speed in the city center.
Powered by 100% renewable electricity Since the P-12 glides above the water rather than forcing its way through like conventional vessels, it creates negligible wakes. Consequently, the ferry is permitted to operate at high speeds within city limits, where other vessels face wake restrictions.
Did we mention its quietness? Nova operates solely on renewable electricity and produces minimal noise even at high speeds, thanks to Candela-engineered electric C-POD motors with no mechanical transmission. The motors represent a notable advancement in electric boating, utilizing two motors and contra-rotating propellers housed in a torpedo-shaped casing to enhance efficiency further.
Electric hydrofoil ferries on the rise Several companies have developed hydrofoiling electric ferries and other commercial passenger ships, including MobyFly in Switzerland, Vessev in New Zealand, and Artemis Technologies in the UK. In the past year, Candela has received orders for the P-12 from Berlin, Saudi Arabia’s NEOM project, and an environmentally sensitive lake in New Zealand, with more clients expected to be announced.
Tuesday’s ‘flight’ represents the world’s first operational service for electric foiling ferries. For Stockholm—perhaps for the entire world—this indicates a future in which water transport in cities is sustainable, cost-effective, and faster than commuting by car.
Candela’s Hasselskog states, “In many cities, the most direct path is over water, which is humanity’s oldest infrastructure. Today, our waterways are underutilized due to high costs, wake-related concerns, and emissions from conventional vessels. If we can harness this potential, we can enhance the appeal of our cities.”
The Candela P-12 does not require expensive docking infrastructure. It can be charged at a standard car fast charger located at Stockholm City Hall. Its extensive range enables it to keep pace with traditional diesel ferries, allowing for recharging during the usual lunch break.
Nova will operate until the waters freeze in fall 2024, with services resuming in spring and continuing through August 2025. This route serves as a pilot initiative led by Candela, Trafikverket, and Region Stockholm (SL) to investigate how hydrofoil technology can facilitate quicker, more cost-effective, and emissions-free maritime travel, thereby creating new transit patterns in Stockholm.
Candela’s advancements in hydrofoiling are also applicable to leisure boats. Their first electric hydrofoiling vessel debuted in 2016, and the Candela C-8, which launched in 2022, has become one of Europe’s top-selling boats—regardless of propulsion—over the last few years.
A few weeks ago, the C-8 achieved a milestone by becoming the first all-electric boat to successfully cross the Baltic Sea.
From the outset, Candela’s primary goal has been “to accelerate the transition to fossil fuel-free lakes and oceans. By developing electric hydrofoil vessels that outperform fossil fuel alternatives, we’re leading the charge for zero-emission marine transportation.”
Discussing this significant advancement in waterborne public transport, Hasselskog states, “For the first time, we have a vessel that makes water transport more rapid, environmentally friendly, and cost-effective than land transportation. It heralds a new era for global waterways, and it’s thrilling that Stockholm is pioneering this change.”
Merging long-distance capability with high speed, the new Candela P-12 electric hydrofoiling water taxi takes the innovative technology from the striking Candela 7 leisure boat and adapts it for commercial operators in a vessel designed for 12 passengers.
The technology and software behind Candela’s hydrofoiling boats began development in 2014, created by a skilled team with expertise not only in boat design and hydrodynamics but also in fields like avionics, image and signal processing, dynamic modeling, control theory, and machine learning. They developed a unique flight controller/software/sensor system that collects information from the hydrofoil wings as the vessel moves and makes adjustments over a hundred times each second.
Hydrofoiling uses one-fifth the energy of traditional hulls
This leads to an exceptionally smooth experience, resembling flying more than boating, and the secret to achieving rapid movement through water over sustained periods is to elevate the vessel above it! The energy efficiency gained by minimizing hull drag through hydrofoil wings provides an unparalleled combination of speed and range.
This energy efficiency is what makes a hydrofoiling water taxi attractive to commercial operators. Candela has compared its new 8.5-meter P-12 against conventional fossil fuel water taxis across various criteria, revealing that the foiler requires only 44kW of power compared to 258kW for a similar non-hydrofoil hull. This results in significantly lower fuel expenses, especially when utilizing inexpensive electricity.
It’s well-known that the primary barrier for consumers considering an electric boat is the hefty initial cost of the battery. For commercial operators, however, the battery cost is less concerning. The more frequently the vessel is utilized, the quicker the return on that initial investment due to the lower ongoing fuel costs.
Candela estimates that operating a typical fossil fuel water taxi costs around €5 per hour (US$ 6.10), while the operating cost for a Candela P-12 is just one-fifth of that: €1 (US$ 1.22). If a boat operates with 12 paying customers for six hours a day, it quickly becomes evident how that cost difference can cover the battery expenses and subsequently contribute to profits.
Candela’s hydrofoiling water taxi is the company’s third model. Although Candela’s electric hydrofoiling provides an exciting and smooth experience (the P-12 can reach a maximum speed of 30 knots / 55 km/h), the main motivation behind developing the technology was different. The company’s primary goal “is to accelerate the shift to fossil fuel-free lakes and oceans. By developing electric hydrofoil boats that outperform fossil fuel alternatives, we’re making strides toward zero-emission marine transportation.”
Candela invested over 10,000 hours in simulations, design iterations, and sea tests to perfect its system, but a significant benefit is that they don’t need to redesign the hydrofoil for various boat sizes.
Launched in 2019, the Candela 7 recreational speedboat has garnered significant demand across Europe and North America. They announced in March their collaboration with Stockholm city to create a hydrofoiling ferry with a capacity for 30 passengers (the P-30), and now they have unveiled the hydrofoiling water taxi at the Salone Nautica in Venice, a location known for numerous commercial passenger vessels.
Typically, a personal speedboat, a 12-passenger taxi, and a 30-passenger ferry would necessitate completely different hull shapes and designs to optimize their movement through and performance on the water. However, this is not the case with hydrofoiling.
The P-12 hydrofoiling water taxi and the P-30 hydrofoiling ferry can be seen side by side. While there are variations in the size of motors and batteries needed for different Candela vessels, the core components—Candela wings, sensors, and stabilizing software—are fundamentally the same. The different hull dimensions and seating options are then customized and integrated. The P-12 shares various parts with its larger counterpart, the P-30, including the ‘climate shell’ passenger section offering 360º views.
Water taxis and small sightseeing vessels operate globally, transporting diverse groups of people to various destinations for a multitude of purposes, and an electric hydrofoiling model could enhance the experience in nearly all instances.
Where speed is a priority, the Candela P-12 delivers it—while producing less noise, minimal wake, zero emissions, and a smoother ride for passengers. During excursions in environmentally sensitive regions, the electric boat enables passengers to closely observe marine wildlife with minimal disruption to their habitat.
In the realm of electric vehicles, larger commercial units like buses, delivery trucks, and work vehicles are accelerating the transition from fossil fuels due to their significant economic advantages. The Candela P-12 provides similar advantages for commercial boats, making the shift from internal combustion engines to electric a straightforward choice, with no compromise between cost savings and environmental benefits.
Pioneering manufacturer Candela has successfully completed the largest funding round in its history, raising 25 million euros (approximately $27.13 million) to boost the production of its groundbreaking P-12 ferry.
Groupe Beneteau, the top boat manufacturer globally, is a key partner in this funding round. Their brand portfolio includes Jeanneau, Prestige, Lagoon, Wellcraft, Scarab, along with four brands already in the electric boating sector: Delphia, Four Winns, Excess Catamarans, and Beneteau itself.
Additional investors in this funding round include longstanding supporters EQT Ventures, the venture arm of Swedish firm EQT Partners; Kan Dela AB; and Ocean Zero LLC, which also funds seven other companies focused on reducing emissions in the marine industry, including ZEN Yachts and Flux Marine. This fresh capital injection brings Candela’s total funding since its inception to over €70 million (around $76 million).
Founded in 2014, Candela originated in Sweden when Gustav Hasselskog envisioned creating an electric boat that could match the range and speed of gasoline-powered vessels. He assembled a cutting-edge team with expertise across hydrodynamics, flight control electronics, structural composite engineering, and the software utilized for dynamic modeling.
They developed the first Candela hydrofoiling speedboat along with an onboard flight controller that collects real-time data from sensors located around the boat and adjusts the foils over 100 times each second to counteract wave and water movements.
While experiencing hydrofoiling in a recreational vessel like the Candela 8 is certainly extraordinary and thrilling, the more significant environmental impact will arise from Candela’s fleets of water taxis and larger ferries. In Europe, ferries contribute to 10% of CO2 emissions from all shipping vessels.
Candela’s boats are designed to consume 80% less energy compared to others due to their nearly negligible water resistance and friction. This technology reduces lifetime emissions by 97.5% when contrasted with diesel-powered vessels, all while allowing operators to cut their costs by half. Since it produces minimal wake, the P-12 has received exemptions from speed regulations. In Stockholm, it will reduce travel times to half of what they are with traditional road transport and older diesel-burning boats.
The electric vessel market is projected to reach a value of 14.2 Billion USD by 2030, as reported by Fortune Business Insights, fueled by strong governmental incentives aimed at decarbonizing shipping.
Bruno Thivoyon, CEO of Groupe Beneteau, stated, “Our investment aligns perfectly with Groupe Beneteau‘s sustainability objectives, enhancing innovative solutions for more eco-friendly boating and exceptional experiences. Candela’s technology, which allows for significantly more efficient electric vessels, will revolutionize waterborne transport in its next sustainable phase.”
Groupe Beneteau stands as the largest boat manufacturer globally, boasting a turnover of €1.46 billion, with 15 factories, 9 distinct brands, and over 8,000 yachts produced each year.
In 2021, they announced their own ventures into electric recreational boating during the Cannes Yachting Festival, introducing Delphia as their dedicated electric brand. The inaugural Delphia 11 cruising boat was launched in Europe in 2022, and another brand, Four Winns, unveiled the electric H2E sportboat in 2023.
“Charting the path toward a brighter future,” said Candela founder Hasselskog. “We are thrilled to have Groupe Beneteau on our team. As the leading global boat manufacturer, their endorsement is a strong confirmation of our technology’s capability to transform waterborne transportation. We are eagerly looking forward to the opportunities that lie ahead.”
He also expressed this sentiment to those who have supported Candela from the outset:
Today, we revealed our latest funding round of €25 million – the most substantial in Candela’s history.
We wouldn’t have achieved this milestone without you – our remarkable customers, investors, and partners. Our talented team has dedicated countless hours to develop our innovative electric hydrofoil vessels from a mere concept to prototypes, and then to best-sellers in the electric leisure sector, now expanding into the commercial passenger transport arena with the Candela P-12.
This funding round also signifies a new pinnacle as we welcome Groupe Beneteau as investors. Having the largest boat manufacturer in the world on board serves as a significant endorsement of the transformative potential our technology holds for global waterborne transportation.
Waking up to this news feels surreal; I often need to pinch myself to believe that my nearly 10-year-old aspiration of creating the first practical, long-range electric boat has materialized. We’re now positioned to guide the future, charting a course toward a more sustainable tomorrow.
A sincere THANK YOU goes out to everyone who believed in this vision and joined us on this incredible journey. Stay tuned for what lies ahead—we’re only just beginning!
Denison is the US company uniquely positioned to take on the Candela 7, as both firms were established by visionaries motivated by the thrill of innovating and seizing overlooked opportunities.
Frank Denison began his journey by mending and reselling boats purchased on speculation, and is recognized for being the first to install diesel engines in a yacht during the mid-1930s. His grandson Bob, who currently leads Denison and transitioned the company to a yacht brokerage in 2009, describes Frank as “an incredible boat builder” who also introduced the first turbine-powered yacht in 1973. Frank’s wife, ‘Kit’ Denison, created the first ‘country kitchen’ galley for yachts in the 1980s.
Gustav Hasselskog, a pioneer in electric boating at Candela, expresses his ambition to “revolutionize the industry – eliminating reliance on fossil fuels in boating.” After exploring the various possibilities within electric boating and examining the engineering and physics of the challenge, he concluded that the most effective way to demonstrate the advantages of electric boats was to design one that could fly. He assembled a team of specialists in flight control electronics, software algorithms, hydrodynamics, and structural composite engineering to achieve this.
While there are many excellent electric boats that plane on the water in the conventional manner and offer outstanding environmental performance using electric motors instead of gasoline, Haaselskog chose a different strategy by pursuing hydrofoiling due to a significant reason: water has a higher density than air. Regardless of how light a hull is made or how aerodynamic its shape is optimized, substantial energy is required to overcome the drag and friction of a boat hull moving through water. Candela’s research demonstrated that “a 7.5 meter (24 ft) planing boat consumes 12-18 times more fuel than a family car.”
Hydrofoiling is not a novel concept; in fact, the earliest evidence of hydrofoils on vessels appears in a British patent awarded to Emmanuel Denis Farcot in 1869, and military boats have utilized them since World War II. The principle remains unchanged: a boat reaches a certain speed at which it lifts out of the water, riding on a slightly submerged T or V-shaped wing, resulting in minimal drag and resistance.
Candela has elevated the concept to an entirely new level suited for the 21st century, made possible by their diverse team of experts. Weight is clearly a crucial element in hydrofoiling; thus, the hull, deck, and all deck components of a Candela 7 are constructed from carbon fiber, showcasing the structural composite engineering aspect.
The expertise in flight control electronics and software management has been integrated into the hydrofoil design. Unlike traditional hydrofoils that are static, the Candela adjusts dynamically in electric flying boat mode, as seven sensors continuously gather data on the boat’s position, velocity, and acceleration across the x, y, and z axes, along with its rotational movement. This information is relayed to the flight control software, which constantly adjusts the wings to maintain optimal height, roll, and pitch.
You may wonder what occurs with the foils in shallow water. The foils are designed to retract completely into the hull, and the motor can be tilted upwards, resulting in a draft of merely 0.4 meters / 1 foot 3 inches.
Another question might pertain to the boat’s performance in choppy water conditions. A video shared by Candela on its Facebook page demonstrates its impressive capabilities. It showcases the boat on April 6, paired with the commentary: “From last week’s storm over Stockholm. Rough weather sea trials and comparing the Candela Seven against a 9 meter RIB!”
Unsurprisingly, such remarkable innovation has garnered Candela several prestigious accolades: it was nominated for European Powerboat of the Year, won ‘Best for Future’ at the Best of Boat Awards, and earned the title of ‘Best Foiling Boat’ (being the only electric model) at Foiling Week.
However, the most rewarding recognition may reside in the testimonials from the first buyers highlighted on the Candela website:
“With six people on board, we usually operate at nearly full speed, around 30 knots, and complete the journey from Stockholm to our summer house in just over an hour. Even with all the passengers and gear, we consistently arrive with ample battery capacity remaining.”
Candela’s electric foiling vessel has successfully competed against fossil fuel boats once more, earning the Foiling Motor Boat Award at the recent Foiling Week awards.
Foiling Week, held in Milan this week, celebrates various types of foiling boats and is the only worldwide event focused on “the incredibly fast foiling boats, along with their sailors, designers, and builders.” One of the main sponsors of Foiling Week is Torqeedo, and the award for Candela was presented by Oliver Glück, Torqeedo’s Vice President of Marketing (Left, above).
Candela is certainly in a strong position, having secured the Best of Boat Award in November and also receiving a nomination for the European Powerboat of the Year at BOOT Dusseldorf.
“We’re doing this to lead the green transition at sea,” Gustav Hemming, the city councilor responsible for climate and infrastructure, stated to reporters. The goal of the nine-month pilot project was to “encourage more people to leave their cars behind and opt for a (public transit) card instead.”
Candela’s CEO, Gustav Hasselkrog, was clear in expressing the rationale for shifting away from internal combustion engine (ICE)-powered ferries.
“Traditional ships have seen little evolution over the past century and rank among the least energy-efficient transport options, only competing with a battle tank,” Hasselkrog remarked.
As per Storstockholms Lokaltrafik, boat travel is the fastest-growing mode of public transit in the city, with approximately 6.2 million boat trips recorded in 2022, and the transit agency is considering adding more ferries like the P-12.
The P-12 ferry was “engineered with both passengers and environmental considerations in mind,” Hasselkrog noted, stating that it provides “a highly enjoyable experience without imposing environmental burdens such as wakes, emissions, and noise.”
A life-cycle assessment conducted at the Kungliga Tekniska högskolan, or the Royal Institute of Technology, in Stockholm, titled “Electric Hydrofoil Boats Beat Diesel Boats for Climate Sustainability,” indicates that a Candela P-12 has the potential to produce 97.5% less CO2 throughout its lifespan than a conventional diesel vessel of similar size.
In September, a Candela crew achieved a world record by navigating a hydrofoiling Candela C-8 from Stockholm to the Finnish autonomous region of Åsland. This journey marked the first instance of an electric boat crossing the Baltic Sea.
“Our objective was to showcase that zero-emission marine travel is achievable today, and that foiling electric vessels are significantly more economical to operate than fossil-fueled boats,” Hasselkrog stated.
There were moments of range anxiety during the journey, but it did not stem from the C-8. “The irony is that the photographer’s gasoline-powered chase boat needed to refuel six times during the journey [to Åland and back], while we only needed to charge three times,” Hasselkrog explained.
The round-trip crossing of the Baltic Sea primarily utilized the existing charging infrastructure and received assistance from Empower, a charging solutions provider based in Finland. The voyage began in Frihamn, a Malmö neighborhood, and proceeded to Kapellskär, a port city located 60 miles (90 km) north of Stockholm, where the C-8 was recharged using a 40-kW Kempower wheeled charger linked to the harbor’s power grid. In Mariehamn, the boat was connected to the marina’s three-phase outlet for charging. On the same day at 6 pm, the C-8 team left Åsland, navigating the boat back toward Sweden and stopping again to recharge in Kapellskär. The journey continued despite heavy fog, arriving in Frihamn at 11:30 pm.
In 2014, our founder Gustav gathered a team of specialists in composite engineering, flight control electronics, hydrodynamics, dynamic modeling, and drone control systems. The goal was to discover methods for creating electric boats that could successfully combine both speed and range.
Positioned to transform maritime travel, our hydrofoiling electric boats – the result of over 10,000 hours of committed research and sea trials in Lidingö, Stockholm – effortlessly glide across the surface of the water. By merging state-of-the-art electric propulsion with active stabilization, they set new standards for speed, efficiency, and durability.
Electric ferries are revolutionizing the maritime sector by replacing traditional diesel engines with cleaner, battery-operated options. These vessels promise decreased emissions, lower operating costs, and quieter journeys.
The maritime transport industry, which has historically depended on reliable yet environmentally damaging combustion engine ferries, is at a crucial turning point. As the industry responds to the demand for sustainability, electric vessels are emerging as viable alternatives.
Setting global benchmarks, from the busy ports of Washington State to the beautiful coastlines of Scandinavia, these ferries not only cut emissions but also redefine waterborne public transit for the 21st century.
The transition towards battery-powered ferries is motivated by the complications presented by conventional vessels. Diesel engines, which have long powered ferry services, are infamous for their considerable greenhouse gas emissions, including CO2, methane, and nitrous oxide. These emissions contribute to global warming and local air pollution, with nitrogen and sulfur oxides posing serious risks to human health.
Additionally, the inefficiency of traditional engines results in high fuel consumption and operational expenses. The challenges of emission control add further complexity, often necessitating the use of advanced after-treatment technologies to comply with regulations. Consequently, existing passenger boats face an increasing demand for newer, cleaner, and more economical alternatives that satisfy the requirements of modern transportation and transit systems.
In light of the maritime industry’s challenges, electric propulsion in marine vessels emerges as a promising innovation. The benefits are numerous. Electric ferries incur lower operational and maintenance costs due to simpler motor designs and lesser mechanical wear. These savings create a positive ripple effect across the entire fleet, as electric boats demand less frequent and less expensive maintenance than their combustion engine equivalents.
Another benefit is the quietness that electric propulsion brings to the marine setting. These vessels move through the water almost silently, in stark contrast to the loud diesel engines. This diminishes noise pollution and improves the traveling experience. Furthermore, the built-in redundancy within electric systems provides a layer of reliability, ensuring that boats stay operational even if one part of the system encounters a failure.
Electric ferries offer clear environmental gains, as evident as the clear waters they aim to protect. By transitioning to electric propulsion, passenger boats can considerably lower emissions of harmful gases such as NOx and CO, along with CO2 and soot, making a significant environmental impact.
Take the Puget Sound, where the electric ferry emitted just 25% of the exhaust of its diesel-powered equivalent. In areas with clean electricity grids, electric passenger vessels can reduce greenhouse gas emissions compared to diesel engines significantly. This underscores the substantial environmental advantages these vessels can provide.
Moreover, by minimizing the need for commuter vehicles on shorter routes, electric ferries help to alleviate traffic congestion and its related environmental effects.
While the environmental advantages are a key attraction, the cost-effectiveness and economic benefits of electric ferries are equally persuasive. For instance, an all-electric catamaran operates across the water at a 21% lower energy unit cost than a traditional diesel ferry. This trend isn’t isolated; throughout much of Europe, electric passenger vessels have shown significantly reduced operational costs compared to their diesel counterparts. Although the initial purchase cost of a battery-powered ferry may be higher, the long-term savings in operation and maintenance are evident.
Battery power and energy efficiency in electric ferries form the foundation of their operation, serving as both an energy source and a representation of energy efficiency. Lithium-ion batteries are commonly used due to their capacity to efficiently store and provide large quantities of electricity. Lithium iron phosphate batteries are becoming increasingly popular in maritime uses because of their safety and durability. This indicates a transition towards more robust and dependable power sources for battery-powered boats.
The management of these energy sources is directed by advanced Battery Management Systems (BMS), which guarantee optimal efficiency, safety, and durability of the batteries. Enhancements in quick recharging capabilities are revolutionary. They will allow battery-operated ferries to stay ready for operation and broaden their journeys beyond previously assumed limits.
To grasp the capabilities and limitations of an electric ferry, one must consider its range. Although these ferries generally have a shorter distance capacity than those powered by combustion engines, improvements in battery storage are continuously pushing their limits. Small (though slower) electric ferries, often observed moving through harbors or on short routes, usually cover ranges of 5 to 30 nautical miles. These are backed by battery capacities of 1 to 2 MWh, making them well-suited for frequent docking and charging opportunities.
For medium and larger vessels (also primarily slow-moving), such as those linking islands or serving longer routes, ranges can vary from 20 to over 100 nautical miles. These vessels typically boast battery capacities ranging from 2 MWh to more than 10 MWh.
In contrast, the fast-moving Candela P-12 electric hydrofoil ferry can reach a distance of up to 50 nautical miles at a cruising speed of 25 knots. This highlights the remarkable potential of contemporary ferry technology. By raising its hull out of the water, the P-12 uses its energy for forward propulsion instead of pushing through water, enhancing energy efficiency by over 80% compared to non-foiling vessels.
Despite the increasing drive to electrify ferry fleets, significant challenges persist. A major obstacle is the establishment of reliable charging infrastructure at ports, which is essential for the seamless operation of battery-powered ferries. The charging arrangements can vary from basic household circuits to more intricate fast chargers. Furthermore, access to clean energy and a robust grid is crucial to support the expanding fleet of electric vessels.
Ports and docks often have limited electrical capacity, particularly in isolated island communities. This creates a notable challenge for the broad adoption of electric passenger vessels. Additionally, achieving the right balance between battery size and vessel weight is vital to uphold efficiency and performance. However, potential solutions are emerging, including the development of more robust grids, hybrid systems, and innovative battery technologies. Together, these developments are facilitating a smoother transition to electric fleets. Nonetheless, the more energy-efficient a vessel is, using kilowatt-hour (kWh) batteries instead of megawatt-hour (MWh) batteries, the simpler electrification becomes.
A further substantial challenge is the high initial cost of electric ferries and the necessary infrastructure enhancements. While long-term savings on fuel and maintenance are significant, the upfront expenditure can be intimidating for many operators. Government incentives and subsidies can significantly help mitigate these costs and promote the uptake of electric ferries. Additionally, the maritime transportation sector is witnessing partnerships between the public and private sectors. These collaborations are financing research and development in electric propulsion technologies. Such collaborations are important for accelerating innovation, lowering costs, and creating a sustainable path for ferry fleet electrification.
With every new vessel entering the market, the water transportation sector advances toward a sustainable future. Norway’s MV Ampere, a trailblazer in battery-powered ferries, commenced its journey in 2015. It set a benchmark for following electric ferry initiatives throughout the country. Meanwhile, Wightlink in the United Kingdom is preparing to launch the Solent’s first entirely electric freight and passenger ferry within the next five years.
These advancements signify the latest progress in maritime technology, with ferries like the Candela P-12 Shuttle at the forefront. As these vessels become part of the fleet, they extend the possibilities of ferry services. They also demonstrate a commitment from the maritime industry to shift toward a cleaner, more cost-effective future.
Candela P-12 Shuttle electric hydrofoil ferry
In a time when environmental sustainability and cost-effectiveness are crucial, our Candela P-12 Shuttle stands out as the first electric hydrofoil ferry globally, poised to transform maritime transport.
Traditional ferries find themselves trapped in an unending cycle of inefficiency that adversely affects both operational costs and their environmental footprint. Excessive fuel consumption results in heightened operational expenses and increased ticket prices, discouraging passenger usage and leading to reduced revenue. This situation is worsened by the maintenance costs linked to complicated combustion engines and the ecological damage caused by carbon emissions. Consequently, operators frequently remain caught in a cycle of elevated costs and meager returns, trying to reconcile sustainability and profitability.
The Candela P-12 Shuttle presents an innovative answer to these problems. As an electric hydrofoil ferry, the P-12 Shuttle merges the advantages of electric power with hydrofoil technology. Hydrofoils elevate the hull above the water, which significantly minimizes drag. This enables the P-12 Shuttle to glide effortlessly and efficiently, cutting energy usage by up to 80% compared to conventional ferries. This leads to decreased operational costs and a substantial reduction in greenhouse gas emissions.
The propulsion system of the P-12 completely eliminates reliance on fossil fuels. This drastically lowers fuel expenses and diminishes the carbon footprint associated with ferry operations. The P-12 has the capability to traverse longer distances on a single charge, alleviating range issues that typically constrain electric passenger vessels. Moreover, the reduced drag and diminished wear on components result in lower maintenance costs and an extended operational lifespan. Therefore, the P-12 serves as both an eco-friendly and economically viable option for ferry operators.
Passengers on the P-12 Shuttle can experience a quieter and smoother journey, free from the noise and vibrations typically associated with traditional combustion engines. The innovative design of the ferry also allows for increased speeds and reduced travel times, making it a more appealing choice for both commuters and travelers.
Life Cycle Assessment: Electric hydrofoil boats vs. fossil-fuel alternatives
Life cycle assessments indicate that electric hydrofoil boats have a considerably lower environmental footprint compared to fossil-fuel alternatives. A study by KTH Royal Institute of Technology in Sweden confirms these benefits, showing significant cuts in CO2 emissions. Dennis Olson and Felix Gluunsinger from KTH discovered that the electric hydrofoil leisure craft, Candela C-8, had a markedly lower environmental impact regarding Global Warming Potential and Cumulative Energy Demand compared to its petrol-powered equivalents. They also compared the Candela P-12 with diesel ferries used in Stockholm’s public transport and found that the electric version could decrease environmental impact by 1,670 tons of CO2-equivalent annually.
These results highlight the considerable benefits that electric hydrofoil boats provide over conventional marine vessels. By focusing on electric propulsion, marine operators can greatly lessen their environmental impact. This strategy paves the way toward a cleaner and greener future for maritime transportation.
The future of electric ferries: Innovations and prospects
The maritime sector is navigating towards a future defined by innovation and sustainability. The potential for electric ferries is vast. For instance, Stena Line’s next-generation E-flexer vessels will be dual-fuel methanol hybrids, demonstrating the industry’s flexibility and dedication to lowering emissions. Concurrently, San Francisco is set to introduce the country’s first high-speed, high-capacity zero-emission ferry service, establishing a new benchmark for urban transport.
The creation of hybrid vessels by companies such as Brittany Ferries and Isle of Man Steam Packet Company showcases various methods of electrification. These advancements indicate a future in which battery-powered ferries will be crucial in the global movement for zero-emission maritime operations.
Conclusion
Electric ferries mark a significant transformation in maritime transport, resulting in lower environmental impacts and operational expenses. With continued progress in battery technology and charging infrastructure, these vessels are expected to become more feasible, making them an attractive option for both ferry operators and passengers.
Frequently Asked Questions
Are electric ferries more costly to operate than diesel ferries?
No, they are usually less expensive to operate due to lower energy consumption, decreased maintenance needs, and possible government subsidies.
How do electric ferries affect local communities and ports?
Electric ferries can benefit local communities and ports by diminishing air and noise pollution, enhancing quality of life, and improving the passenger experience.
What type of battery technology is utilized in electric ferries?
Electric ferries typically employ lithium-ion and lithium iron phosphate batteries for their high energy density, efficiency, and safety, managed by advanced systems for peak performance.
What developments are underway to expand the range of electric ferries?
Improvements in battery storage, efficiency, and rapid charging facilities at ports are enhancing the operational range of electric ferries. Additionally, hybrid systems with supplementary power sources are being examined for increased range and flexibility.
How do electric ferries contribute to lowering greenhouse gas emissions?
The environmental benefit is largely contingent upon how renewable the electricity grid is. Sweden relies heavily on renewables for electricity, though this isn’t universally true. Regardless, electric ferries produce no exhaust emissions locally, thus eliminating harmful outputs typically related to diesel engines.
Can electric ferries cover as much distance as diesel-powered ferries before needing to recharge?
Though electric ferries generally have a shorter range compared to diesel ferries, advancements in battery technology are gradually extending travel distances, and fast-charging infrastructure is being developed for quicker charging.
What are the primary obstacles to the widespread adoption of electric ferries?
High initial costs and the lack of fast-charging infrastructure represent significant hurdles for the expansion of the electric ferry market. Additionally, range limitations compared to traditional ferries pose challenges for commercial viability.
What are the key factors propelling the adoption of electric ferries?
Government initiatives and subsidies are critical drivers behind the adoption of electric ferries, facilitating the shift towards more sustainable maritime transportation solutions.
For a lot of car purchasers, hybrids appear to be a good middle ground between gasoline and electric vehicles. Hybrids, which combine gasoline engines with electric motors, generate less pollution and consume less fuel compared to traditional cars. Additionally, drivers never need to fret about depleting battery power on a deserted highway.
However, while hybrids can save some individuals money, that isn’t universally true. Numerous experts and environmental organizations criticize hybrids, arguing that the financial savings are overstated and that they do not sufficiently reduce greenhouse gas emissions to help mitigate global warming.
Nonetheless, many car buyers seem convinced of their advantages. Hybrid car sales in the U.S. rose by 33 percent from January to July compared to last year, representing 11 percent of new car sales, according to government figures.
Here’s what to consider if you’re shopping for a car.
Not all hybrids are the same
There are two primary types of hybrids: conventional and plug-in. Conventional hybrids include systems that recover some energy from braking to charge a battery. The stored energy then powers an electric motor that supports the gasoline engine.
This arrangement helps to offset the inherent inefficiency of gasoline engines. A gasoline vehicle generally converts less than one-third of the energy in a gallon of gas into movement. Much of the energy is lost through the brakes, which transform motion into heat.
By recapturing some of that wasted energy to recharge a battery, the base model of the Toyota Prius, for example, achieves an estimated 57 miles per gallon according to the Environmental Protection Agency.
Nevertheless, conventional hybrids still consume gasoline. This means they contribute to climate change and produce harmful air pollutants. Essentially, they are just more efficient gasoline-powered vehicles.
‘Go a month’ without filling up
Plug-in hybrids boast larger batteries that allow cars to run solely on electricity for limited distances. They can be plugged into the same charging stations as electric vehicles and standard electrical outlets.
The plug-in version of the Toyota RAV4 SUV can travel around 40 miles on battery power alone, which exceeds the average daily distance most Americans drive. A gasoline engine engages when the battery is exhausted. In theory, owners of plug-in hybrids don’t need to refuel unless they are embarking on a long road trip.
“You could go a month without putting any gas in your vehicle,” stated Jack Hollis, the chief operating officer of Toyota Motor North America. “On your weekends,” he added, “when you’re looking to escape and want to travel two, three, or four hundred miles, having that plug-in hybrid is really beneficial.”
Mr. Hollis also pointed out that hybrids are typically more budget-friendly than entirely electric vehicles. They often cost only a few hundred dollars more than their gasoline counterparts. Electric vehicles generally come with a price tag that is several thousand dollars higher.
Several plug-in hybrids, such as certain models of the Jeep Wrangler and Ford Escape, are eligible for federal tax credits of up to $3,750, which contributes to possible savings on fuel expenditures. (No Toyotas qualify because they have too many imported parts.)
Superior to fully electric?
While hybrids are less harmful to the environment than gasoline vehicles, fully electric cars serve as a much more potent ally in the fight against climate change, according to Peter Slowik, who specializes in passenger cars at the International Council on Clean Transportation, a nonprofit research and advocacy organization.
“There is no realistic path to achieving our climate objectives with any vehicles that burn fossil fuels,” Mr. Slowik commented.
A plug-in hybrid emits twice the greenhouse gas emissions of a fully electric vehicle over its lifetime, according to research by the council that considers emissions from production and from recycling batteries once a vehicle reaches the end of its lifespan.
Another potential disadvantage of plug-in hybrids is their complexity, which can increase maintenance expenses. Plug-in hybrids comprise more moving parts that may malfunction. Unlike electric vehicles, both types of hybrids require regular oil changes. Generally, both hybrids and electric vehicles tend to have higher insurance costs than gasoline-powered cars.
That said, hybrids are generally dependable because they typically come from manufacturers like Toyota or Honda, known for their reliable products, as pointed out by Keith Barry, a senior writer at Consumer Reports who covers the automotive sector. “The manufacturers that make hybrids tend to be the most reliable overall,” he noted.
It’s crucial to understand that plug-in hybrids provide minimal benefits if their owners neglect to keep them charged. According to a report by the International Council on Clean Transportation, many users do not charge them regularly.
Owners of plug-in hybrids with a range of 40 miles typically utilized only 45 percent battery power, significantly less than the assumptions made by the Environmental Protection Agency when estimating fuel economy. The study, which examined millions of miles of vehicle data, showed that real fuel consumption could be up to two-thirds higher than the E.P.A. predictions.
To sum up, Mr. Barry emphasized that plug-in hybrids can be both environmentally and financially advantageous for individuals who can charge at home or at work. The decision hinges on factors such as driving frequency, electricity costs, and the price range being considered.
If you’re considering a smaller vehicle, “a hybrid is likely the better choice,” he noted. This is because there are still relatively few affordable small electric vehicle options available. However, Mr. Barry mentioned, “if you’re exploring a luxury or sporty car, typically, the electric version will save you some money.”
The case for hybrids is likely to weaken in the coming years. The cost of fully electric vehicles is dropping quickly, and there is an increasing variety of models available. Public charging stations are becoming more widespread, advancements in technology are decreasing charging times, and vehicles capable of traveling over 300 miles on a single charge are becoming the norm.
The fully electric variant of General Motors’ Chevrolet Equinox, which has just begun to reach dealerships, starts at $27,500 after factoring in a federal tax credit. The Equinox, which can exceed 300 miles on one charge, is the first in a series of affordable electric vehicles expected in the coming years, potentially making hybrids and gasoline vehicles less appealing price-wise, not to mention the fuel savings. In contrast, a Toyota RAV4 plug-in begins at $43,700.
“For some people, plug-in hybrids can serve as a good transitional option, especially for those traveling long distances without charging access,” said Katherine Garcia, director of the Clean Transportation for All Campaign at the Sierra Club. “However, our goal is to inform people that, given the climate crisis, we really need to move away from fossil fuels.”
Various new and expanding options are available at car dealerships regarding hybrid and electric vehicles, but recent decisions from major automakers indicate a shift towards more hybrids rather than EVs. Ford recently announced a delay in its electric pickup and is currently focusing more on its North American hybrid lineup.
The notion of “EV enthusiasm has waned,” with the idea of “consumer choice” becoming prominent again among automakers like Ford, General Motors, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin, all of which are revising or postponing their electric vehicle plans. GM’s EV sales remained minimal during the most recent quarter.
A Gallup poll released on Monday found that only 44% of U.S. adults are “seriously considering or might consider” purchasing an EV, down from 55% in 2023. The percentage of people not intending to buy an EV has risen from 41% to 48%.
However, determining the best value can be quite complex. These choices often depend on various elements such as initial cost, driving patterns, how long you intend to keep the car, anticipated ongoing expenses, and even your geographical location.
The solution isn’t always clear, even with headlines favoring hybrids. Here are some insights to assist car buyers in making the right choice.
Assess your driving habits
Before you begin comparing expenses, it is logical to evaluate how you will use the vehicle.
Are you merely commuting five or ten miles daily for work, or are you planning long road trips? If you frequently drive long distances, consider the availability of fast-charging stations along your route. If fast-charging stations are rare, as they are in many regions, a hybrid might be more beneficial where you can conveniently refuel at a gas station, according to Sandeep Rao, lead researcher for Leverage Shares, which provides investment funds focused on stocks of both EV and traditional automakers.
The federal initiative aimed at developing a comprehensive charging network across the U.S. has yet to be fully realized. Currently, efforts have concentrated on specific regions like California, the New York tri-state area, Florida, and Texas, while the vast majority of people live in the areas in between. “Most Americans lack access to EVs due to insufficient charging infrastructure,” Rao explained.
He also recommended considering how long you plan to own the vehicle, potential maintenance needs, and what nearby service options are available. Other elements to take into account include your home setup. Do you possess the appropriate conditions for convenient and quick EV charging? What are the upfront costs for upgrading your system to enable faster charging?
Evaluate the initial investment, EV vs. hybrid
If you’re still uncertain between an EV and a hybrid, the next step is to evaluate upfront expenses.
The mean price for the top ten best-selling electric vehicles in the U.S. stands at approximately $53,758, with an average of $48,430 for the entry-level versions of each model and $64,936 for the premium versions, as reported by Find My Electric, an independent EV marketplace. These ten EVs have price points that span from $26,599 for the Chevrolet Bolt EV to $99,000 for the highest-priced variant of the Rivian R1S.
In comparison, the average starting price for hybrid vehicles is $33,214 according to iSeeCars.com, a vehicle search platform. If you have particular models in mind, the Department of Energy provides a tool that allows you to compare up to four vehicles at once. You can also evaluate different models based on their fuel efficiency.
Look into potential auto rebates and incentives
If you’re favoring an EV but are still concerned about the initial price, explore available rebates. There are federal subsidies available — up to a maximum of $7,500 — but qualifying for these is becoming increasingly challenging as more manufacturers become ineligible.
Additionally, investigate state and local incentives. Buyers can check the Electric for All website, curated by Veloz, a nonprofit organization, to find incentives like vehicle tax credits and rebates, charging rebates, local utility incentive programs, and other special benefits for choosing electric.
“Depending on your location, you may be able to purchase an EV at a price point comparable to that of a hybrid or internal combustion vehicle,” stated Steve Christensen, executive director of the Responsible Battery Coalition, a nonprofit group dedicated to the responsible management of batteries.
Consider a plug-in hybrid
Another option worth considering is a plug-in hybrid electric vehicle, which can be an appealing choice for individuals transitioning from gas or diesel vehicles to battery-powered options.
The primary distinctions between full hybrids and plug-in hybrids involve the size, cost, and functionality of their electric batteries, as explained in an online Q&A from Progressive Casualty Insurance Company. Moreover, a plug-in hybrid can be charged at home or at public charging stations, while a full hybrid recharges its battery using its gasoline engine.
If you’re contemplating a plug-in hybrid, the Department of Energy offers a calculator that can help you estimate personalized fuel consumption and expenses based on your driving habits, fuel prices, and charging times.
Emphasize the total cost of ownership, not just initial expenses
Typically, the initial costs associated with EVs tend to be higher; however, it might be more advantageous in the long run.
For instance, smaller EVs, such as compact cars or sedans with a range of roughly 200 miles, can reach a break-even point with similarly sized traditional hybrids in five years or less, according to a recent study from the University of Michigan. Notably, this is without considering any incentives, as noted by Maxwell Woody, a PhD candidate at the University of Michigan and lead author of the research.
On the other hand, larger vehicles, including midsize SUVs and pickup trucks with an extended range of up to 400 miles, do not achieve break-even points with hybrids, even with incentives factored in, according to the study. It’s significant to mention that this data is based on historical battery prices, which have seen a significant decline in recent years and are projected to continue decreasing, suggesting that electric vehicles will generally perform better soon, Woody stated.
Calculating expenses for a plug-in hybrid is more complex since operational costs can vary significantly based on how often you charge versus fill up with gas. If you use it exclusively on electricity for urban travel, for instance, your costs could closely resemble those of an EV, Woody remarked. In contrast, during long trips, the expenses for refueling might align more closely with those of a gasoline vehicle, he added.
When assessing the overall cost of ownership, it’s essential to account for maintenance expenses, advised Albert Gore, executive director of ZETA, an industry-supported coalition advocating for full EV adoption. He references a study from Argonne National Lab indicating that maintenance costs per mile are considerably lower for an EV compared to traditional hybrids or plug-in hybrids.
Additionally, ensure you are making direct comparisons in terms of features, model, year, quality, and intended use cases, Woody emphasized. For instance, someone evaluating a Nissan Leaf, which is fully electric, might consider comparable data for a Honda Civic hybrid, he noted.
What distinguishes hybrid cars from fully electric cars?
As fuel prices seem to keep rising, having a fuel-efficient vehicle has become essential for many people in New Zealand. Therefore, it’s logical to explore options like hybrids and electric vehicles, alongside more traditional choices. To ensure that you choose the vehicle that best suits your family’s needs, it’s important to grasp the distinctions between hybrids and battery electric vehicles.
Hybrid cars utilize an electric motor to accelerate and travel at speeds up to about 25 km/h. As your speed increases, the petrol engine activates, and when you decelerate or brake, the energy is captured in the battery for future use. Hybrid vehicles do not require plugging in to recharge the battery.
In contrast, electric cars (BEVs) operate without petrol, produce no exhaust emissions, lack a clutch or gears, have fewer moving components, need less maintenance, and are extremely quiet. They function entirely on one or more electric motors and must be charged by plugging them in, either at home or at a public charging station. The downside is that they usually offer a shorter driving range compared to hybrid cars; however, it’s easy to stop and recharge the battery during your drive.
There is also a third option: plug-in hybrid electric vehicles (PHEVs), which are hybrids that can also be recharged by plugging in. These vehicles provide more electric driving range than standard hybrids, as well as the convenience of a petrol engine that activates when necessary or once the electric battery is drained.
Who are hybrid cars most suitable for?
Hybrid vehicles are highly fuel-efficient and inexpensive to operate compared to their petrol-fueled counterparts, which is why cars like the Toyota Corolla Hybrid and Toyota Camry Hybrid are very popular among urban dwellers. The ongoing low-speed, stop-and-go driving conditions typical of city commuting are where hybrids excel.
When driving at slower speeds or crawling in heavy traffic, hybrids utilize electric power, avoiding the consumption of petrol. Hybrid vehicles also perform well on highways or motorways, as they often incorporate Atkinson cycle engines supported by electric motors.
Hybrids are ideal for individuals seeking a dependable vehicle that generates less pollution than petrol or diesel options and who frequently drive in urban environments. They cater to those who prefer not to plug in their vehicle or experience range anxiety. Additionally, they can be more affordable than PHEVs or BEVs.
Who are plug-in hybrid electric vehicles (PHEVs) best suited for?
PHEVs occupy a middle ground between hybrids and EVs, providing drivers with the advantages of both types. Equipped with both electric motors and a petrol engine, they can also be plugged in. They are suitable for individuals who want to minimize fuel use on short trips but still desire the option of a traditional vehicle for longer journeys.
While you will eventually need to refuel, PHEVs like the Prius Prime average around 1.0 litre per 100km*, which is very cost-effective.
*Fuel consumption figures are assessed under controlled conditions and provided for comparison purposes; actual results may vary based on vehicle usage and operating circumstances.
Who are battery electric cars best intended for?
Electric vehicles may cost more than hybrids, and unlike PHEVs, EVs don’t automatically transition from electric mode to hybrid mode when the battery runs out. Newer EVs typically offer a range of approximately 200-300 km, while older models have a range closer to 100 km.
Electric cars are suited for those who primarily make short trips and appreciate the concept of zero-emission driving. For longer journeys, it’s essential to ensure that charging stations are available along the route and to allow ample time for recharging. However, this concern is diminishing with the advent of new EVs that can achieve ranges of up to 500 km.
A Comparative Analysis
Are you trying to reduce your car’s fuel expenses? Electric and hybrid vehicles are excellent options to consider.
Now is an ideal time to transition; models of hybrids and electric cars from 2023 and 2024 provide outstanding fuel efficiency, along with potential incentives and rebates to lower the price.
In this article, we will conduct a direct comparison between hybrid and electric vehicles to determine which one offers the most savings and serves as the superior choice overall.
Hybrid vs. Electric Vehicles Overview
Hybrid cars utilize gasoline engines supplemented by small electric motors.
Electric vehicles operate entirely on large battery-driven electric motors.
Hybrids are more affordable initially but qualify for fewer incentives and rebates compared to electric cars.
When compared to gasoline prices, electric vehicles can be up to 70% cheaper, while hybrids can be up to 60% cheaper at best.
Electric vehicles are significantly less expensive to maintain than hybrids due to having far fewer moving parts.
While electric cars have a higher initial cost, they often result in lower lifetime expenses due to fuel savings, incentives, and lower maintenance costs, although individual experiences may vary.
Before we proceed with the cost analysis, here’s a brief overview of how hybrid and electric vehicles function.
Electric cars exclusively use powerful electric motors connected to large rechargeable batteries. They are often referred to as battery electric vehicles (BEVs) or simply electric vehicles (EVs). Popular examples of electric vehicles include models from Tesla and the Hyundai Ioniq 5.
Hybrid vehicles combine conventional gasoline cars with pure electric cars. Each hybrid features a standard combustion engine (running on gasoline or diesel) alongside one or more small electric motors powered by a battery. Because the gas engines do most of the work, they are frequently termed “part-time electric cars.”
There are two primary subcategories of hybrids to note:
Plug-in hybrid electric vehicles (PHEVs): These hybrids recharge their batteries by plugging into a charging station or wall outlet. They usually can operate for short trips (20 to 30 miles) using electric power before transitioning to a gas-fueled hybrid mode. Notable PHEVs include the Jeep Wrangler 4xe and the Toyota Prius Prime.
Regular hybrids, or HEVs: These vehicles replenish their battery packs using the gasoline engine and regenerative braking. The smaller electric motors assist the gas engine, either extending the driving range or enhancing performance. The Honda Insight is a well-known example of a standard hybrid seen on the roads.
Which is More Affordable Upfront?
Winner: Hybrids
Hybrids are generally cost-effective, with many models priced between $25,000 and $35,000. The Honda Insight, a standard hybrid, starts at roughly $25,000, while the Toyota Prius Prime begins around $28,000.
Electric vehicles often have a higher price point, particularly if you seek one with a longer range. For instance, Tesla models exceeding 300 miles of range all start at prices above $60,000. The all-electric Chevy Bolt is a more affordable option, with starting prices in the mid $30,000s, but it only offers a range of 259 miles. This is because having a longer range necessitates a larger, more powerful battery, and battery prices remain high.
Clearly, hybrids win in this category.
Which Offers Better Incentives and Rebates?
Winner: Electric Cars
Electric vehicles stand out significantly when it comes to incentives and rebates. There are some available for plug-in hybrid vehicles, but options for regular hybrids are limited.
The most common incentive is the federal EV tax credit, which can provide up to $7,500 off the purchase of a new vehicle. This credit is available for qualifying electric vehicles and plug-in hybrids but does not apply to regular hybrids.
You may also discover additional incentives provided by your state, local authorities, or utility companies; numerous programs exist across the country. For example, New Jersey’s Charge Up NJ initiative promotes the purchase or lease of fuel-efficient vehicles priced under $55,000, offering rebates of up to $4,000 for eligible electric vehicles and $1,050 for plug-in hybrids. Unfortunately, regular hybrids are not eligible for rebates.
New Jersey’s Charge Up NJ program exemplifies incentive schemes typically offered at the local level. When we analyzed a random selection of 20 such programs, we observed:
All of them included battery electric vehicles (BEVs).
Most (but not all) covered plug-in hybrids (PHEVs), though the incentive amounts are usually lower.
None included regular hybrids.
Which has lower fuel expenses?
Winner: Electric vehicles
Both electric vehicles and hybrids are considerably cheaper to operate than traditional gas cars, but electric vehicles have a slight advantage.
Charging a Tesla with grid electricity costs approximately 4 to 5 cents per mile. This is 70-75% less than the typical fuel cost of an average gas vehicle, which is around 16 cents per mile.
In the case of a highly efficient hybrid like the Kia Niro Hybrid, the average fuel costs (combining gas and electricity) are a bit higher, falling within the range of 6 to 8 cents per mile. This is roughly 50 to 60% cheaper than a conventional gas vehicle.
For a highly-efficient gas hybrid such as the Honda Insight, the fuel expenses amount to about 7 cents per mile, which equates to approximately 55% less than a regular gas car.
In summary, electric vehicles are up to 70% more economical than gas cars, while hybrids are maximally 60% more affordable. Electric vehicles take the win by a narrow margin.
Which is more affordable to upkeep?
Winner: Electric vehicles
Electric vehicles are significantly cheaper to maintain compared to any other type of vehicle.
EVs require less maintenance due to not having a conventional engine and its many components. This means no more oil changes, and you won’t have to worry about replacing gaskets, cylinder heads, spark plugs, and so forth. You also don’t need emissions testing because they don’t have exhaust systems.
Overall, owning an electric vehicle can cost $400 to $1,000 less in maintenance each year compared to gasoline cars.
On the other hand, hybrid vehicles are not less expensive to maintain than gas cars; in fact, they might be more costly. Hybrids include all the moving parts typical of gas cars, plus additional components necessary for the electric system.
Hybrids vs. electric vehicles: Overall cost assessment
Electric vehicles are the evident champions. They qualify for more incentives and rebates, and their operational costs are significantly lower due to reduced ‘fuel’ and maintenance expenses.
Savings from electric vehicles accumulate over time, so they provide the most benefit if you plan to drive considerable distances or keep your vehicle for many years.
The main advantage of hybrid cars is their lower initial purchase price, but this benefit is often diminished—or even negated—by the substantial incentives and rebates available for electric vehicles.
Still undecided on which to select? You might want to set aside the calculator and think about other non-monetary factors. After all, financial considerations aren’t everything! If you prefer not to think about charging on a long road trip, opt for a hybrid. If you’re thrilled by immediate torque and a rapid 0-60 acceleration, fully commit to an electric vehicle! No matter which route you choose, both options will save you money compared to a traditional gas vehicle.
Utilize solar panels for economical charging
With a gasoline vehicle, control over your fuel expenses is limited—you must pay the rates determined by local gas stations.
However, with an electric vehicle or plug-in hybrid, you gain significantly more control over your charging costs. You can charge at public stations, at home using grid electricity, or with solar panels at your residence.
Here’s a breakdown of costs associated with each charging option:
Public charging: $0.28 – $0.69 per kWh
Grid power at home: $0.10 – $0.40 per kWh
Home solar panels: $0.05 – $0.11 per kWh
Charging an EV’s battery using home solar panels typically proves to be the most economical method, averaging around $0.11 per kilowatt-hour. In contrast, using power from your utility supplier is likely to cost closer to $0.15 per kilowatt-hour. Additionally, a significant advantage of solar panels is their ability to power your entire home, substantially lowering your household energy expenses.
Key distinctions between hybrids and electric vehicles (EVs)
If you’re interested in using electricity to power your driving, there are currently three choices that permit either all-electric or a combination of petrol or diesel fuel and electric power.
The first is the battery electric vehicle (BEV), which is entirely driven by a motor running on electricity. Electric vehicles must be connected to a power source to replenish the battery that propels the car.
The mild hybrid or plug-in hybrid model utilizes both electricity and petrol or diesel to operate a vehicle. A plug-in hybrid vehicle (PHEV) comprises a combustion engine and an electric motor, accompanied by a smaller battery than that found in an EV.
Like an EV, a PHEV’s battery also needs to be plugged in to recharge. However, its range is shorter than that of fully electric cars, usually extending up to 50 miles. This makes plug-in hybrids more suitable for shorter trips.
Lastly, the system that relies the least on battery power is the full hybrid. A fully hybrid electric vehicle combines a combustion engine with an electric motor to create motion.
The main distinction from a PHEV is the even smaller battery that cannot be charged by plugging it in. Instead, it is powered by energy produced from the combustion engine and regeneration from braking, which may be referred to as regenerative braking.
Fully electric
Fully electric vehicles, sometimes known as battery electric vehicles (BEVs), rely on electricity stored in a battery for propulsion. EVs require charging, which can be completed at home using a charge point like our Solo range or a standard 3-pin plug, or at public charging stations found at workplaces or supermarket parking lots.
Over the years, the average distance that these vehicles can travel on a single charge has more than doubled, increasing from about 100 miles in 2011 to 250 miles in 2024. Some high-end models can even provide a range of over 400 miles on a single charge.
The popularity of fully electric vehicles continues to rise, with 315,000 EVs registered in 2023, representing an 18% increase compared to the previous year.
Advantages of a battery electric vehicle
The advantages of BEVs can be summarized as follows:
Incentives
No road tax
Lower operational costs
Improved air quality
Distinct driving experience
Incentives available for BEVs
If you own or use a BEV via leasing or have access in another manner, you could receive up to £350 off the price of both purchasing and installing a home charger.
This incentive is beneficial for EV owners, enhancing the convenience of home charging, which is more accessible than using a 3-pin plug socket and faster.
The electric vehicle charge point grant is available for those living in flats or renting homes with private off-street parking. Additional criteria must be met to qualify, which you can check on the Government’s website.
You can explore the comprehensive list of available commercial and private grants in our guide to Government grants for electric vehicles.
No road tax for BEVs
All battery electric vehicles currently incur £0 in road tax.
However, from 1 April 2025, road tax regulations will alter. The existing £0 per year band A will be abolished, and vehicles in this band will transition to band B, which costs £20 annually. EVs registered on or after April 2017 will be subject to the new Standard Rate of £180 annually.
Although by April 2025 BEV drivers will lose the advantage of this tax exemption, the lower costs associated with charging an electric vehicle will still contribute to a reduction in the overall expense of owning and driving an EV.
You can find detailed information about road tax regulations and other relevant details in our extensive EV buying guide.
Lower expenses for BEVs
Operating a BEV is less costly compared to running a petrol or diesel vehicle.
You can benefit from competitive electricity rates when charging at home, including options that offer lower prices during off-peak hours.
Additionally, EVs are cheaper to service and maintain due to their electric motors and batteries, which feature fewer mechanical parts that may require frequent repairs or replacement.
We discuss expected costs related to owning and maintaining a battery electric vehicle in our EV buying guide.
Improved air quality thanks to BEVs
Only battery electric vehicles produce zero tailpipe emissions. Therefore, they do not release harmful pollutants while the electric motor and battery are in operation, thus contributing to better air quality.
Cars with internal combustion engines (ICE), along with plug-in hybrids and full hybrids, do emit pollutants that worsen air quality. The substances and chemicals responsible for pollution are associated with causing and exacerbating various health problems, including asthma, pneumonia, and lung cancer.
Unique driving experience
Driving BEVs provides a somewhat distinctive experience. Because power is delivered instantly from the battery to the electric motor, EVs accelerate quickly.
Traveling in an EV is generally a much quieter and smoother experience compared to an ICE vehicle. The absence of a combustion engine, gears, and other moving parts results in less vibration and noise.
Moreover, many contemporary EVs are equipped with excellent features, such as advanced infotainment systems, integrated cameras, and assistance systems.
Disadvantages of Battery Electric Vehicles (BEVs)
The drawbacks of BEVs include:
Discrepancy between official and actual range
Purchase cost
Charging challenges
Rapid advancements
Official range vs. real-world range of BEVs
You might discover that the official range provided by a BEV manufacturer does not align with the range you experience in reality. Manufacturers utilize the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) to estimate a vehicle’s range.
Although the WLTP range is more reliable than prior methods due to its incorporation of real-world driving conditions, the actual range can vary based on your driving habits, temperature conditions, and other variables.
Cost of acquiring a BEV
Generally, battery electric vehicles are pricier than their petrol or diesel counterparts.
If you drive frequently and prefer ownership, investing in an EV can be financially beneficial in the long run. Reduced expenses for charging, servicing, and maintenance will result in a lower overall ownership cost over time.
However, if you enjoy changing vehicles every few years, leasing might offer a more cost-effective route to driving an EV. There are competitive leasing deals available that can make leasing an EV comparable to owning a similar internal combustion engine vehicle.
Rapid technological advancements
The rate at which the electric vehicle industry is innovating is extremely high. While this is positive for widespread adoption as it makes EVs more appealing to a broader audience, it also implies that a vehicle that is cutting-edge today may seem outdated in just a matter of years.
If you wish to keep up with the latest advancements and benefit from continual innovations, consider flexible ownership options like leasing.
Hybrid Vehicles (Mild and Full)
Hybrid electric vehicles incorporate both a combustion engine and an electric motor, allowing them to utilize both sources simultaneously.
A full hybrid relies primarily on petrol or diesel for power but includes a small battery that recovers energy from braking and the combustion engine for recharging. This type cannot be plugged in for battery charging, so it remains dependent on fuel.
Mild hybrids, also known as plug-in hybrid electric vehicles (PHEVs), operate on the same principle of combining electric and fuel power for propulsion. The primary distinction is that a plug-in hybrid can recharge its battery through a charging station or a standard 3-pin plug.
Compared to fully battery electric vehicles, mild and full hybrids provide a relatively limited electric range.
If you’ve previously owned an internal combustion engine (ICE) vehicle, driving a full or mild hybrid will likely feel quite similar. You will still need to visit a petrol station to refuel and won’t depend solely on a charged battery to operate.
Enhanced efficiency through hybrid technology
Hybrids provide improved efficiency by effectively combining electric and fuel power to drive the vehicle.
Utilizing regenerative braking is crucial in minimizing fuel consumption, as it captures energy that would otherwise be wasted during braking. This feature renders hybrid vehicles more efficient compared to traditional petrol or diesel cars, especially in urban environments with frequent stop-and-go traffic.
Lower road tax for hybrids
Hybrid vehicles may qualify for a reduced road tax rate, though it is not eliminated entirely like it is for electric vehicles.
Hybrids registered on or after April 1 20217 will incur a road tax fee ranging from £0 to £120 in their first year, followed by £170 each subsequent year. This is £10 less than what an equivalent petrol or diesel vehicle would owe.
Additional charges apply to hybrids with a list price exceeding £40,000. For more details, refer to our road tax guide.
Towing capabilities
For those who frequently tow a caravan or trailer, opting for a full or mild hybrid might be the most suitable choice. It offers some electric driving advantages while retaining the ability to tow heavier loads.
Many electric vehicles are not permitted for towing, and if they are, towing will impact their range as more energy is required to pull additional weight, reducing the driving distance. Although a hybrid vehicle may not match the towing capacity of an ICE vehicle, it certainly exceeds what an electric vehicle can tow.
Extended range with combustion fuel
During long trips, a hybrid may achieve a greater distance than an electric vehicle, although advancements in battery technology are steadily increasing EV ranges. The superior fuel efficiency and predominant use of a combustion engine render hybrid vehicles more dependable for long-distance travel, plus you’ll need fewer stops for refueling.
Electric range of hybridsThe electric range for hybrids is quite limited. In a full hybrid, you can travel only 1 to 2 miles using the electric motor, while a mild hybrid can go up to 50 miles.
A Plug-in Hybrid Electric Vehicle (PHEV) is designed to handle most short trips using just battery power, comfortably covering the average 8-mile journey taken by UK drivers.
Cost of buying a hybrid
Typically, hybrids come at a higher purchase price compared to comparable petrol or diesel vehicles. They are also less economical for motorway driving than diesel cars due to their inefficiency in that environment.
For instance, the new petrol version of the Vauxhall Astra starts at a price of £26,960, whereas the PHEV variant begins at £37,935. This means the PHEV costs about £11,000 more than the traditional combustion engine version and even more than the fully electric Astra.
Upcoming ban of hybrid cars
Starting in 2035, the sale of new full and mild hybrid vehicles will be prohibited. This indicates that you can no longer purchase brand new hybrids, although buying and selling used ones will still be permitted.
This legislation may decrease the attractiveness of hybrids to consumers and could influence their resale values.
Adapting to new charging habits
If you’re transitioning from an internal combustion engine (ICE) vehicle, you will need to become accustomed to charging your mild hybrid in addition to refueling. While this adjustment might seem minor, it’s significant because a PHEV operates most efficiently when the battery is utilized.
Failing to charge the battery and depending solely on the combustion engine leads to lower fuel efficiency since you are carrying a heavy battery without taking advantage of its benefits.
Driving experience in a hybrid
The extra weight of the battery can influence the driving experience. Riding in a hybrid is not uncomfortable, but it may feel less smooth on uneven surfaces compared to an ICE or electric vehicle, as the added battery weight necessitates a stiffer suspension. You could also find that cornering is more challenging than in other cars.
So should you get a hybrid or an EV?
In the end, we believe that fully electric vehicles are the superior choice if you’re deciding between a hybrid and a battery electric vehicle. With zero emissions, they present a significantly better environmental option for EVs, are more cost-effective to operate, and provide an enjoyable driving experience.
If you’re considering acquiring an EV, take a look at our EV buying guide for tips on purchasing options, incentives, and maintenance.
The hybrid vehicle, which combines a gasoline engine with an electric motor, is gaining attention after being eclipsed by striking electric vehicles from brands like Tesla.
Sales of electric vehicles (EVs) have decreased in the U.S., as reported by car analytics site Edmunds, with the average time for a car to sell after arriving at a dealership increasing from 25 days at the start of 2023 to 72 days a year later. This measure, known as “days to turn,” is an effective indicator of consumer demand.
The significant tripling in the days to turn for EVs is remarkable and not aligned with trends seen in other vehicle categories. Conventional internal combustion engines saw their days to turn increase from 34 to 52 during the same timeframe, according to Edmunds data.
In contrast, standard hybrids outperformed the other categories in terms of popularity, with their days on the lot rising from 16 to 25 over the same period, according to data from Edmunds.
According to Morgan Stanley, hybrid sales grew five times quicker than EV sales in February 2024.
When the Toyota Prius debuted in the U.S. in 2000, it unexpectedly became a popular choice among celebrities and frugal consumers seeking to cut gas expenses. Its lack of flashiness or luxury made its broad appeal even more surprising.
However, this changed when Tesla ignited interest in electric vehicles with its stylish, speedy Roadster and Model S, pushing hybrids into the background. Major automakers quickly followed suit, aiming to join the EV trend — with the exception of Toyota, which lagged behind its competitors. To date, Toyota, the world’s largest car manufacturer, offers only two EV models: the bZ4X and the Lexus RZ, neither of which are sold in significant quantities.
Advocates for electric vehicles and environmental organizations have claimed that Toyota has been working to hinder the EV revolution it has not fully embraced. Although they have previously explored options for battery-electric vehicles like the RAV EV, the company has consistently maintained that the transition to complete electrification will be prolonged and that many consumers are not yet prepared for fully electric vehicles.
Yet, in late 2021, Toyota announced plans to launch 30 new EV models by 2030, with an aim for annual sales of 3.5 million vehicles.
Nearly two years later, hybrid and plug-in sales grew by almost 28% compared to the previous year, representing 30% of the Japanese giant’s portfolio.
Toyota is not the only manufacturer taking advantage of the rising hybrid market.
Hyundai may introduce hybrids at a factory in Georgia that was initially planned to focus solely on electric vehicles. Last year, Ford announced it would reduce output of certain EV models, including the F-150 Lightning electric pickup, in favor of producing more hybrids. General Motors, whose CEO, Mary Barra, has consistently stated a commitment to an “all-electric future,” indicated earlier this year that the company would bring plug-in hybrids back to North America.
However, a white paper released by the International Council on Clean Transportation in 2021 stated that hybrids are not as effective as EVs in reducing greenhouse gas emissions due to their fuel usage.
Nevertheless, proponents argue that hybrids offer a more viable short-term alternative.
Some hybrids, particularly plug-in hybrids, may have greater emissions than anticipated and present challenges for owners, such as high purchase prices, limited options, fuel expenses, and the costs associated with maintaining a complicated powertrain that includes both electric and traditional combustion components.
Hybrid vehicles have existed for more than two decades and are becoming increasingly popular. They are the preferred choice for car buyers looking to lower their fuel consumption and reduce emissions. But how do they operate, and what distinguishes a hybrid from a plug-in hybrid? In this article, we will clarify these distinctions and assist you in determining which type of hybrid suits your needs best, as well as how much extra you might need to invest. We will also cover mild hybrids and electric vehicles to give you a broader perspective on the eco-friendly car market. Therefore, if you’re considering a hybrid, continue reading before visiting your local dealership.
Hybrids, also known as hybrid electric vehicles (HEVs), utilize both a gasoline engine and an electric motor powered by a battery pack. The engine and electric motor collaborate to drive the vehicle, enhancing fuel efficiency since the gasoline engine operates only when necessary. At lower speeds, the electric motor exclusively drives the wheels, while the gasoline engine activates at higher speeds. During braking, the gasoline engine shuts off. However, when significant power is required, such as during rapid acceleration or uphill climbing, both the motor and engine provide power to the wheels. The vehicle’s onboard computer manages the power requirements and timing, allowing you to simply drive as usual.
Regular hybrids do not need to be plugged in to recharge their batteries. They function similarly to gasoline-powered cars, allowing you to get in and drive, filling the tank with gas as needed. Instead of relying on an external charging source, the compact battery pack is partially recharged through regenerative braking. When you press the brake pedal, a second electric motor (most hybrids are equipped with two motors) acts as a generator, sending energy to the battery pack—energy that would otherwise be lost as heat during braking in a conventional vehicle. When additional energy is required, the gasoline engine powers the generator to recharge the battery.
Hybrids tend to be most fuel-efficient during stop-and-go traffic and least efficient at constant highway speeds. The electric driving range for most hybrids is limited to only about 1-3 miles at low speeds due to their small battery pack. Plug-in hybrids, on the other hand, boast a significantly greater electric driving range.
Plug-in hybrids, or plug-in hybrid electric vehicles (PHEVs), are similar to standard hybrids but feature a much larger battery pack that offers an all-electric driving range of approximately 15-50 miles, depending on the model. This allows them to function like an electric vehicle until the battery charge is depleted. At that point, the gasoline engine engages, and the vehicle operates as a regular hybrid.
Plug-in hybrids serve as a middle ground between conventional hybrids and electric vehicles, combining the advantages of both. Because the battery pack is large, a plug-in hybrid requires being plugged in and charged like an EV to maximize its electric driving range. However, unlike an electric vehicle, it can run as a standard hybrid if the battery is uncharged. This means owners can predominantly drive on electric power in urban areas if regularly charged, while also enjoying long road trips without concerns of range anxiety.
Daily charging is the most efficient method for utilizing a plug-in hybrid. When a PHEV is charged on a daily basis and driven within its electric range, visits to the gas station can become infrequent. It’s also crucial to charge PHEVs as often as possible, since the large battery pack adds weight, leading to reduced fuel efficiency when it’s not used to its full potential compared to a conventional hybrid.
Fortunately, since a plug-in hybrid’s battery is relatively smaller than that of an electric vehicle, you can use the included charging cord to plug it into a standard 120-volt outlet (which powers most electronics). This is known as Level 1 charging. Alternatively, you can choose a faster Level 2 home charger that operates on a 240-volt outlet, but this entails purchasing a charging station and possible installation costs for the outlet. If you think you may buy an electric vehicle in the future, owning a plug-in hybrid will give you a good insight into the experience.
What kind of hybrid suits your needs?
If you don’t have access to a power outlet for charging and prefer a vehicle that operates similarly to a standard gas car, a hybrid is the way to go. There’s no need to worry about plugging it in, and if you’re budget-conscious, these vehicles are typically less expensive than plug-in hybrids. Moreover, there are a greater number of hybrid models available in the market. Additionally, for those who frequently take long road trips, hybrids generally offer better fuel efficiency, since plug-in hybrids may quickly exhaust their electric range when traveling at highway speeds.
On the other hand, a plug-in hybrid could be a better option if you can charge it daily, have a commute that’s roughly equal to the model’s electric range, don’t often go on out-of-town trips, and are okay with the higher cost. A plug-in hybrid works well for individuals who wish to lower tailpipe emissions but aren’t ready to transition to a fully electric vehicle.
What is the cost difference between hybrids and plug-in hybrids?
Hybrids typically have a higher price than their non-hybrid equivalents, though the price gap has narrowed in recent years. For instance, the price difference between the Toyota Corolla LE and the Corolla Hybrid LE is just $1,450. However, with the RAV4 and RAV4 Hybrid, the base model price difference is $3,050, although the hybrid variant includes all-wheel drive. The cost difference between hybrid and non-hybrid versions of the Kia Sportage LX is about $1,400, while for its corporate sibling, the Hyundai Tucson, the price difference between the base models is quite substantial at $5,075.
Plug-in hybrids are pricier than standard hybrids due to their larger battery and more powerful motors. Moreover, most plug-in hybrid options are available only in higher trim levels that come with additional features. The cost difference can be significant but might be partially counteracted by tax benefits that certain buyers may qualify for, as detailed below. The Toyota Prius serves as a hybrid but also has a plug-in hybrid variant called the Prius Prime, which costs $5,025 more than the base Prius model. The price gap for the hybrid and plug-in hybrid versions of both the Toyota RAV4 and Kia Sportage exceeds $10,000.
As the price variations between hybrids and plug-in hybrids differ widely, it’s advisable to compare several models before making your decision.
What exactly is a mild hybrid?
A mild hybrid, or mild hybrid electric vehicle (MHEV), primarily operates on gasoline but has a small motor and battery that provide assistance, leading to a slight improvement in fuel efficiency and performance. Unlike traditional hybrids that feature a larger battery capable of powering the vehicle alone, a mild hybrid’s smaller 48-volt battery cannot propel the car independently. Instead, a mild hybrid system often replaces a conventional starter and alternator, powering the vehicle’s electronics, such as air conditioning and the radio, without the engine’s contribution. A mild hybrid also boosts the engine’s power temporarily during acceleration. Numerous brands produce vehicles with mild hybrid systems, which generally come at a lower price than full hybrids or plug-in hybrids.
What about electric vehicles?
Electric vehicles (EVs) operate entirely on electric power and do not use a gas engine. They feature a battery pack that is significantly larger than that of hybrids or plug-in hybrids and are driven by one to four motors that are considerably more powerful than those in any hybrid. As EVs lack a gas engine, they require regular charging. In most instances, using a 120-volt outlet won’t suffice unless your daily travel is quite short. EVs typically need a Level 2 home charger installed. If you’re unable to charge at home or work consistently, you must utilize public Level 3 fast-charging stations, provided they are accessible in your area. However, the most convenient and cost-effective solution for charging an EV is at home.
The Chinese electric vehicle manufacturer BYD has experienced a significant surge in its quarterly revenues, surpassing Tesla for the first time.
It reported revenues exceeding 200 billion yuan ($28.2 billion, £21.8 billion) from July to September. This represents a 24% increase compared to the same timeframe last year and outpaces Tesla’s quarterly revenue of $25.2 billion.
Nevertheless, Tesla managed to sell more electric vehicles (EVs) than BYD during the third quarter.
This development coincides with rising EV sales in China, bolstered by government subsidies aimed at encouraging consumers to replace their gasoline-powered vehicles with electric or hybrid models.
In addition, BYD achieved a monthly sales record in the last month of the quarter, indicating a continued upward trend for China’s leading car manufacturer.
However, there is an increasing backlash overseas against the Chinese government’s backing of local car manufacturers like BYD.
Recently, the European Union implemented tariffs of up to 45.3% on imports of electric vehicles made in China throughout the bloc.
Chinese EV producers were already subject to a 100% tax in the United States and Canada.
These tariffs aim to address alleged unfair government subsidies for China’s automotive industry.
As of last week, official figures revealed that 1.57 million applications had been submitted for a national subsidy of $2,800 for each older vehicle exchanged for a more environmentally friendly one.
This is in addition to other existing government incentives.
China is relying on high-tech products to rejuvenate its struggling economy, with the EU representing the largest international market for the country’s electric vehicle sector.
Over the past two decades, the domestic car industry in China has expanded rapidly, and brands like BYD have begun to enter international markets, alarming the EU, which fears that local companies will struggle to compete with lower pricing.
Analysts are confident that this year will belong to Chinese brands, which are growing at a pace faster than that of Elon Musk’s company.
A few years back, it was believed that Volkswagen was the only potential challenger to Tesla’s dominance in electric vehicle sales. However, since 2022, BYD has been posing a significant threat to the American firm. The Chinese automaker exhibits a remarkably high growth rate, surpassing that of Tesla, and the two companies are now in close competition.
Indeed, BYD had already outperformed Tesla in the fourth quarter of 2023, but Elon Musk’s company retained its top position by summing up the total number of cars sold over the entire year. What will transpire in 2024? Let’s explore further.
A different kind of growth
Tesla experienced a sluggish first quarter in 2024, but in the second quarter, recent data suggests that it regained traction and experienced growth, exceeding Wall Street’s predictions. BYD, on the other hand, had a similar experience, though it slightly missed expectations.
From April to June, electric vehicle sales reached 443,956 for Tesla and 426,039 for BYD. While BYD has some ground to make up, analysts anticipate that the Chinese brand will surpass Tesla by year’s end.
Examining the figures for the year’s initial months, Tesla delivered 813,739 units, whereas BYD delivered 726,153. Compared to the same period in 2023, these changes amount to -9% for Tesla (which sold nearly 890,000 cars last year) and +18% for BYD (which delivered just under 600,000).
Tesla: 813,739 vehicles sold in the first half of 2024 (-9% compared to 2023)
BYD: 726,153 vehicles sold in the first half of 2024 (+18% compared to 2023).
China, increasingly the leader
In comparison to the first quarter of this year, growth stood at 19% for the American company and 42% for the Chinese company. It is specifically this varying rate of growth, fueled by BYD’s more diverse range that includes affordable models, that has led many analysts, including those at Counterpoint, to speculate about an eventual takeover.
There is a second factor at play. China (where BYD is naturally well established) continues to be the foremost market for electric vehicles. This will aid all Chinese brands in their expansion, as BEV sales in that region are projected to be four times higher than in North America this year. Moving forward, it is anticipated that the Land of the Dragon will capture a 50% market share (by 2027) and surpass both Europe and North America combined before the decade concludes.
In 2011, Elon Musk mocked BYD during a Bloomberg interview, laughing at their products.
“Have you seen their car?” Musk remarked. “I don’t find it particularly appealing, the technology isn’t very impressive. Additionally, BYD faces significant challenges in its home market of China. They should primarily focus on ensuring their survival in China.”
BYD, however, did not go under. Instead, it overtook Tesla in the fourth quarter to become the leading EV manufacturer, selling more electric vehicles than its U.S. competitor.
“Their ambition was to become the largest auto manufacturer in China and establish the country’s manufacturing reputation,” said Taylor Ogan, CEO of Snow Bull Capital, regarding BYD’s long-term goals.
So, what led the Chinese firm, which started by producing phone batteries, to evolve into a major electric vehicle manufacturer?
The history of BYD
Although BYD is now recognized as a giant in electric vehicles, its influence extends into various sectors including batteries, mining, and semiconductors, which significantly contributes to its success.
Founded in 1995 by chemist Wang Chuanfu in Shenzhen, a crucial tech hub in southern China, BYD started with 20 employees and 2.5 million Chinese yuan in initial funding, equivalent to about $351,994 today.
The company ventured into lithium-ion battery production in 1996, coinciding with the rise in mobile phone usage. By 2000 and 2002, BYD was supplying its batteries to major mobile phone brands Motorola and Nokia.
In 2002, BYD was listed on the Hong Kong Stock Exchange, taking advantage of its success in the lithium-ion battery sector.
BYD’s transition to automobiles
BYD’s acquisition of a small car manufacturer named Xi’an Qinchuan Automobile took place in 2003.
Two years later, it released its inaugural vehicle, the F3, a traditional combustion engine model. In 2008, it introduced the F3DM, its initial venture into electric vehicles, which was a plug-in hybrid.
That same year, Warren Buffett’s Berkshire Hathaway made a $230 million investment in BYD, which significantly boosted its electric vehicle goals.
BYD kept pushing into the electric vehicle market, leveraging its experience as a battery manufacturer. In 2020, the company rolled out the Blade battery, which many credited for BYD’s rapid growth in the EV sector.
This LFP (lithium iron phosphate) battery gained attention during a time when many battery producers were moving away from LFPs due to assumptions about their inferior energy density; specifically, that they were too heavy for the energy they could store.
However, BYD promoted the Blade as a revolutionary battery that provided excellent energy density while ensuring high safety levels. It decided to feature this battery in its Han sedan, launched in 2020, which was aimed at competing with Tesla’s Model S. Subsequently, BYD included the Blade in its later models.
“The energy density at both the cell and pack levels exceeded BYD’s initial projections… It was a remarkable surprise,” Ogan commented.
In 2020, BYD sold 130,970 pure battery electric vehicles. Last year, its sales skyrocketed to 1.57 million battery-powered vehicles.
What contributed to BYD’s success?
The achievement with the Blade highlights the reasons behind BYD’s success in electric vehicles, which include strategic investments and the diversification of its business beyond just automobiles.
“BYD gained significant experience as a supplier in the high-tech industry, building resilience by providing batteries to demanding clients like Apple,” Tu Le of Sino Auto Insights explained to CNBC.
“Wang Chuanfu possessed the foresight to acquire a struggling local automotive brand, allowing him to innovate in battery technology, enabling the company to sell to other automakers. To top it off, they were diligently focused on continually enhancing the design, engineering, and quality of its own vehicles. Little did we realize that everything they had accomplished over the past 15 to 20 years prepared them to surpass Tesla in Q4 ’23.”
Initially, BYD didn’t dive straight into fully electric vehicles. The company continued to market hybrid cars, which, according to Alvin Liu, an analyst at Canalys, was critical for BYD’s early success.
“During the initial phase of the Chinese electric vehicle market, BYD opted to launch both Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicles (PHEV) simultaneously. This approach enabled BYD to capture the market when charging infrastructure was poorly developed, and consumers were uncertain about the benefits of electric vehicles,” Liu stated to CNBC.
“The PHEVs’ features, including high economic efficiency and the absence of range anxiety, played a vital role in helping BYD dominate the market.”
Liu noted that BYD strategically positioned itself within the mid-range market, where competition was less intense in China, thus aiding its expansion. According to Liu, BYD has also excelled in branding by creating different sub-brands to address various price segments, with one example being BYD’s mid-to-high-end EV brand, Denza.
Beijing supports electric vehicles
In addition to BYD’s own strategies, its growth has been bolstered by significant backing from the Chinese government for the nation’s electric vehicle sector. In recent years, Beijing has provided subsidies to encourage the purchase of electric cars and has supported the industry. These initiatives began around 2009, coinciding with BYD’s effort to enhance its EV focus.
According to Rhodium Group, BYD received about $4.3 billion in government support between 2015 and 2020.
“BYD is a very innovative and versatile company, but its success is closely tied to the protection and support from Beijing,” stated Gregor Sebastian, a senior analyst at Rhodium, in an interview with CNBC. “Without the backing from Beijing, BYD would not have achieved its current status as a global leader.”
“Over time, the company has benefited from lower-than-market rates for equity and debt financing, enabling it to increase production and research and development efforts.”
Global aspirations
Having secured a dominant position in China’s EV market, BYD is now aggressively expanding internationally. It markets vehicles in several countries, including the United Arab Emirates, Thailand, and the UK.
In Southeast Asia, BYD holds a 43% share of the electric vehicle market. However, its global expansion strategy extends beyond simply selling cars; it also includes manufacturing and sourcing materials.
BYD announced in December its intention to launch its first manufacturing facility in Europe, located in Hungary. Additionally, the company is exploring opportunities to acquire lithium mining assets in Brazil, which is vital for BYD’s batteries.
Despite these global ambitions, the company faces increased government scrutiny regarding the subsidies enjoyed by Chinese automakers.
In September, the European Commission, which is the executive body of the European Union, initiated an investigation into the subsidies provided to electric vehicle manufacturers in China.
Simultaneously, the U.S. is seeking to strengthen its domestic electric vehicle industry through the Inflation Reduction Act, aiming to limit competition from Chinese firms.
“Measures like the IRA and the EU’s subsidy investigation are designed to slow China’s advancement in these markets,” remarked Sebastian from Rhodium.
“To maintain its growth trajectory, BYD is actively confronting these political challenges, as evidenced by its recent investment in an EV plant in Hungary, highlighting its dedication to global growth.”
What’s next?
The competition between Tesla and BYD — the two largest electric vehicle manufacturers in the world — is poised to persist. According to Le from Sino Auto Insights, he believes BYD has not yet achieved its “maximum potential.”
“Many automotive companies historically overlooked them, which echoes the early journey of Tesla when it was similarly underestimated,” Le noted.
On the other hand, Tesla is bracing for tougher competition in 2024, with Chinese rivals introducing more models and established automakers attempting to catch up in the electric vehicle landscape.
Daniel Roeska, a senior research analyst at Bernstein Research, mentioned to CNBC that Tesla doesn’t have a significant driver for sales volume in its vehicle lineup in the upcoming months. Conversely, BYD may experience more rapid growth.
“BYD, in contrast, is fully accelerating its efforts … by boosting growth in Europe and other international markets. Thus, there is considerable potential for growth in BYD’s narrative over the next 12 to 24 months,” Roeska stated.
Tesla’s Musk has admitted that he shouldn’t have underestimated BYD. In a post on X responding to a video of a 2011 Bloomberg interview, Musk remarked: “That was many years ago. Their vehicles are very competitive these days.”
BYD announces additional international growth
On July 16th, BYD revealed its intention to set up a facility in Cambodia, representing the newest phase in its global growth strategy. This Cambodian site will support the six other plants that have been announced outside of China, which are located in Brazil, Turkey, Thailand, Hungary, Indonesia, and Uzbekistan. BYD’s international growth is occurring during a period when several nations are looking to impose tariffs on vehicles imported from China to safeguard their domestic automotive sectors.
The Current Situation
Most of BYD’s vehicles are manufactured at its three factories in China: Shaanxi, Hunan, and Guangdong, which correspond to its largest customer base. In 2023, BYD sold 2.57 million of a total of 2.7 million vehicles in China. However, the company has faced challenges in increasing its market share outside of China, with its export growth not keeping pace with domestic sales. After China, the Asia Pacific region, which includes Thailand, Malaysia, and Australia, was its next largest customer base in 2023. BYD plans to double its vehicle exports in 2024 compared to 2023.
Southeast Asia
In recent years, Southeast Asia has become a center for electric vehicle production. BYD already operates a facility in Thailand with a capacity of 150,000 units annually. Furthermore, it has confirmed plans to create another plant in Indonesia, also with a capacity of 150,000 units, expected to start production in January 2026. The Cambodian plant will serve as an assembly facility capable of processing 20,000 units each year for local and export markets. Although the market share for electric vehicles in the region remains limited, it is on the rise. With three plants in Southeast Asia, BYD aims to tap into this developing market and utilize the region as a launching pad for exports worldwide.
Europe
BYD intends to set up an electric vehicle manufacturing facility in Hungary within the next three years and has announced another plant in Turkey, which is expected to be operational by the end of 2026. Each of these plants will have an annual capacity of 150,000 units. This expansion comes as Chinese electric vehicle manufacturers exporting to the EU and Turkey encounter increased tariffs. In 2023, BYD sold slightly over 15,000 vehicles in the EU, EFTA, and the UK, according to the Rho Motion EV & Battery Database. Within the first six months of 2024, it has already equaled that figure. Targeting Europe as a significant area for growth, BYD recently sponsored the UEFA European Football Championship to enhance its brand visibility in the region. Additionally, BYD gains an advantage from having the lowest tariff among all Chinese imported vehicles under the newly implemented EU tariffs.
South America
BYD’s factory in Brazil is currently being built and is slated to begin operations by late 2024 or early 2025, with a capacity of 150,000 units. While the company’s footprint in the region was limited in 2023, sales have surged dramatically in 2024. In the first half of 2024, BYD sales in Brazil soared by over 1,800% compared to the same period in 2023. Brazil has gradually increasing import tariffs on electric vehicles, reaching 35% by July 2026. The new facility will help alleviate the impact of these tariffs and broaden BYD’s presence in the region. Establishing a brand identity has also been a priority in this market, with the company recently sponsoring the CONMEBOL Copa América.
Uzbekistan
BYD’s facility in Uzbekistan commenced operations in January 2024, with a production capacity of 50,000 vehicles annually. Additionally, BYD is planning to form a joint venture with a local company, UzAuto. With this facility, BYD seeks to serve the expanding electric vehicle market in Central Asia.
Rho Motion’s Assessment
BYD stands as one of the few fully electric vehicle manufacturers capable of generating profits, with Tesla being another prominent competitor. This financial strength allows BYD to pursue global expansion more easily than other companies that operate at considerable financial losses. As many countries increase import tariffs on electric vehicles, BYD has proactively established facilities in Brazil, Hungary, and Turkey. Its factories in Southeast Asia will also act as key strategic locations for broader global expansion and export activities. Once all its facilities are operational, BYD will possess an annual global production and assembly capacity of 820,000 units outside of China, with potential for further expansion.
BYD’s global growth initiative faces significant challenges in Japan.
BYD is launching electric vehicle charging stations and increasing marketing efforts and customer incentives in Japan, seeking to enhance sales in a market that has posed difficulties for the Chinese automaker’s worldwide expansion.
Supported by Warren Buffett, BYD has become the largest manufacturer of electric vehicles in China following years of rapid growth domestically.
The company is now looking to expand internationally, including into Japan, which is among the largest automotive markets globally.
However, Japan presents a tough landscape for foreign car manufacturers.
The demand for electric vehicles has historically been low, and the government modified the calculation of EV subsidies this year, which reduced support for BYD and several competitors and raised fears of protectionism.
In order to attract Japanese consumers, BYD is providing discounts on the first 1,000 units of its latest model and airing TV ads featuring a Japanese actress.
This approach has resulted in marketing expenses that are higher than initially anticipated.
BYD’s efforts to expand internationally are under close observation, particularly as the company’s value is nearly equivalent to that of both GM and Ford combined.
Nonetheless, some Japanese consumers are hesitant about purchasing high-cost products from China due to concerns over quality.
The two largest economies in Asia also have a complex history marked by wartime events and ongoing political issues.
“The cars are impressive, but I doubt they’ll be successful in Japan,” remarked Yukihiro Obata, a 58-year-old who visited a BYD showroom in Yokohama near Tokyo with his son in July.
“Japanese consumers generally perceive domestically manufactured goods as superior to those from China and South Korea.
It’s hard for us to believe that Chinese products could be of higher quality,” he expressed.
Obata mentioned that he was open to the idea of buying a foreign vehicle and was also looking into EV options from Mercedes-Benz, Audi, and Hyundai.
BYD, based in Shenzhen, inaugurated its first showroom in Japan in February of last year, having sold over 2,500 vehicles to date.
In comparison, Toyota has sold slightly more than 4,200 battery electric vehicles in Japan during the same timeframe, while nearly 17,000 Teslas had been registered in the country as of the end of March 2023, according to the latest available industry data.
BYD currently offers three models and operates over 30 showrooms.
“There are individuals in Japan who genuinely dislike Chinese products, so it’s not wise to aggressively push our brand on them,” stated Atsuki Tofukuji, the president of BYD Auto Japan.
Instead, he aims to win over consumers by highlighting BYD’s affordability and performance.
ELECTRIC VEHICLE SUBSIDIES
Electric vehicles made up just over 1% of the 1.47 million passenger cars sold in Japan in the first seven months of this year, based on industry data.
This figure excludes the low-power “kei” mini cars designed for the domestic market.
Sales of electric vehicles have been slow in Japan because Toyota and other local manufacturers have prioritized hybrid technology.
In April, the government revised its EV subsidy program, stating it will encourage the development of charging infrastructure and other related amenities.
Subsidies, which were previously based on vehicle performance, now consider factors such as the number of fast chargers a manufacturer has installed and the quality of after-sales service.
The subsidy for BYD’s Atto 3 SUV, priced at 4.5 million yen ($30,996.00), was almost halved, dropping to 350,000 yen from 650,000 yen.
These reductions in subsidies have negatively impacted sales, according to Tofukuji during a company event in July.
In response, BYD offered 0% loans from April to June, along with cashback deals on home chargers during July and August.
The company also intends to install a fast charger in 100 locations by the end of the next year, as revealed by Tofukuji to Reuters, a plan that could potentially enable it to qualify for larger subsidies.
To boost its brand recognition, BYD began airing television commercials featuring Masami Nagasawa, a Japanese actress and model.
This strategy has attracted more customers, although the automaker has exceeded its originally planned marketing budget in Japan, as Tofukuji noted, without disclosing the specific marketing expenditure.
BYD’s lineup in Japan includes the Seal sedan, retailing for 5.28 million yen for the rear-wheel-drive model, which qualifies for a 450,000 yen subsidy.
Additionally, the company offers the Dolphin, starting from 3.63 million yen and eligible for a 350,000 yen subsidy.
JAPANESE APPROACH
The change in subsidies might demonstrate a governmental effort to protect the domestic automotive sector, suggested Zhou Jincheng, manager of China research at the auto research firm Fourin in Nagoya.
“They needed to implement some measures to safeguard their automotive industry,” Zhou stated.
An official from the industry ministry remarked that the goal of the revision was to create an environment that enables sustainable use of electric vehicles, promoted “in a Japanese manner.”
Other automakers that experienced subsidy reductions included Mercedes, Volkswagen, Peugeot, Volvo, Hyundai, and Japanese brand Subaru.
Nissan and Toyota’s SUVs continued to qualify for the maximum subsidy of 850,000 yen, and Tesla also witnessed equal or higher subsidies on the models it markets in Japan.
While overall electric vehicle sales are low, foreign automotive brands constituted nearly 70% of sales in the first seven months of the year.
The decreased subsidy did not deter Kyosuke Yamazaki, a first-time car buyer in his 30s, from purchasing a BYD Atto 3, although he lost around $2,000 in savings due to his purchase occurring after April. He mentioned that he preferred the longer driving range of these vehicles compared to Japanese competitors and was comfortable buying from a Chinese company. “I previously worked in Shanghai,” he noted. “I’m familiar with BYD.”
BYD recently declared a $1 billion investment in Turkey. This announcement quickly garnered attention: In July, the Chinese electric vehicle (EV) manufacturer BYD (Build Your Dreams) revealed plans to invest $1 billion in Turkey. In the western region, particularly in the industrial city of Manisa, BYD aims to establish a manufacturing facility with the capacity to produce 150,000 electric and hybrid vehicles. Furthermore, BYD also intends to set up a research and development center near Izmir.
Choosing Turkey represents an industrial policy achievement for Turkey’s president, Recep Tayyip Erdoğan. Additionally, it further solidifies the strengthening economic collaboration and logistical ties between Ankara and Beijing.
BYD’s investment marks its entry into the Turkish market, which has significant implications for European competitors in the industry and the European Commission in Brussels. Turkey’s customs union with the European Union (EU) plays a crucial role in BYD’s manufacturing and export capabilities. Since automobiles will be produced in Turkey, BYD can enhance its supply chains in Europe without incurring additional customs duties on Chinese EVs that were introduced by the Commission in July 2024. Through this strategic approach of “tariff jumping,” BYD gains pricing benefits in EU markets.
Selecting Turkey for a new EV manufacturing facility acknowledges the evolving production capacities of the Turkish automotive sector. Chinese firms like BYD are capitalizing on the industry’s increasing export capabilities. In recent years, the sector has developed its innovation ecosystem with the production of Turkey’s first domestic EV, the Togg.
It is also important to note that BYD’s decision to invest in Turkey included a significant incentive. The Turkish government suspended import taxes totaling 40 percent (added to the purchase price) for EVs from China. This measure to eliminate tariffs aims to attract manufacturers like BYD to invest and produce in Turkey, yielding positive outcomes for both parties. Ankara has utilized its leverage because BYD now avoids Turkish taxes and future EU tariffs.
The Sino-Turkish agreement has another significant aspect: the joint venture is being embraced across Turkey’s political spectrum. Given the current political divisions in Turkey, this is noteworthy. It highlights the importance of the bilateral agreement, which represents the largest single Chinese foreign direct investment in Turkey in the past decade. BYD’s commitment is expected to boost the Turkish automotive supply chain and bring about a technological advantage in the nation’s manufacturing sectors.
The implications of this decision extend globally, presenting challenges for Europe. For BYD, establishing operations in Turkey will create a value-added network for electric mobility while facilitating the import of essential materials for battery production and, ultimately, the assembly of various EV models in BYD’s expanding portfolio.
The joint venture paves the way for European export markets and opens access to regions in the Middle East, neighboring Turkic countries, and across Africa. Overall, BYD’s initiative in Turkey transcends a mere regional manufacturing effort; it strengthens the global growth strategy of the Chinese EV manufacturer.
This development raises concerns about the EU’s response to such challenges. Beyond focusing on Turkey, BYD’s European expansion includes Hungary, an EU member state where a second EV production facility is under construction. Chinese EV industry investments in countries like Turkey and Hungary are based on strategic considerations, as both countries maintain stable relations with China absent from trade disputes and potential sanctions.
BYD’s investments demonstrate how Chinese EV manufacturers are devising strategies to navigate around protectionist policies. Turkey serves as a crucial link in this strategy. The evolution of EV mobility is increasingly influenced at the intersection of East and West, with Turkey playing a pivotal role in connecting the two.
By avoiding EU tariffs on Chinese EVs, BYD positions itself for profitable sales within the Single Market. In light of this scenario, the EU must reassess its trade policies concerning non-EU nations. Consequently, the ongoing discussions about modernizing the customs union with Turkey should be given increased urgency and significance. Expanding the customs union should also address aspects such as supply chain transparency and updated subsidy regulations.
According to a post shared on X, Turkey’s industry minister, Mehmet Fatih, announced that production at the factory is set to begin by late 2026. This development is expected to enhance BYD’s capacity for manufacturing vehicles in Europe, with an estimated annual production capability of 150,000 vehicles.
BYD’s new manufacturing facility in Turkey reflects its strategic initiative to navigate the European Union’s recent restrictions on electric vehicle imports from China. Since Turkey is part of the EU Customs Union, vehicles produced there could potentially avoid the additional 17.4% tariff that Chinese electric vehicles must pay to enter the European market, as reported by Yahoo News.
In light of global trade tensions, BYD’s thoughtful choice highlights the hurdles that Chinese electric vehicle manufacturers have to face. The attempts by Western countries to shield their domestic automotive industries from cheaper Chinese imports have prompted BYD and its competitors to explore local production alternatives to circumvent stringent trade regulations.
Concerns from U.S. officials arise regarding possible market access loopholes stemming from the ambitions of Chinese electric vehicle brands, including BYD, MG, and Chery, to expand their reach into countries like Mexico. These developments underscore the delicate balance these companies must maintain while pursuing international growth and complying with evolving trade regulations.
Philip Nothard, Director of Insight and Strategy at Cox Automotive, noted that BYD’s strategic investments in Turkey represent the company’s aspirations for global and European growth. While tariffs present challenges, he emphasized that organizations like BYD are adept at adjusting their strategies to swiftly overcome regulatory hurdles.
BYD’s increasing footprint in the market poses a competitive threat to Tesla, which is a major player in the electric vehicle sector with a strong foothold in Europe. The EU’s crackdown on imports from China also affects Tesla’s operations in Europe, particularly regarding its gigafactory in Germany. This situation could lead to higher prices for some Tesla models, including the Model 3, in that region.
Coverage of BYD’s investment decision is predominantly framed in Western media within the context of new trade barriers in the U.S. and the EU. From the Chinese viewpoint, this correlation is relatively minor. BYD is rapidly establishing new vehicle manufacturing plants globally, not limited to Europe alone.
Just prior to the signing in Istanbul on July 4, BYD commenced operations at its latest factory located in Rayong, Thailand. Additionally, a BYD subsidiary is currently working on a new car battery production facility in Thailand. Earlier this year, BYD began production at a new factory in Uzbekistan. In Brazil, BYD has acquired a former Ford manufacturing site, while in Mexico, it is reportedly searching for an appropriate location.
The impressive developments illustrate that the Chinese automaker remains largely unaffected by the protectionist tendencies found in certain regions or nations, as noted by the Chinese specialist portal “CN EV POST.” This approach to “Go-Global” expansion by BYD is backed by strong and sustained market success. In the second quarter of 2024 alone, the electric vehicle manufacturer recorded sales exceeding 980,000 cars, marking a 40% increase compared to the same period the previous year, according to Bloomberg. Last year, BYD surpassed Tesla to become the market leader for electric vehicles in China and is now selling more vehicles across all powertrains than Volkswagen, the former local leader.
Analysts predict that the Shenzhen-based private company can maintain this successful trend in the forthcoming years. “We believe that other firms within the industry will struggle to match the company’s leadership in technology, which is built on a decade of innovation and exceptional vertical integration capabilities,” stated market analysts at HSBC regarding BYD.
The Chinese firm pursues a long-term strategy to manufacture as many of its core components in-house – from batteries to chips and electric drive systems. Accordingly, the company is significantly boosting its research and development efforts. BYD is investing one billion euros to establish a new vehicle factory in Turkey, which will have a production capacity of 150,000 vehicles annually. Simultaneously, a new research and development center is being planned, as stated by the Turkish Ministry of Industry.
While the additional tariffs imposed by Brussels on Chinese electric vehicles may have had a slight impact on BYD’s decision for its new location, it is important to note that Turkey is not an EU member. However, it does have a customs agreement with the EU and has free trade arrangements with 23 European nations.
BYD aims to strengthen its presence in the European market through operations in Turkey. The new facility is designed to enhance the company’s “logistical efficiency” to facilitate access to customers in Europe, as stated in BYD’s press release following the contract signing in Istanbul.
Turkey has increased import taxes on vehicles from China. Nevertheless, BYD is also focusing on the Turkish market, which has a population of nearly 90 million and a current electric vehicle penetration rate of 7.5 percent, presenting substantial potential. Like the EU, Turkey has recently sought to protect its domestic automotive sector from competition from China. In June, the Turkish government established an additional 40 percent import tax on cars from China, on top of the existing ten percent duty.
In July, these new additional taxes were revoked by a decree from President Erdogan for all Chinese firms that invest in Turkey. According to Bloomberg, this decree was signed shortly after Erdogan’s meeting with Xi Jinping, China’s state and party leader, at a conference in Astana, Kazakhstan.
Discussions about various tariff barriers in the USA, the EU, and Turkey should not overshadow the fact that BYD is actively positioning itself in the global market.
Originally, a particular property in Manisa province in Turkey was designated for a Turkish VW factory, which adds symbolic weight to this context. VW is facing declining capacities, and its plans for Turkey were abandoned in 2020. Meanwhile, Chinese manufacturers will now contribute to the vibrant automotive sector in Turkey, where companies like Fiat, Renault, Ford, Toyota, and Hyundai already have manufacturing facilities.
As a result of BYD’s decision, Turkey will gain 5,000 new jobs.
BYD aims to grow alongside Western partners. The automotive company intends to establish its presence in the global market through collaborations, with Uber and the supplier Forvia expected to play significant roles.
BYD is set on global expansion and is banking on partnerships to achieve this goal. The leading electric vehicle manufacturer in China has recently inked a deal with Uber to deploy 100,000 of its electric vehicles across multiple continents. Additionally, BYD will work with Forvia at its newly planned factory in Hungary, which is under construction.
Through its partnership with Uber, BYD plans to supply 100,000 electric vehicles to Uber drivers at reduced prices over the coming years, beginning in Europe and Latin America, and eventually expanding to the Middle East, Canada, Australia, and New Zealand. This initiative is anticipated to hasten the electrification of Uber’s global fleet, according to a press release from Uber.
BYD is collaborating with established names in the industry. Notably absent in the deal between the American ride-sharing service and China’s top EV manufacturer is the USA, where recent punitive tariffs on Chinese electric vehicles are exceptionally high.
For BYD, the partnership with Uber serves mainly as a marketing achievement. The Shenzhen-based car manufacturer recognizes the necessity of building its brand awareness beyond the industry in Europe and other international markets. To support this, the OEM entered into a contract with the German car rental company Sixt in 2022 for another 100,000 electric vehicles over a six-year period.
However, Sixt had to alter its strategy after the residual values of electric cars plummeted significantly in the first quarter of this year. It remains unclear whether this trend has affected Sixt’s enthusiasm for acquiring more electric cars from China.
In any case, BYD can benefit from any favorable news that bolsters its global market ambitions. For this reason, the company has also invested significantly in sponsorships for the European Football Championship and the “Copa America.”
Regarding the arrangement with Uber, Stella Li, CEO of BYD Americas, expressed her eagerness to see “our advanced electric cars soon becoming a common sight on the streets of many cities worldwide.” To realize this vision, despite the duty increase on imports of Chinese electric vehicles to 100 percent in the USA and over 27 percent in the EU for BYD, the manufacturer is currently planning or launching multiple factories, including ones in Brazil, Thailand, Turkey, and Hungary.
For the new European factory, BYD has formed a partnership with Forvia, wherein the French supplier will manufacture and operate the facility. This collaboration represents “an important milestone for both companies as we bring our partnership to Europe.”
Forvia and BYD have collaborated since 2017 through several joint ventures in various nations. One notable example is the joint venture “Shenzhen Faurecia Automotive Parts,” where Forvia holds a majority stake. Additionally, they operate several factories in China that produce car seats, electronics, interiors, and software for BYD. Recently, both companies inaugurated a new seat assembly facility in Rayong, Thailand.
During the launch of the new collaboration in Thailand, Patrick Koller, CEO of Forvia, expressed, “We are confident that this expansion will drive joint growth in the European market,” while also announcing new partnership initiatives in Hungary.
In this instance, both parties are optimistic about potential synergies. Forvia aims to counteract the decline in revenue from reduced deliveries to European car manufacturers by leveraging the success of its Chinese partner. Meanwhile, BYD expects Forvia to not only manufacture seats but also assist its entry into the European market through its established experience and industrial connections.
Forvia: emerging from a challenging phase with Chinese partners.
Recently, Forvia released its financial results for the first half of 2024 and downgraded its sales and margin projections. The company noted minimal growth in automotive production across Europe in the first six months of this year, attributing this to “the slowdown in the pace of electrification in Europe,” as explained by the Tier-1 supplier formed from the merger of Faurecia and Hella.
Forvia and Uber are optimistic about fostering successful electrification within the global automotive sector. They are placing their hopes on BYD, a frontrunner in the Chinese market. Should their strategy succeed, it could lead to a significant reshuffling of the current dynamics.
BYD’s choice to establish its new factory in Turkey is motivated by a number of strategic benefits. Turkey’s strategic location at the junction of Europe, Asia, and the Middle East offers BYD a logistical edge, making it easier to distribute products and access various markets. Furthermore, Turkey’s customs union with the European Union permits vehicles manufactured in Turkey to enter the EU market without the extra tariffs that apply to cars made in China. This is especially important given the recent EU decision to enforce tariffs reaching up to 38% on electric vehicles from China, a challenge that BYD has sidestepped by setting up production in a customs union member country.
The Manisa province, where the factory will be located, has traditionally been an automotive manufacturing center. Well-known car manufacturers such as Fiat, Renault, Ford, Toyota, and Hyundai have set up production facilities in the area, taking advantage of its strategic positioning and favorable business conditions. BYD’s new factory will join these international corporations, further strengthening Turkey’s role as a significant player in the global automotive sector.
The creation of BYD’s new facility in Turkey is anticipated to bring considerable economic advantages to the local economy. The factory is expected to generate roughly 5,000 direct jobs, offering employment possibilities and aiding in the region’s economic progress. In addition, the investment in local research and development centers will enhance Turkey’s skills in advanced automotive technologies, promoting innovation and growth in the industry.
The local supply chain is also poised to benefit from BYD’s establishment. The factory will likely ignite the growth of related sectors, generating indirect job opportunities and stimulating overall economic activity in the area. This investment is in line with Turkey’s broader economic objectives of attracting foreign direct investment and expanding its industrial sector.
Addressing EU Tariff Challenges Through Strategic Production Placement
One of the main reasons BYD opted to construct a facility in Turkey is to lessen the repercussions of the newly imposed EU tariffs on electric vehicles from China. The European Union’s decision to impose tariffs as high as 38% on Chinese-produced electric vehicles poses a significant obstacle for Chinese manufacturers. However, by manufacturing vehicles in Turkey, BYD can avoid these tariffs and sustain competitive pricing in the European market.
BYD contends with a tariff rate of 17.4% compared to its rivals, but establishing a production site in Turkey offers a long-term resolution to this issue. This strategy not only allows BYD to evade the tariffs but also positions the company advantageously in the European market, where the demand for electric vehicles is increasing due to stricter environmental regulations and consumer preferences for eco-friendly transportation options.
Future Outlook and Industry Impact of BYD’s Turkey Factory
BYD’s expansion into Turkey is part of its broader plan to establish a worldwide presence and become a leading figure in the electric vehicle sector. With recent openings in Thailand and future plans in Brazil and Mexico, BYD is swiftly creating a network of manufacturing bases in vital regions around the globe. This global growth is set to significantly boost BYD’s market share and reinforce its status as a frontrunner in the electric vehicle industry.
The new facility in Turkey is expected to manufacture between 20,000 and 25,000 vehicles for the Turkish market and export about 75,000 vehicles to the EU each year. This production capacity will assist BYD in addressing the escalating demand for electric vehicles in Europe and contribute to the region’s shift towards sustainable transportation solutions.
BYD’s presence in Turkey also has wider implications for the European automotive market. European car manufacturers will need to adjust to the heightened competition from Chinese electric vehicle producers and possibly reassess their strategies to preserve their market share. BYD’s entry into the European market via Turkey may also encourage other Chinese manufacturers to explore similar strategies, further heightening competition within the electric vehicle sector.
BYD’s investment of $1 billion in a new facility in Turkey signifies an important milestone in the company’s global expansion efforts. By leveraging Turkey’s strategic geography and customs union with the EU, BYD aims to bolster its position in the European market and manage the challenges posed by the recent EU tariffs on Chinese electric vehicles. The new plant will not only yield considerable economic advantages for the area but will also strategically position BYD in the competitive European automotive landscape. As BYD continues its global expansion, its presence in Turkey is expected to be pivotal in its quest to become a leading player in the electric vehicle market.
A prototype of what appears to be Tesla’s forthcoming robotaxi has been noticed by a Reddit user who claims to work at Warner Bros. studio in Los Angeles, where the unveiling of the so-called “Cybercab” is expected to occur on October 10.
The vivid yellow prototype shown in the attached photo seems to be a heavily disguised two-door model with headlights reminiscent of the Model 3. According to the user Boopitysmopp, who shared the image, the vehicle also features a full-width LED light strip at the back similar to the Cybertruck’s.
The entire design resembles a life-size Matchbox car, and it could simply be a poor joke, so we’re approaching this with caution. However, considering the location, the shape of the side windows, and the car’s short wheelbase together, we have reason to believe this could be Tesla’s long-anticipated self-driving cab.
Recently, Musk has shifted his focus from presenting Tesla solely as an all-electric vehicle manufacturer to discussing artificial intelligence and robotics, hinting for some time that Tesla EVs—both existing and new—could soon integrate into a global system of autonomous vehicles that transports people independently for the benefit of their owners.
Consequently, the upcoming Cybercab holds significant importance for Tesla’s vocal CEO. Could it be the major breakthrough that Musk has predicted? We remain doubtful. The company’s Autopilot and Full Self-Driving (Supervised) features are still classified as Level 2 systems on SAE’s autonomy chart. Additionally, the existing legal framework does not permit fully autonomous vehicles to operate freely on the streets and highways of the United States, indicating that more work is necessary.
That said, Tesla aims to ensure everything proceeds smoothly during next month’s event. Following a slowdown in global sales, the automaker—sorry, AI and robotics company—has been collecting mapping data from the area where the event is set to occur, according to Bloomberg and renowned Tesla hacker Green The Only.
This strategy makes sense from a performance perspective, but it contradicts many of Musk’s statements on autonomous vehicles, as he has criticized competing automakers and robotaxi services for relying on pre-existing map data to operate their driverless cars in designated geofenced regions.
We’ll have to wait and see what unfolds next month during the Tesla Cybercab reveal. If it parallels the Cybertruck reveal in 2019, you might want to set a reminder for at least three years from now to find out if the vehicle is ready for mainstream use.
Recently, Tesla CEO Elon Musk appears to be losing interest in the automobile industry. He argues that the future of Tesla does not depend on selling more vehicles, but rather on advancements in artificial intelligence and robotics. A key element of that vision involves self-driving cars that can serve as “robotaxis,” which would eliminate the need for human drivers entirely.
However, Musk seems unwilling to rely on ordinary Model 3 sedans and Model Y SUVs for his version of an Uber competitor. Tesla claims it is creating a vehicle specifically designed as a robotaxi, which Musk suggested might be named the “Cybercab” during a recent earnings call.
This is an extraordinarily ambitious initiative, one that represents the ultimate evolution of Tesla’s long-term reliance on its Autopilot and so-called Full Self-Driving systems. It is also highly untested, depends on aggressive development of entirely new technologies, relies on uncertain consumer acceptance, faces regulatory hurdles that have yet to be established, and will require Autopilot and FSD to navigate a complicated legal landscape, including a federal criminal investigation.
In essence, this could be Musk’s boldest and riskiest move up to this point—and it remains far from guaranteed. Nevertheless, let’s examine what we think we know so far, based on the company’s various statements and concept artwork that have surfaced.
What do we understand about the Tesla Robotaxi?
For at least ten years, Musk has consistently claimed that self-driving capabilities would soon arrive in Teslas. He has stated over the years that autonomous Teslas could generate considerable passive income for their owners by transporting passengers while parked. None of this has yet materialized.
In more recent years, Tesla executives have also begun discussing the concept of a vehicle specifically designed for the purpose of being a robotaxi. This means not just a standard Tesla that can drive autonomously at times, but a vehicle engineered from the ground up with that sole aim.
The robotaxi initiative has taken priority over more traditional—and arguably, wiser—projects at Tesla. In April, Reuters reported that Tesla had abandoned plans for an affordable mass-market vehicle, informally referred to as the Model 2, to focus entirely on the robotaxi. (Musk has suggested that this less expensive model is still a possibility, but it doesn’t appear to be a priority.)
When Will Tesla Unveil the Robotaxi?
In April, Musk mentioned in a post on X that Tesla would present the robotaxi on August 8. However, in July, Bloomberg stated that Tesla intended to delay the event until October. The outlet explained that Tesla teams required more time to create additional robotaxi prototypes.
During Tesla’s Q2 2024 earnings call, CEO Elon Musk confirmed that the Robotaxi reveal would take place on October 10th.
When Is the Robotaxi Expected to Be Released?
Up until now, Tesla has not succeeded in achieving fully autonomous driving in its existing vehicles. It markets a feature called “Full Self-Driving,” but this system still necessitates driver oversight and is quite far from being perfect.
Before introducing robotaxis without steering wheels, Tesla must produce reliable self-driving technology, and it’s uncertain when or if that will occur.
In response to an investor query on Tesla’s Q2 2024 earnings call, Musk explained that the company couldn’t begin offering rides to customers until Full Self-Driving could operate without supervision. In its earnings report released on Tuesday, Tesla stated that the “timing of Robotaxi deployment is contingent on technological progress and regulatory permission.”
The robotaxi’s unveiling this evening does not necessarily indicate that it is nearing production. Tesla unveiled the Cybertruck pickup in late 2019, but customers did not receive their trucks until five years later. The design for an upcoming supercar, the Tesla Roadster, was revealed in 2017 and is still yet to be launched.
What Will the Robotaxi Look Like?
Now that it has been revealed, we know precisely its appearance. However, prior to its debut, we had a general idea of what to expect. In 2022, Musk indicated that the robotaxi would forgo a steering wheel and pedals, describing its design as “futuristic.” Walter Isaacson, Musk’s biographer, noted that an early concept for the vehicle displayed a “Cybertruck futuristic feel.” This could suggest a more angular, polygonal design compared to the sleek Model 3 and Model Y.
He provided an illustration in his book, Elon Musk, showcasing a compact, two-seat vehicle with a teardrop silhouette. In April, Musk referred to the robotaxi as the Cybercab. It remains unclear if this will be the actual name, but it would be logical given its reportedly Cybertruck-inspired styling.
In a video shared on X, Tesla released additional teasers. The clip features what might be the robotaxi’s front bumper and white interior.
Previously, Tesla has indicated it would construct the robotaxi using its lower-cost, next-generation vehicle framework. Recently, however, Tesla announced it is expediting new vehicle initiatives by employing a blend of its current and next-generation technologies. It remains uncertain which technology will support the robotaxi.
How Will Tesla’s Competitor to Uber Function?
During an earnings call, Musk described Tesla’s taxi service as a blend of Airbnb and Uber. The concept is that Tesla’s fleet will consist of both its own robotaxis and vehicles from Tesla owners who decide to participate—meaning you own the car and when you’re not using it, you can “rent” it out for robotaxi service.
This is a promise Musk has made over the years in different forms. Back in 2019, he stated that by 2020, up to a million Model 3s on U.S. roads would be available as fully autonomous (SAE Level 5) robotaxis. As you may have noticed, that did not materialize.
Nonetheless, Tesla is evidently heading in that direction. In its earnings report, the automaker displayed some renderings of what its Tesla ride-hailing app might resemble.
How Does Tesla’s Robotaxi Differ from Waymo, Cruise, and Zoox?
Waymo and Cruise, autonomous taxi services owned by Alphabet and General Motors, respectively, utilize modified versions of standard electric vehicles for their operations. Waymo employs Jaguar I-Paces, while Cruise works with Chevrolet Bolts.
As they have developed their self-driving technology on public roadways, both companies have utilized safety drivers who can monitor and intervene if necessary. After a pedestrian accident last year, Cruise temporarily halted operations and is gradually reintroducing its vehicles with drivers present.
Zoox, the self-driving startup owned by Amazon, is developing a taxi service utilizing specially designed pod-like vehicles that lack steering wheels. However, it is still in the experimental stage and has not yet commenced commercial operations.
In contrast to other companies, Tesla claims it can achieve dependable self-driving capability using solely cameras. Other autonomous-driving initiatives depend on additional sensors, such as LiDAR units that employ lasers to construct a three-dimensional representation of the environment. Many experts in the field of autonomous vehicles are skeptical that Tesla’s streamlined, vision-only method will succeed.
What Obstacles Are in the Way?
How much time do you have? Primarily, the endeavor hinges on Tesla “solving” the challenge of fully autonomous driving, something that many experts caution could take decades rather than just a few years—if it’s ever achieved at all. Moreover, Tesla historically shuns autonomy technologies that other car manufacturers support, such as LIDAR. Instead, it is attempting to train AI through the use of cameras, sensors, and supercomputers.
Additionally, the United States is not prepared for a large-scale robotaxi network. Although testing and pilot programs for robotaxis are underway in around ten states, no comprehensive federal regulations exist. Issues surrounding accident liability and other concerns need to be addressed first. Furthermore, as previously mentioned, Tesla’s current Full Self-Driving (FSD) and Autopilot systems have faced scrutiny due to high-profile crashes, lawsuits, state investigations, and even a Department of Justice inquiry into whether the company misled investors and consumers about its driver-assistance features.
Why Is the Tesla Robotaxi Important?
Tesla, along with its enthusiastic investors and optimistic Wall Street analysts, believes that autonomous driving will enable the company to generate substantial revenue over time. This belief is part of the reason why Tesla has such a high valuation.
As of now, it is valued at $544 billion, which is roughly ten times the market capitalization of rivals like Ford and General Motors. A functioning robotaxi will be crucial if Tesla aims to meet the expectations set by its inflated stock price.
“The Robotaxi has no plug,” Elon Musk remarked during the event last night. Is Tesla poised to make a significant move toward inductive charging?
Well, the moment has finally arrived. Tesla unveiled its eagerly awaited Robotaxi, as well as a driverless Robovan, during last night’s presentation at the Warner Bros. Discovery studio in Burbank, California.
The event featured the usual Elon Musk speech, interspersed with random audience questions—much like when that engaging substitute teacher comes in trying to make the best of things despite lacking all the details.
The entire reveal offered minimal technical specifics, leaving us unaware of the battery capacity of the Cybercab, its charging speed, maximum speed, or whether it utilizes rear-wheel, front-wheel, or all-wheel drive. Instead, Musk concentrated on an “optimistic” timeframe projecting that the driverless two-door vehicle will be operational “by the end of 2027” and priced under $30,000. Nevertheless, it’s important to remember that the second-generation Tesla Roadster was introduced in 2017 but has yet to enter mass production.
That being said, he did share one minor yet intriguing detail: the Tesla Cybercab will charge wirelessly through inductive charging, rather than through a cable. In fact, according to Musk, it does not even possess a charging port, as he briefly mentioned during the evening’s event.
“Something we’re also doing, and it’s really about time, is inductive charging,” he stated. “So, the robotaxi has no plug. It simply goes over the inductive charger to charge. So, yeah, that’s how it should work. Thanks, everyone. I appreciate your support.”
But this encapsulates everything we know on the subject, which isn’t much. Numerous questions remain unanswered, such as how long recharging takes, the dimensions of the inductive charger, or the cost of acquiring one. These are all pertinent inquiries, especially considering Tesla’s vision of the Cybercab, which is that individuals will have the ability to purchase one—or several—and manage a personal fleet of driverless cabs from their homes. This effectively shifts the responsibility from the company to the individual while also increasing the costs associated with operating such a fleet.
Elon Musk stated that the Cybercab could serve as an excellent option for individuals currently driving for Uber and Lyft. In urban centers, many rideshare drivers already utilize electric vehicles, making them familiar with charging an EV and maintaining it. However, if they need to invest in three inductive chargers for a small fleet of Cybercabs, the upfront costs might exceed expectations.
Additionally, there’s the concern regarding charging speeds. Presently, typical inductive charging solutions generally max out at around 20 kilowatts, which is significantly less than the 250 kW peak rate available at Tesla’s own Superchargers. While there are wireless charging pad prototypes that have achieved 270 kW, they are still years away from being widely available.
So, how would this actually function? If recharging the Cybercab requires an entire night and it’s anticipated to operate throughout the day carrying passengers, it could lead to challenges. Downtime is crucial in the ride-hailing business. Unless Tesla manages to provide a wireless charging pad that is both affordable and capable of delivering sufficient power to extend range quickly, this plan may face difficulties.
Elon Musk, the CEO of Tesla, revealed that the Robotaxi will be available for purchase prior to 2027
Musk unveiled the sleek Robotaxi today at the Warner Bros. Hollywood studio close to Los Angeles. He entered the elegantly designed vehicle featuring butterfly doors, which lacks a steering wheel and pedals, and demonstrated its capabilities by driving it around the Warner Bros. lot.
Musk indicated that consumers would be able to purchase the self-driving cab for less than $30,000—an objective several automakers aspire to with their standard electric vehicles to tackle affordability issues and attract a wider array of car buyers.
This price point is notably lower than the Model 3 sedan currently on the market, which starts at over $42,000 following Tesla’s discontinuation of the base rear-wheel-drive variant due to tariffs on components sourced from China implemented last month.
It’s significant to mention that Tesla has a history of promising inexpensive EVs that turned out to be more costly. For instance, the Cybertruck was initially expected to be priced below $50,000 but now begins at $80,000. Although it’s slated for release in 2026, Musk acknowledged that he often tends to be overly optimistic regarding timelines.
If Tesla can maintain that under-$30,000 price, it could be transformative. However, before that, Tesla must demonstrate that its Robotaxi is safe and can legally operate on U.S. roads.
Various AI and autonomous vehicle experts have expressed to InsideEVs that Tesla’s strategy with its self-driving cars has flaws. Tesla solely relies on cameras and AI for the Robotaxi, while competitors like Waymo employ a more comprehensive mix of sensors, including radar and LIDAR. Moreover, there are still unresolved questions surrounding the Robotaxi’s business model and its operational framework.
We lack detailed information about the platform and how it impacts vehicle pricing, making it unclear how Tesla intends to meet that ambitious price point. However, the automaker has the ability to manufacture at scale and has experience in reducing costs.
Tesla customers might not need to wait until 2026 to experience autonomous driving. The Model 3 and Model Y are expected to receive unsupervised self-driving capabilities in California and Texas by the end of next year, subject to regulatory approval. Eventually, the Cybertruck, Model S, and Model X are also expected to gain this functionality.
The company has stated that the Cybercabs would be the “most affordable” and “cheapest to operate.” According to Musk, the average bus ride costs around a dollar per mile, while the Cybercab would charge 20 cents per mile. Considering taxes, it would likely be around 30-40 cents per mile.
Musk argued that the average car owner drives only about 10 hours a week, despite there being 168 hours in total each week. Thus, he believes that autonomy will allow individuals to save both time and money. Nevertheless, this remains theoretical for now, and it will be interesting to see how it evolves over time.
Elon Musk has introduced the long-anticipated robotaxi, known as the Cybercab, at the Warner Bros Studios in Burbank, California.
The futuristic vehicle, which features two wing-like doors and lacks both pedals and a steering wheel, brought Musk in front of a captivated audience eager to learn more about a project he regards as pivotal to Tesla’s future direction.
During the event titled “We, Robot,” the billionaire reiterated his belief that fully autonomous vehicles will be safer than those driven by humans and could even generate income for their owners by being rented out for rides.
Investors have not yet shared his excitement – Tesla’s stock price dropped after the US markets opened on Friday morning.
At 11:45 Eastern Time (16:45 BST), the value of its shares had decreased by over eight percent, trading at approximately $219.
In contrast, stocks of ride-hailing competitors Uber and Lyft, which also have ambitions in autonomous technology, were each up by as much as 10%.
Doubts are emerging regarding Mr. Musk’s timeline for the production of the Cybercab, projected to start “before 2027,” considering his history of missing deadlines.
“I tend to be overly optimistic with timelines,” he humorously remarked during the event.
He mentioned that the Cybercab – set to compete against rivals like Alphabet’s Waymo – would be priced below $30,000 (£23,000).
However, analysts question the feasibility of that target.
“Tesla will face significant challenges in offering a new vehicle at that price within that timeframe,” stated Paul Miller from Forrester research.
“Without external subsidies or Tesla incurring losses on each vehicle, launching at anything close to that price in this decade doesn’t seem realistic,” he added.
Concerns about safety were also raised.
Mr. Musk predicted that “fully autonomous unsupervised” technology would be available in Tesla’s Model 3 and Model Y in Texas and California next year “wherever regulators grant approval.”
However, such approval is anything but assured.
“It involves a large piece of machinery operating at high speeds on roads, so safety concerns are paramount,” remarked Samitha Samaranayake, an engineering associate professor at Cornell University.
Tesla’s ambitions in self-driving technology depend on cameras less expensive than radar and Lidar (light detection and ranging) sensors, which are the foundation of many competitors’ systems.
By programming its vehicles to navigate autonomously, Tesla intends to utilize artificial intelligence (AI) informed by raw data gathered from its millions of cars.
Yet the research community “is not convinced that Tesla’s approach provides the safety assurances we desire,” said Mr. Samaranayake.
The cybercab initiative has faced delays, having originally been expected to launch in August.
This summer, Mr. Musk mentioned in a post on X, formerly known as Twitter, that the delay was due to design changes he deemed important.
Tesla also appears likely to record its first-ever annual sales decline as competitors enter the electric vehicle market, even as sales have slowed down.
Despite this gloomy backdrop, Tuesday’s event was filled with spectacle, featuring Tesla’s humanoid robots dancing and serving drinks to attendees.
Mr. Musk introduced another prototype for a “Robovan” capable of transporting up to 20 passengers simultaneously.
The stylish shuttle “might become a new transportation mode that Tesla exploits in the future,” suggested Dan Ives, a managing director at Wedbush Securities, who attended the event.
Another analyst noted that the event felt reminiscent of the past while also hinting at future directions.
“Musk adeptly illustrated an ideal future for transportation that aims to save time and boost safety,” commented Jessica Caldwell, head of insights at Edmunds.
However, despite the showmanship, skepticism remains about his ability to realize the vision he presented.
“Numerous questions linger about the practical aspects of achieving this,” Caldwell added.
The progress of robotaxis has faced challenges, as driverless vehicles operated by GM subsidiary Cruise were temporarily halted in San Francisco following an incident involving a pedestrian.
Nonetheless, the sector keeps growing.
Waymo announced earlier in October that it would be adding the Hyundai Ioniq 5 to its robotaxi fleet after these vehicles complete on-road testing with the company’s technology.
Ride-hailing giant Uber also aims to incorporate more autonomous vehicles into its fleet to enhance delivery and ridesharing services for customers.
In August, it announced a multi-year partnership with driverless car developer Cruise.
Chinese tech firm Baidu is reportedly planning to expand its robotaxi division, Apollo Go, outside of China, where the vehicles are operational in multiple cities.
Eight years after pledging a self-driving taxi, Elon Musk has finally introduced the new Tesla Cybercab. It is a fully autonomous vehicle lacking a steering wheel or pedals, and you can purchase one in 2026 for under £23,000 – or so says Elon Musk.
It was revealed at Tesla’s ‘We, Robot’ event in California, alongside a new autonomous Robovan that will be able to transport up to 20 individuals or cargo across cities without a driver at the helm.
New Tesla Cybercab set to launch in 2026 for less than £23,000
The key highlight here is that individuals will have the opportunity to purchase a Tesla Cybercab, contrary to speculation that they would only operate as city-owned fleets. Its price will be below £23,000 ($30,000), and you’ll have the option to rent it out when you’re not using it to earn some extra income.
Tesla’s autonomous taxi initiative extends beyond the Cybercab, as owners of Model 3s and Model Ys will also benefit from full, unsupervised self-driving in Texas and California next year. Musk asserts that these owners will similarly be able to rent their vehicles out, just like the Cybercab.
It’s important to consider these timelines with skepticism. Elon Musk himself acknowledged that he tends to be overly optimistic regarding deadlines, having previously promised a million robotaxis on the road by 2020. He also claimed that a self-driving minibus would be available by 2019, whereas we are only now seeing the first concept.
Naturally, there are several regulatory challenges to address before a car without pedals can gain approval for use in cities worldwide. Therefore, you should expect a wait before seeing a Cybercab navigating around London.
What is the functioning of the Tesla Cybercab?
You can essentially think of it as an Uber experience minus any uncomfortable conversations. You’ll be able to summon one via an app on your phone, and it will transport you to your desired location. During the ride, you can watch movies, work on your laptop, or even take a nap.
The vehicle utilizes a set of cameras and sensors to monitor its surroundings, employing data from countless cars making millions of journeys to enhance its safety over time. This capability relies heavily on Tesla’s artificial intelligence technology rather than solely on hardware, making it cost-effective to manufacture and easy to update.
A novel feature of the Cybercab is its inductive charging capability. There are no plugs to connect, as you’ll drive over a large wireless charging pad, similar to what you might use for your smartphone, to charge the batteries. However, this should be taken cautiously since significant work on infrastructure would be required for practical implementation. A conventional plug is more likely when the vehicle enters production.
Interior of the new Tesla Cybercab
What immediately stands out about the Cybercab’s interior is the absence of a steering wheel or pedals. Tesla typically designs minimalist interiors, but this takes it to an entirely different level.
You’ll find only a large screen in the center, which can be used to watch movies, make video calls, or stream music. Compared to the Verne Robotaxi, it offers a more enclosed experience, as the Verne has a large glass area for expansive views, whereas the Cybercab is designed to create a more isolated atmosphere from the external environment.
Design of the new Tesla Cybercab
Given that this model comes from the same design team responsible for the unconventional Cybertruck, it’s expected to have a very futuristic appearance. And it does.
Its side profile is unlike anything else currently on the road, featuring a smooth, almost teardrop shape that sharply contrasts with the rounder Verne Robotaxi presented by Rimac earlier this year. The gullwing doors add a distinctive touch as well.
The car retains several design elements from the Cybertruck, but without the sharply defined angles. You’ll notice a similar full-width light bar at the front, along with a comparable bare-metal finish to the truck.
Additionally, the rear design reflects more Cybertruck characteristics, with a robust bumper and squared-off back end, and the concealed lights embedded in the bumper also pay homage to that truck design.
New Tesla Robovan has also been announced
In addition to the new Cybercab, Tesla has introduced the Robovan. This futuristic minibus operates on the same concept as the Cybercab, allowing you to summon it via your smartphone, with a capacity to accommodate up to 20 passengers.
The Robovan can also function as a cargo transport across urban areas, and its design is truly wild. Elon Musk stated that this is the design we can expect in production, and given the Cybertruck, we have every reason to believe this.
The triple light bars positioned at both the front and rear are unlike anything we’ve seen from Tesla previously, and this van breaks new ground by having no windscreen. The interior features comfortable seats that face one another, and it’s a safe bet that there will be numerous screens to entertain all passengers during their journey.
While the Tesla Robotaxi was the standout feature of Thursday night’s reveal event, the company led by Elon Musk elevated its vision of an autonomous future even further with the unveiling of the Robovan concept.
Robovan or Robobus?
“We’re going to manufacture this, and it will resemble that,” Musk told a group of exclusive invitees. The Robovan might include “van” in its name, but the massive vehicle, shaped like a toaster, appears much more akin to a bus or train car. Its art-deco style clearly evokes comparisons to classic locomotives, except the Robovan will utilize automated driving.
Similar to the Robotaxi, the Robovan is devoid of a steering wheel or pedals. Indeed, the entire interior resembles a waiting room at a dental clinic, albeit one with inviting ambient lighting. The images that Tesla shared reveal a Robovan setup for passenger transport (Musk indicated it can hold 20 people as well as be used for carrying merchandise).
There are several rows of seats that face each other, featuring large displays mounted on the walls at both ends of the cabin. One side of the Robovan is equipped with a sliding door, partly made of glass, and two glass panel vanes extend along either side of the roof.
Although we now have our first look at the Tesla Robovan, our knowledge beyond visual features and some mostly ambiguous remarks from Musk is still limited. Tesla’s CEO mentioned it could be customized for either personal or commercial purposes, but there was no information on pricing.
Importantly, a timeline for when the Robovan will enter production is not yet available, although a launch in 2027 seems plausible at the earliest, as the smaller Robotaxi isn’t expected to start production until sometime in 2026. That timeline is based on Musk’s statements, who is known for being overly optimistic about launch dates, as he acknowledged during Thursday’s event, saying, “I tend to be a little optimistic with time frames.” Naturally, Tesla must also secure regulatory approval for an unsupervised version of its Full Self-Driving (FSD) software, which will influence the future of the Robotaxi, the Robovan, and the company’s other fully autonomous vehicle initiatives.
Despite reaching impressive expectations, the unveiling of the Cybercab fell flat due to exaggerated claims and limited self-driving capabilities.
The recent launch of Tesla’s highly awaited Cybercab has ignited significant conversations within the auto industry, impacting much more than just electric vehicles. Initially seen as a revolutionary leap for urban transportation, hopes soared due to months of enthusiastic marketing by Tesla, painting a vision of fully autonomous vehicles transforming city life. However, the event left many feeling dissatisfied as reality did not meet the high expectations, causing a dip in Tesla’s stock price—though it has since recovered due to positive sales predictions.
So, what went wrong? A primary factor was the immense buzz surrounding the reveal. Teaser videos, enigmatic social media updates, and ambitious assertions about advanced technology heightened the anticipation. Tesla aimed to revolutionize urban transport, presenting the Cybercab as more than merely another electric vehicle—it was meant to be the future of ride-hailing and transportation.
When the moment finally came, hopes for a groundbreaking product were met with disillusionment. The design, rather than capturing attention with its sleek, forward-thinking look, was likened to outdated science fiction imagery. The Cybercab’s blocky design and uninspired interior appeared to lack any genuine aesthetic innovation or comfort features. Initial renders suggested elegance and ease, yet the actual reveal felt underwhelming, failing to convince anyone this was the automotive future.
Even more disappointing was the absence of advanced autonomous technology. Fans anticipated that Tesla would fulfill its dream by launching one of the first fully self-driving, commercially viable vehicles. Instead, the Cybercab displayed features similar to those found in many high-end cars today—lane-keeping assistance and adaptive cruise control—while lacking true self-driving functionality. By not delivering on its automation promises, Tesla has set itself apart from rivals like Waymo, who are viewed as closer to achieving fully autonomous vehicles.
This technological inadequacy was glaringly perceived in financial markets. Investors reacted adversely to the announcement, as it underscored the disparity between expected advancements and the vehicle’s genuine capabilities. While CEO Elon Musk asserted Tesla was only years away from achieving full autonomy, many people now view this timeline as overly optimistic. With regulatory approval for self-driving vehicles requiring extensive testing and proof of safety, Tesla’s goals seem even less attainable.
Another lingering concern is the expected pricing structure of the Cybercab. With hopes for affordability, analysts were surprised by its features, which rendered the vehicle more similar to high-priced luxury items. The absence of a steering wheel or pedals raised questions about how the Cybercab’s pricing model would compete with more economical options like the forthcoming ‘Model 2’. This discrepancy presents considerable challenges, especially as the broader electric vehicle market copes with its pricing issues.
The crucial question is: does the Cybercab truly address the needs and desires of urban markets? Critics argue it resembles more of an extravagant tech gadget than a solution to urgent urban transportation problems—such as reducing traffic congestion or offering practical, affordable alternatives for underserved city inhabitants. The reveal suggested that the Cybercab was aimed more at technology elites than at resolving real-life urban transport issues.
In summary, the market reaction highlights the potential risks of excessively promoting products before they are ready. While the idea of electrified, self-driving urban transport vehicles is undeniably fascinating, the Cybercab reveal has made it evident just how far Tesla still has to go to achieve this goal effectively. The disconnect between public enthusiasm and product capability serves as both a cautionary tale and a learning experience for Tesla and the broader automotive sector as they navigate this dynamic and ever-evolving technological landscape.
Elon Musk, the leader of the American electric vehicle and clean energy company Tesla, is known for making bold statements and promising innovative futures. At the recent “We, Robot” event, Musk showcased a line of electric robotaxis for the company, including the Cybercab.
However, despite the presentation’s flashy nature, filled with futuristic designs and staged sci-fi battles, several critical points were overlooked. What other details did you miss during the presentation apart from the shiny robots and grand promises?
Timeline troubles: Why the Cybercab launch is still uncertain
Their suggestion for Musk to introduce a sub-$30,000 Cybercab devoid of a steering wheel or pedals seems promising, but the timing of its release remains unclear: Musk initially indicated that production would commence in 2026 and later revised it to before 2027, acknowledging that he had set overly ambitious targets in past years. If that’s true, it implies that Tesla has missed this target, particularly concerning its robotaxi initiative.
Back in 2019, Musk confidently asserted that fully self-driving robotaxis would be operational by 2020. Fast forward to now, and while advancements have been made, completely unsupervised autonomous vehicles have yet to emerge. Such fluctuations in timelines erode the confidence that investors and consumers place in the Cybercab being functional when expected. Even the most dedicated of Musk’s supporters can no longer overlook the evident production issues, which threaten the credibility of his new vision.
Regulatory challenges: What obstacles is Tesla facing in this venture?
As Musk envisions a future with the vehicle taking full control, regulation becomes one of the major challenges for Tesla’s robotaxi aspirations. Numerous US states and various international countries have stringent legal frameworks surrounding AV technology, particularly vehicles lacking traditional components like steering wheels and pedals.
It seems rather bold, if not impractical, for Tesla to aim for a fully driverless vehicle by 2026 and to suggest starting tests in California and Texas. These regulatory challenges were downplayed during the presentation. There was no mention of the extensive testing, safety certifications, and legal compliance that Tesla will encounter.
Musk also omitted any discussion about investigations into Tesla’s Full Self-Driving (FSD), which has been linked to several accidents. Thus, the path to securing approvals could take significantly longer than Musk’s predicted timeline.
Safety concerns and technology: Are they overhyping the features of the Cybercab?
Undoubtedly, the most evident and perhaps significant concern during the Tesla presentation revolved around safety. Musk claimed that self-driving vehicles would be “10, 20, 30 times safer than humans,” referencing data from millions of miles driven by Tesla.
However, the presentation lacked crucial details on how Tesla plans to mitigate accidents, especially in light of recent FSD concerns. What Musk presented as Tesla’s edge – utilizing artificial intelligence and cameras instead of expensive lidar – has sparked considerable debate.
Lidar, which employs lasers to map the surroundings of the vehicle, is deemed much more reliable for fully autonomous cars. By neglecting this technology, Tesla leans on its camera-based approach, a choice many analysts consider unwise and premature.
Additionally, Tesla’s Full Self-Driving system has encountered regulatory challenges and ongoing complaints. Some accidents, including fatal incidents, have been attributed to the autopilot and FSD systems.
Regulatory bodies are still investigating whether Tesla is sufficiently preventing driver distractions while users engage with the car’s semi-autonomous systems. However, there was no mention of these concerns in Musk’s presentation, leaving many to question just how secure the future of robotaxis will truly be.
Is Tesla’s vision realistic, or just another hype?
Elon Musk excels in public relations and has a knack for making people believe in the future of self-driving vehicles and robots. Nonetheless, when it comes to Tesla’s robotaxi project, the presentation fell short of impressive. Several critical factors, including the production timeline, regulatory hurdles, safety issues, and business model, play a significant role.
As a result, many investors and analysts remain doubtful. While it’s easy to get caught up in the concept of affordable robotaxis, actualizing this vision is far more challenging. Unless these hurdles are addressed, the Tesla robotaxi may remain more of a promotional concept than a tangible product, at least for the time being.
The future Musk envisions may be incredible, but achieving it will require more than just flash and appeal. The robotaxi transformation may not be far away, but it will still take time before it becomes a reality, particularly until safer technologies are developed and regulations governing these vehicles are clarified.
Musk expressed during the analyst call that he is “confident” Cybercabs will achieve volume production by 2026.
“I am confident that Cybercab will reach volume production in ’26, not just begin production, but achieve volume production in ’26,” he mentioned.
The company must obtain regulatory approval for the Cybercab’s operation, and Musk anticipates receiving this approval next year in Texas and California, which would also enable the launch of its ride-hailing application. In discussing Tesla’s vehicle sector, Musk projected a 20% to 30% increase in vehicle sales next year “despite negative external factors.”
Tesla aims to manufacture at least 2 million Cybercabs annually
Musk stated in the call that Tesla intends to produce a “significant” number of robotaxis each year
The Tesla CEO noted, “We’re targeting at least 2 million units a year of Cybercab. This will occur in more than one factory, but I believe it’s at a minimum of 2 million units yearly, potentially up to 4 million in the end.”
Musk tempered his statement, referring to these figures as his “best estimates.”
Musk indicated that the Cybercab will be priced at “approximately $25,000.”
When Musk initially unveiled the Cybercab at the “We, Robot” event, he mentioned that the company projected a selling price of “below $30,000.”
During Wednesday’s earnings call, Musk revised that to a cost of “approximately $25,000.” “What we’ve designed is optimized for autonomy,” Musk said. “It will cost around 25K, so it is a 25K vehicle. And you can, you will be able to purchase one exclusively if you wish. It simply won’t include steering wheels and pedals.”
Tesla will not offer a Cybercab variant featuring a steering wheel or pedals.
If you were expecting a more conventional sub-$30,000 Tesla model with a steering wheel and pedals, the Cybercab will not have that.
“So, I believe we’ve made it clear that we — the future is autonomous,” Musk said when asked about the timeline for a $25,000 non-robotaxi vehicle.
Musk described a regular $25,000 model as “pointless,” asserting that a “hybrid, manual, automatic” vehicle would not be “as good” as an autonomous version. He stated that Tesla is developing a vehicle that is “optimized for autonomy.”
Musk described the experience of riding in the Cybercab as akin to being in “a personal movie theater.”
Musk indicated that Tesla will continue to enhance the offerings on Tesla car displays, and once full autonomy is achieved, “you can do anything you want” while in the vehicle because it will be self-driving.
He provided examples such as browsing the internet, interacting with AI, watching films, playing video games, or engaging in some “productive tasks.”
“So that’s why the Cybercab features a large screen and a quality sound system so you can watch a great movie,” Musk explained.
Musk described the machine creating the Cybercab as “revolutionary.”
He said Tesla is “designing a lot of high volume production,” as well as the “machine that builds the machine,” which he labeled as “revolutionary.”
“It’s not merely a groundbreaking vehicle design, but also a revolution in vehicle manufacturing accompanying the Cybercab,” Musk stated. “The cycle time, like, the units per hour of the Cybercab production line is — this is truly something exceptional.”
Musk mentioned that the machine constructing the machine is designed to be five times more efficient than a conventional factory regarding cycle time.
Tesla asserted that it has effectively combined factors such as who will manufacture the vehicle, its production location, shipping methods, and assembly processes to create “the most efficient factory possible.” This will be evident in Tesla’s capital expenditure efficiency once implemented, in addition to the selection of parts and overall performance, as highlighted by the company during the call.
It appears that discussions, debates, and subtle signals related to generative AI are everywhere these days. The automotive industry, like many others, is exploring how this technology can be utilized in the future – whether it’s in the design and production of cars or in enhancing the driving and passenger experience.
What is generative AI exactly?
It is a set of algorithms that can be utilized to create new content, such as text, images, and audio. Tools like ChatGPT and Google’s Bard respond to user prompts in text form. DALL-E, a tool recently integrated into Microsoft’s Bing search engine, is one of the numerous generative AI programs capable of generating images.
These tools are increasingly prevalent in the automotive sector, primarily to enhance a car’s infotainment (as opposed to functions directly related to driving). DS initiated a trial to incorporate ChatGPT into its Iris infotainment system, while Mercedes and Volkswagen are taking a step further by integrating the technology into all their cars operating on MB.OS and MIB4 operating systems, respectively. Renault’s new 5 EV will also include a voice assistant named Reno that utilizes AI algorithms.
‘In this world, hype comes and goes – but this is not the case with AI,’ says Mercedes’ chief technology officer, Markus Schäfer. ‘It got more intense with the introduction of ChatGPT and there is much more focus now. We’re taking all the learnings that we have over the last nine months with ChatGPT in the car and what we have announced is the next development of that.’
What are the advantages?
According to many car manufacturers, having generative AI integrated into your car allows for greater personalization and a natural mode of communication between humans and machines. For instance, DS states that its updated Iris voice assistant can act as a travel companion, suggesting good restaurants at your destination or entertaining your bored children with stories.
AI will also be utilized in the new Arene operating system from Toyota/Lexus, set to be featured in production cars from 2026, promising a much more personalized infotainment experience.
Behind the scenes, AI is being employed in production, with car manufacturers claiming benefits in terms of both cost and the environment. At its Rastatt plant, Mercedes is using AI to simulate a production line for its next-generation MMA platform-based EVs without disrupting the ongoing manufacturing of the current A-Class, B-Class, GLA, and EQAs. In the paint shop, it has reduced the energy usage of top layers by 20 percent.
Renault Group boss Luca de Meo points out: ‘We have developed AI tools to efficiently fill our trucks and provide optimized routes, allowing us to use 8000 fewer on the road and avoiding around 21,000 tonnes of CO2.’
However, there are risks. Apart from putting human jobs at risk, generative AI tools frequently face the risk of copyright infringements or simply being inaccurate.
‘It’s not something you implement in a car and then just leave it,’ says Schäfer, the Merc tech chief. ‘If you sit in a car and ChatGPT tells you something that’s absolute nonsense, you might be exposed to product liability cases.’
So car manufacturers are proceeding with caution. But they are certainly moving into this transformative new era.
AI is transforming the automotive industry by enhancing both driving experiences and safety protocols. From personalized voice assistants to advanced driver assistance systems, AI technologies are reshaping the future of smart cars;
Analyzing driver behavior using AI algorithms contributes to increased road safety and improved driving habits. AI-powered safety features like autonomous emergency braking and lane departure warning systems mitigate accidents and enhance road safety.
We are gradually becoming accustomed to artificial intelligence appearing in our daily lives and increasingly being found in cars – either under the hood or in the cabin. The role of artificial intelligence in the automotive industry is extremely important because it is already being discovered how to use it to improve safety protocols, personalize the driver’s experience, and is crucial for the development of self-driving technology. The article will briefly explore AI technology and its impact on the future of innovative solutions in the automotive industry.
Before we discuss what is likely the most crucial subject related to AI and intelligent automobiles, which is safety, it’s important to note how the technology enhances drivers’ enjoyment. This pertains to a sophisticated voice assistant technology.
By integrating AI-based voice assistants in vehicles and utilizing AI algorithms to monitor and adjust driver behavior, cars are becoming increasingly personalized and responsive to the driver’s requirements.
Analyzing driver behavior
Understanding human behavior while driving is being developed using machine learning algorithms. While monitoring has negative connotations, the analysis of driver behavior in connected cars can significantly improve road safety.
This is a necessary process – the World Health Organization has presented data indicating that by 2030, the fifth leading cause of death worldwide will be road accidents. The primary cause of accidents is and is expected to be human behavior such as reckless driving (speeding, driving under the influence of alcohol or drugs), fatigue, anger, and carelessness.
AI technologies make it possible to track and analyze the driver’s facial expressions. This enables the analysis of patterns in how a driver behaves in stressful situations, how they react to them, and how they drive when tired or drowsy. Research suggests that an aggressive and reckless driver is likely to change their driving style if they know they are being observed. However, these solutions (e.g. inertial measurement units – IMUs) are not standard and are typically implemented in more expensive cars.
This thorough analysis of driver behavior not only provides insights into driving habits but also offers feedback and real-time alerts to promote better, safer, and more eco-friendly driving practices. It is also worth noting that behavior analysis can also be directed towards pedestrians, which could contribute to the development of improved alarm systems in cars like ADAS.
Smart Voice Assistants
Modern vehicles are quickly integrating smart voice assistants as an essential component. These AI-powered voice assistants enhance the driving experience by providing hands-free control of functions such as making phone calls, navigation, entertainment (e.g. setting music, audiobooks), and scheduling vehicle services.
However, despite the high adoption rate, car voice assistants face challenges such as accurate speech recognition in the noisy environment of a moving vehicle and difficulties in understanding different accents and slang. As AI technology continues to advance, improvements in natural language processing are gradually addressing these challenges, paving the way for even more advanced and intuitive voice assistants in the future.
Vehicle safety with AI
Artificial Intelligence is driving a quiet revolution in vehicle safety. It is the driving force behind advanced driver assistance systems, autonomous emergency braking, and lane departure warning systems that are reshaping our perception of vehicle safety. The increasing role of AI in vehicle safety represents significant technological advancements and demonstrates the commitment of automobile manufacturers to consumer safety.
AI in the automotive industry is not only about ensuring safety — it also aims to improve overall driving experiences. By leveraging real-time data analysis and decision-making capabilities, AI is steadily transforming the automotive sector, making our roads safer and our journeys more enjoyable.
Advanced driver assistance systems
We have previously discussed ADAS in the context of UX design in in-car systems, but how is this technology related to AI? First, let’s list the sensor technologies included in ADAS:
cameras;
GPS/GNSS;
radar;
sonar;
light detection and radar (LIDAR).
ADAS functionalities encompass various passive and active systems. Passive systems alert the driver with sounds or lights, while active systems autonomously perform actions such as emergency braking. Thanks to AI, or more specifically the sub-technology of Machine Learning, it is possible to prevent occurrences such as pedestrian and object detection, thereby enhancing scene understanding and ensuring safe navigation. The ML algorithm enables computers, based on data and patterns, to learn and extract crucial insights about potential hazards that a driver may encounter.
Autonomous Emergency Braking systems
Another essential safety feature that utilizes artificial intelligence is autonomous emergency braking (AEB) systems. These systems use sensor data from radar, cameras, and lidar to identify potential head-on collisions. By gauging the distance to an object in front and calculating the relative speed of both vehicles, the system assesses such risks. If the driver fails to react promptly, AEBS will automatically engage emergency brakes to prevent or reduce an impending collision.
Lane Departure Warning Systems
Another technology that ensures safety and integrates with AI is the LDW systems – a system that alerts drivers if they have veered across the lines on highways and arterial roads. It employs artificial intelligence in combination with sensor networks and computer vision to effectively decrease road accidents and enhance road safety.
These systems employ algorithms (e.g. CNN, BING or PCANet) to recognize and monitor road markings. LDWS delivers reliable and precise lane tracking and departure warnings, adapting to various conditions such as different weather and times of day.
Impact of AI on car manufacturing processes
Artificial Intelligence not only changes car functionality but also revolutionizes car production processes. From optimizing production processes and quality control to improving supply chains, artificial intelligence is transforming the automotive manufacturing sector.
The integration of Artificial Intelligence (AI) in manufacturing processes has led to a significant transformation in the industry. By utilizing AI technologies such as machine learning and predictive analytics, manufacturers can optimize production processes, improve quality control, and streamline operations. AI-powered systems can analyze extensive amounts of data in real-time, enabling proactive maintenance, predictive modeling, and efficient resource allocation. This not only enhances overall operational efficiency but also reduces downtime, minimizes waste, and improves product quality. The implementation of AI in manufacturing is paving the way for smart factories that are agile, adaptive, and responsive to changing market demands.
Influence of AI on supply chain
AI’s influence extends beyond vehicle operation and manufacturing to supply chain management. By predicting automobile demand, managing intricate supply networks, and optimizing inventory levels, AI is revolutionizing supply chain management in the automotive industry.
AI is transforming supply chain operations by enabling predictive analytics, demand forecasting, and real-time decision-making, optimizing inventory levels, streamlining logistics processes, and overall increasing supply chain efficiency. All of this is accomplished using algorithms that enable the analysis of vast amounts of data to identify patterns and trends. This, in turn, allows companies to achieve greater accuracy in demand planning, shorten lead times, and reduce risks and errors.
Future of AI in automotive
The above article depicted the current state of the automotive industry and its integration with AI technologies. While it is challenging to predict the future, one thing is certain – the future belongs to algorithms, data analysis, and machine learning. All of this is aimed at enhancing the driver’s experience, including autonomous driving technology and electric cars, and optimizing production in the automotive industry.
Summary
Artificial Intelligence (AI) is reshaping the automotive industry, enhancing both driving experiences and safety protocols. From personalized voice assistants to advanced driver assistance systems, AI technologies are transforming the future of smart cars. By analyzing driver behavior, enhancing safety features, and optimizing manufacturing processes, AI ensures a safer, more efficient, and personalized driving experience. As the industry evolves, AI-driven innovations promise to revolutionize car functionality, production processes, and supply chain management, paving the way for a future of autonomous driving and electric vehicles.
How is AI transforming the automotive industry?
AI is being used in the automotive industry to improve supply chain management, provide predictive analytics, and develop driver assist programs, autonomous driving, and driver monitoring technologies. These technologies, using machine learning algorithms, enable the extraction of valuable data that can be utilized to enhance road safety.
What is the future of AI cars?
The future of AI cars holds the potential for fully autonomous vehicles, predictive maintenance, and advanced safety features, offering a personalized driving experience tailored to individual preferences. It is anticipated that fully autonomous cars will become a common sight on the roads within the next decade, driven by advancements in machine learning and deep learning algorithms.
How can AI improve vehicle safety?
AI improves vehicle safety by utilizing Advanced Driver Assistance Systems, Autonomous Emergency Braking, and Lane Departure Warning Systems to decrease accidents and enhance road safety.
How does AI contribute to self-driving cars?
AI is integrated into self-driving cars through the use of machine learning and computer vision technologies, enabling the vehicles to comprehend their surroundings and make decisions, allowing them to function without human intervention.
In recent years, a potent influence has emerged to further transform this area: artificial intelligence (AI). AI is steering revolutionary changes in the automotive sector, impacting vehicle design, production, safety, autonomy, and the overall driving experience.
AI-Powered Design and Manufacturing
AI has played a significant part in vehicle design and manufacturing by streamlining processes and boosting efficiency in various ways.
AI algorithms optimize vehicle design by examining extensive datasets. They consider aerodynamics, weight distribution, and safety to create vehicles that are more streamlined, secure, and fuel-efficient.
AI aids in predicting disruptions in the supply chain and improving inventory management, reducing production delays and costs, resulting in a more efficient manufacturing process.
AI computer vision systems offer unparalleled precision in inspecting vehicles for flaws. They can identify even the smallest imperfections in real time, assuring that only flawless vehicles are delivered to customers.
AI-Enhanced Safety and Driver Assistance
One of the most notable advancements in the automotive sector is AI’s role in enhancing vehicle safety and driver assistance through developments such as:
AI algorithms analyze sensor data, including radar and cameras, to identify potential collisions. In critical situations, these systems can activate the brakes or take evasive action to prevent accidents.
AI-powered adaptive cruise control maintains a safe distance from the vehicle ahead and adjusts speed according to traffic conditions.
AI-based lane-keeping systems help vehicles remain within their lane, reducing the likelihood of unintended lane departures.
Autonomous driving is the ultimate objective of artificial intelligence in the automotive industry. While fully autonomous cars are still under development, many vehicles now include semi-autonomous features such as self-parking and highway autopilot.
AI and the In-Car Experience
AI is revolutionizing the in-car experience for both drivers and passengers.
AI-powered voice assistants such as Siri and Google Assistant allow hands-free control of navigation, music, and calls in modern vehicles.
AI algorithms personalize infotainment recommendations based on user preferences, enhancing the driving experience.
Predictive Maintenance: AI can anticipate vehicle maintenance requirements, minimizing downtime and repair costs.
How is Artificial Intelligence Transforming the Future of the Automotive Industry?
The automotive industry is heavily investing in AI, leading to a significant shift in the future of automobiles. Automotive companies are utilizing machine learning algorithms to enhance the quality of data needed for autonomous driving systems, enabling self-driving vehicles to operate more accurately and safely. AI is also assisting the automotive industry in transitioning to eco-friendliness, with companies producing electric vehicles using AI technology.
These recent advancements underscore the substantial impact of AI on the automotive industry. Furthermore, AI plays a crucial role in enhancing driver convenience and safety. AI-powered features such as automatic braking and blind-spot detection are becoming standard, making driving more convenient and reducing the risk of accidents. As artificial intelligence evolves, it promises a future in which vehicles are not only smarter, but also safer and more efficient.
Embracing 5G Connectivity: 5G is a recent internet innovation with the potential to revolutionize the automotive sector. Its connectivity capabilities can establish a digital bridge, enabling devices and individuals to communicate while on the move. When combined with AI, it can offer an enhanced driving experience. The vehicle’s entertainment system can be transformed into an informative system that responds to drivers’ voice commands and provides technical information about the vehicle’s performance and fuel level.
AI Integration in Automotive Operations: Artificial intelligence (AI) can automate various manufacturing and sales processes. It can provide salespeople with valuable data about potential clients’ journeys, enabling them to optimize their sales processes, increase conversion rates, and reduce costs.
AI-enabled cars can identify and forecast traffic patterns, enhancing safety during road trips and commutes.
Personalized Vehicle Experiences: Artificial intelligence in automobiles allows for a personalized driving experience. For instance, Porsche offers a “Recommendation Engine” powered by machine learning that suggests vehicle packages based on individual driver preferences.
The automotive industry acknowledges the potential of AI to stimulate innovation. AI is currently utilized in designing and developing vehicle components and engines, leading to unforeseen solutions. This indicates that future AI-driven innovations could surpass the perceived limitations of the automotive industry.
Advantages of AI in the Automotive Sector
When appropriately integrated into the automotive industry, AI can offer numerous benefits. It can unveil new opportunities and possibilities. The exploration of new approaches can uncover previously undiscovered advantages.
Enhanced Safety: AI systems such as lane departure warnings, autonomous emergency braking, and adaptive cruise control enhance road safety by warning drivers about potential dangers and implementing precautionary measures, thereby reducing accidents.
AI and IoT facilitate predictive maintenance by monitoring vehicle data and notifying managers about potential issues before they escalate, improving vehicle performance and reducing maintenance costs. AI-powered infotainment systems provide personalized experiences for passengers and drivers, including intelligent voice assistants that understand regional languages, play music, offer guidance, and adjust vehicle settings, leading to safer and more enjoyable journeys.
Autonomous Driving: AI-powered autonomous vehicles have the potential to revolutionize the automotive industry by reducing accidents, enhancing mobility, and improving traffic flow, particularly for individuals with mobility challenges.
AI optimizes manufacturing processes, enhances supply chains, and identifies potential vehicle issues, resulting in cost savings across operations, including design and manufacturing.
Overall, AI advancements have significantly contributed to the growth of the automotive industry, transforming how we interact with and drive vehicles.
Challenges and Ethical Considerations
While the benefits of AI in the automotive industry are evident, challenges and ethical considerations need to be addressed.
Data Privacy: AI systems in vehicles gather substantial amounts of data, including location and driver behavior. Ensuring the privacy and security of this data is crucial for maintaining consumer trust.
Robust regulatory frameworks are essential for the development and deployment of self-driving vehicles. Governments worldwide are formulating laws to address the safe use of AI in transportation.
The rise of autonomous vehicles may lead to job displacement in driving-related industries such as trucking and delivery. Preparing the workforce for these changes presents a significant challenge.
Ethical Dilemmas: Autonomous vehicles may encounter ethical dilemmas in situations where human lives are at stake. Decisions regarding who or what to prioritize in such situations need to be made.
AI has already brought about significant changes in the automotive industry, and its impact will only continue to grow in the future. From enhancing safety and convenience to reducing emissions and improving energy efficiency, AI is set to transform how we engage with and perceive automobiles.
To maximize the benefits of AI in the automotive industry while addressing the associated challenges, stakeholders such as automakers, governments, and consumers must collaborate. Establishing strong regulations, safeguarding data privacy, and facilitating workforce transition will be crucial as we navigate this exciting and transformative era of AI in the automotive industry.
As technology progresses and artificial intelligence (AI) becomes increasingly integrated into vehicles, we can envision a future in which our cars are more than just means of transportation but also intelligent, eco-friendly companions that enhance our lives while contributing to a more sustainable and safer world. The future of AI in the automotive industry is promising, and it promises to be an exhilarating journey for everyone.
As technology becomes increasingly prevalent in our world, the global market is experiencing the transformative rise of artificial intelligence (AI). This advanced technology is reshaping various industries, with the automotive sector leading the way in this revolution. Major automotive manufacturers are integrating AI into their operations to harness its potential for gaining a competitive advantage and providing customers with exceptional, personalized experiences.
The influence of AI in the automotive industry extends beyond manufacturing and is also revolutionizing automotive retail. This article delves into the impact of AI on the automotive industry, highlighting its technological progress and advantages.
Impact of AI on the Automotive Industry
The impact of AI on the automotive industry is significant, signaling a new era of innovation and effectiveness. AI has transformed traditional automotive methods by optimizing manufacturing processes, reducing expenses, and improving supply chain management. By analyzing vehicle data and sales figures, AI enables precise modeling and regulation of production processes with unparalleled accuracy and real-time insights.
AI’s contributions to the automotive sector also extend to enhancing safety, intelligence, efficiency, and sustainability, fundamentally transforming the industry landscape.
AI in the Manufacturing Process
Before the advent of AI, automobile manufacturing heavily relied on manual labor, resulting in time-consuming production and increased costs. Challenges such as collecting data on vehicle performance and detecting faults posed significant obstacles. However, AI has revolutionized this process by automating manufacturing through robotics and facilitating real-time data collection via AI software, streamlining production and enhancing quality control.
Enhanced Experiences with AI
The integration of AI technology into vehicles has significantly enhanced the driving experience. Real-time monitoring systems, previously unavailable, are now standard, thanks to AI advancements. Automotive companies continuously innovate by adding new AI-driven features to their vehicles, including damage detection and preventive maintenance alerts, setting new trends in the auto industry.
Improved Dealership Services
Traditionally, car dealerships operated in a straightforward, albeit outdated, manner, with negotiations and vehicle showcases occurring in person. AI has also revolutionized this area. Machine learning and AI-powered chatbots have introduced round-the-clock customer service, offering detailed information to potential buyers. Furthermore, AI can provide digital and virtual vehicle inspections, using virtual car studios to offer a more immersive and informative customer experience.
Revolutionizing Dealership Marketing
AI is also changing how dealerships market their vehicles, introducing a level of personalization and efficiency that was previously unattainable. By leveraging data analytics and machine learning, dealers can now predict customer preferences and tailor their marketing efforts accordingly. AI-powered tools analyze customer data, including past purchases and online behavior, to create highly targeted marketing campaigns. This approach not only enhances customer engagement but also significantly improves conversion rates.
Moreover, AI enables dealerships to optimize their inventory management based on predictive trends, ensuring they stock vehicles that meet current market demand. As a result, AI in the automotive industry is not just changing the manufacturing and customer service landscape but is also reshaping dealership marketing strategies to be more data-driven and customer-focused.
An Overview of the Future of AI in the Automotive Industry
Initially, many industries, including automotive, were cautious about how AI could drive innovation. However, over time, AI has emerged as a cornerstone of technological advancement, catalyzing significant changes across the global market. Today, AI plays a pivotal role in fostering innovation in the automotive industry, indicating a shift towards more autonomous, efficient, and personalized automotive solutions.
For those who are new to the concept, AI refers to the ability of machines or computers to autonomously perform tasks such as learning, designing, and decision-making without human intervention.
The introduction of AI in the automotive industry has paved the way for groundbreaking changes and innovations. Technologies such as machine learning, computer vision, and robotics have empowered manufacturers to produce vehicles that are not only technologically superior but also safer and more efficient. AI has thus been instrumental in simplifying the manufacturing process and introducing innovative automotive solutions, marking a significant leap towards the future of mobility.
How AI is Revolutionizing the Future of the Automotive Industry
The automotive industry is a major investor in artificial intelligence (AI), signaling a significant shift toward the future of the sector. Through the use of machine learning algorithms, automotive companies are improving the quality of data needed for autonomous driving systems. This advancement ensures that self-driving vehicles operate with exceptional accuracy and safety, ushering in a new era of mobility.
Improving Safety
AI’s advanced learning capabilities play a key role in developing vehicles that can predict traffic patterns and potential dangers. This predictive ability helps drivers navigate more safely, reducing risks and enhancing road safety. The automotive industry’s focus on AI-driven safety features represents a crucial step toward reducing accidents and ensuring passenger safety.
AI in the Production Process
AI is facilitating the transition to environmentally friendly practices and the manufacturing of electric vehicles. This shift is not only important for the environment but also aligns with the current trend toward sustainability. AI’s impact on automotive manufacturing is reshaping the future of the industry, demonstrating its potential to create smarter, safer, and more efficient vehicles.
Furthermore, AI enhances driver convenience and safety through features such as automatic braking and blind-spot detection, now becoming standard. These advancements are essential for reducing accidents and enhancing the driving experience, indicating a future where vehicles are increasingly autonomous and user-focused.
AI in Automotive Processes
AI is revolutionizing automotive operations, from production to sales. By providing sales teams with detailed customer journey data, AI enables more efficient sales processes and improved conversion rates. This integration of AI into operational strategies significantly reduces costs and enhances customer engagement, highlighting the technology’s crucial role in optimizing automotive business models.
Personalized Driving Experience
AI is redefining the driving experience, allowing for customization that reflects the driver’s preferences and lifestyle. Major automotive companies, such as Porsche, are leading the way in using “Recommendation Engines,” which suggest vehicle configurations tailored to individual tastes. This level of personalization demonstrates AI’s ability to make driving a more personalized and expressive experience.
Exceeding Boundaries
The automotive industry recognizes AI’s potential to drive significant innovation, from vehicle design to engine optimization. AI’s influence extends beyond current manufacturing practices, uncovering new possibilities and surpassing existing limitations. The future of the automotive sector is set to surpass today’s boundaries, driven by the relentless advancement of AI technology.
The Future of Customer Data Platforms (CDPs) in the Automotive Industry
As the automotive industry continues to evolve under the influence of AI, the role of Customer Data Platforms (CDPs) is becoming increasingly important. CDPs, which consolidate customer data from multiple sources into a single, comprehensive database, are poised to transform how automotive companies understand and engage with their customers.
Enhanced Customer Understanding and Personalization
CDPs offer unparalleled levels of personalization and customer engagement. By leveraging CDPs, automotive brands can gain a complete view of their customers, enabling them to deliver personalized marketing messages, tailor vehicle recommendations, and enhance the overall customer journey. This deep level of insight ensures that customers receive offers and communications that are relevant to their specific needs and preferences, boosting satisfaction and loyalty.
Streamlining Operations and Improving Efficiency
Beyond marketing, CDPs are set to streamline automotive operations, from supply chain management to after-sales support. By providing a unified view of customer interactions and preferences, CDPs help automotive companies optimize their inventory, predict market trends, and improve the efficiency of their sales processes. This integration of customer data across the enterprise allows for more agile decision-making and a more cohesive customer experience.
Driving Innovation in Product Development
The insights derived from CDPs are essential for driving product development and innovation within the automotive industry. Understanding customer preferences and behavior patterns enables automotive manufacturers to design and develop vehicles that meet emerging market demands, including features, technologies, and designs that align with consumer expectations. This customer-centric approach to product development ensures that automotive companies remain competitive and relevant in a rapidly changing market.
8 Applications of AI in the Automotive Sector
The automotive industry benefits from AI in several key ways, as illustrated by the following pivotal use cases:
Systems for Assisting Drivers
Artificial Intelligence plays a crucial role in Advanced Driver Assistance Systems (ADAS) in the automotive sector. These systems, enabled by AI, utilize sensors for tasks such as providing steering assistance, detecting pedestrians, monitoring blind spots, and alerting drivers promptly. This technology is essential for preventing traffic incidents and improving road safety.
AI-Powered Marketing for Car Dealerships
AI is transforming marketing strategies in automotive dealerships, enabling a more focused, efficient, and personalized approach to reaching potential buyers. By utilizing AI algorithms, dealerships can analyze customer data, online behavior, and purchase history to create highly tailored marketing campaigns.
This technology enables dynamic customization of advertisements, email marketing, and even direct mail, ensuring that marketing messages are personalized according to each customer’s specific interests and needs.
Segmentation and Targeting of Customers: AI tools segment customers based on various criteria, such as demographic data, purchasing behavior, and engagement history, allowing dealerships to target specific groups with customized promotions.
Predictive Analysis for Lead Scoring: Through predictive analytics, dealerships can prioritize efforts on leads with the highest potential for sales by scoring them based on their likelihood to convert.
Chatbots for Engaging Customers: AI-powered chatbots provide instant communication with potential customers, answering queries, scheduling test drives, and even facilitating initial sales discussions, thereby enhancing customer service and engagement.
The integration of AI into dealership marketing not only streamlines the process of reaching out to potential customers but also significantly increases the effectiveness of marketing efforts, resulting in higher conversion rates and improved customer satisfaction.
Self-Driving Vehicles
AI is at the core of autonomous vehicles, empowering them to perceive their environment, make informed decisions, and navigate roads with minimal human input. Industry leaders such as Tesla and Waymo are leading the way in using AI to advance autonomous vehicle technology.
Monitoring of Drivers
In-cabin monitoring systems utilize AI to assess driver behavior, including detecting drowsiness and distractions. These systems play a crucial role in ensuring driver alertness and overall vehicle safety.
Management of the Supply Chain
By analyzing data, AI predicts demand for various vehicle models, optimizing production schedules and reducing inventory costs. AI also helps in maintaining optimal inventory levels and streamlining supply chains, ensuring efficient delivery of parts and components.
AI in Manufacturing
AI-driven robotic assembly lines enhance automotive manufacturing processes, including welding, painting, and assembly, thereby increasing efficiency and precision. AI applications are also used for quality control, inspecting vehicles for defects during production, ensuring superior product quality and reducing error rates.
Personalized Assistance and Predictive Maintenance
Vehicles now incorporate AI-powered voice-activated controls in the form of virtual assistants, allowing for hands-free operation of navigation, music, and more. AI is also utilized for predictive maintenance as its predictive capabilities can forecast potential component failures, allowing for timely maintenance and minimizing the risk of unexpected breakdowns.
Enhancing Passenger Experience
AI significantly improves in-car entertainment systems by providing personalized content recommendations and enhancing infotainment systems. AI-powered voice recognition technology also enables passengers to control various vehicle functions through simple voice commands, enhancing convenience and safety.
The Future of AI in the Automotive Industry
Investment in AI by the automotive industry is expected to drive an unparalleled growth trajectory. Projections suggest that the AI automotive market will experience a remarkable compound annual growth rate (CAGR) of 55% from 2023 to 2033. This surge underscores the industry’s shift towards integrating AI across various aspects of automotive technology and operations. Here’s a closer look at the anticipated developments:
Future Prospects for Automotive Companies
Integration of OEM-based AI Chips: In the future, automotive manufacturers will embed OEM-based AI chips designed to enhance vehicle functionalities, including lighting systems, cruise control, and autonomous driving capabilities.
Software Integration and Market Value: The seamless integration of software within automotive systems is critical to the sector’s growth, with the AI market segment poised to reach a valuation of US$ 200 billion within the next decade.
Autonomous Vehicle Segment Expansion: The autonomous vehicle segment’s value is projected to reach $30 billion by 2024, driven by advancements in self-driving technology. The market share for autonomous vehicles is anticipated to grow by 10.9%, with an expected 99,451 million units by 2032, demonstrating an increasing consumer demand for autonomous technology.
Growth in ADAS: The market for Automotive Advanced Driver Assistance Systems (ADAS) is poised for a substantial annual growth rate of 9.6%. With a projected market valuation of $131 billion, this growth reflects the rising adoption of advanced safety features in vehicles.
Automotive AI Market Expansion: A market research report forecasts that the automotive AI market will expand at a CAGR of 39.8% from 2019, reaching $15.9 billion by 2027, indicating strong growth and investment in AI technologies within the industry.
Generative AI in Automotive: The use of generative AI in the automotive sector is expected to increase from $271 million in 2022 to over $2.1 billion by 2032, according to MarketResearch.biz. This growth signifies the expanding role of generative AI in driving innovation and efficiency in automotive design and manufacturing.
These insights highlight the automotive industry’s forward momentum, with AI playing a central role in shaping its future. From enhancing vehicle functionality and safety to transforming manufacturing processes, AI is at the forefront of the industry’s evolution, promising a new era of innovation and growth.
Benefits of AI in the Automotive Industry
The integration of AI into the automotive sector presents a multitude of opportunities, revolutionizing the industry with new possibilities and efficiencies. Here’s how AI is improving various aspects of the automotive world:
Improved Safety: AI technologies, such as lane departure warnings, autonomous emergency braking, and adaptive cruise control, significantly enhance road safety by alerting drivers to potential hazards and taking preemptive actions to reduce the likelihood of accidents.
Predictive Maintenance: With the help of the Internet of Things (IoT), AI enables predictive maintenance by continuously analyzing vehicle data. This proactive approach alerts management about potential issues before they escalate, enhancing vehicle longevity and reducing maintenance expenses.
Enhanced Driver Experience: AI-powered infotainment systems offer a personalized user experience, featuring intelligent voice assistants capable of recognizing regional dialects, streaming music, providing navigation, and customizing vehicle settings to ensure safer and more enjoyable journeys.
Autonomous Driving: The emergence of AI-driven autonomous vehicles aims to bring about significant changes in the automotive landscape by reducing accidents, enhancing mobility for those with physical limitations, and improving overall traffic conditions.
Cost Savings: By streamlining manufacturing processes, enhancing supply chain efficiency, and preemptively identifying vehicle faults, AI contributes to substantial cost savings across various operational facets, from design through to production.
Targeted Marketing Strategies: AI enables automotive dealerships and manufacturers to implement highly targeted marketing strategies by analyzing customer data and behavior, tailoring marketing messages and offers to meet the specific needs and preferences of individual consumers, thereby increasing engagement and conversion rates.
Optimized Customer Engagement with CDPs: Customer Data Platforms (CDPs) integrated with AI technologies empower automotive businesses to create a unified and comprehensive view of their customers, delivering personalized customer experiences, more effective engagement strategies, and improved customer loyalty through targeted communications and offers based on in-depth insights into customer preferences and behaviors.
Through these advancements, AI is significantly shaping the future of the automotive industry, improving operational efficiencies, safety, and customer experiences, and opening up new avenues for innovation and growth.
Recapping the Benefits and Impact of AI in the Automotive Industry
The integration of Artificial Intelligence (AI) in the automotive industry marks a transformative era, heralding significant improvements in safety, efficiency, cost savings, and the overall driving experience. From enhancing manufacturing processes and predictive maintenance to revolutionizing driver assistance systems and autonomous driving, AI is at the forefront of automotive innovation.
Additionally, AI-driven marketing strategies and Customer Data Platforms (CDPs) are redefining how automotive companies engage with customers, offering personalized experiences that boost satisfaction and loyalty. As the industry continues to embrace AI, we can anticipate further advancements that will not only redefine mobility but also pave the way for smarter, safer, and more sustainable transportation solutions.
How can AI improve safety in the automotive industry?
AI improves safety in the automotive sector through advanced driver assistance systems (ADAS) like lane departure warnings, autonomous emergency braking, and adaptive cruise control. These systems help in preventing accidents by alerting drivers to potential hazards and taking preventive actions.
What is predictive maintenance with respect to AI in the automotive industry?
Predictive maintenance utilizes AI and IoT technologies to continuously monitor vehicle data. This allows for the early detection of potential issues before they escalate into serious problems, thereby enhancing vehicle performance and reducing maintenance costs.
Can AI in the automotive industry enhance the driving experience?
Yes, AI-powered infotainment systems offer personalized experiences by providing smart voice assistants, streaming music, offering navigational assistance, and adjusting vehicle settings. This makes journeys more enjoyable and safer.
What role does AI play in autonomous driving?
AI is crucial in the development of autonomous vehicles as it enables them to perceive their surroundings, make decisions, and navigate without human intervention. This can significantly reduce accidents, increase mobility, and improve traffic flow.
How does AI contribute to cost savings in the automotive industry?
AI optimizes manufacturing processes, enhances supply chain efficiency, and identifies potential vehicle issues early on, leading to significant cost reductions across various operational aspects.
What are the marketing benefits of AI in the automotive industry?
AI enables targeted marketing strategies by analyzing customer data and behavior. This allows automotive companies to create personalized marketing messages and offers, thereby increasing customer engagement and conversion rates.
How do Customer Data Platforms (CDPs) benefit the automotive industry?
CDPs, integrated with AI, help automotive companies create a unified view of the customer. This enables personalized experiences, effective engagement strategies, and improved loyalty through targeted communications based on deep customer insights.
Creating the AI-Powered Dealership of the Future
Fullpath, the automotive industry’s only enhanced Customer Data Platform, is reshaping the landscape of car dealerships by helping dealers unify and activate their first and third-party data using powerful AI and marketing automations.
Fullpath takes the typical CDP to the next level by adding the “Experience” factor, layering AI-powered technology on top of the dealership’s unified data layer. This added activation allows dealers to create exceptional customer experiences through automated, AI-driven, highly effective engagements and marketing campaigns designed to drive sales and loyalty.
The world has undergone significant changes recently. The rise of new technologies has facilitated a more comfortable lifestyle. New possibilities have arisen for individuals to utilize their time more effectively. For businesses and organizations, automation has enabled tasks to be completed in a shorter timeframe. Artificial intelligence offers humanity innovative technologies. Automobiles are practical vehicles that enhance comfort. AI is employed to elevate the overall experience and generate novel ones.
In the automotive sector, AI is crucial not just for convenience. AI algorithms gather and assess data regarding real-time conditions. Overall, the control systems for self-driving vehicles have attained a new standard. They evaluate the road and surroundings to manage transportation. Human involvement can be significantly diminished while ensuring safe driving. AI has a profound and beneficial influence on the automotive industry. Its contributions are advancing automotive technologies to new heights.
Enhanced Safety Features through AI
The automotive sector was developed primarily for human ease. Safety is a key factor for drivers, making the integration of AI vital. AI in the automotive context greatly affects the overall driving experience. It also plays a crucial role in efficiency and safety. The principal safety functions of AI include:
Driver assistance. Safety is the foremost condition impacting every driver’s life. AI continually refines ADAS components as a primary focus. Vehicle speed is managed based on various weather conditions. This strategy helps prevent collisions both in front and behind. Adaptive cruise control assists in keeping a safe distance from other vehicles. A significant application of AI is to ensure the driver stays within the designated lane. The vehicle operates solely within its lane without straying into others. AI-equipped vehicles have sensors that manage braking. The analysis of collected data allows for prompt notifications when necessary.
Collision prevention. AI is utilized to oversee collision occurrences. Data from cameras is processed in real time. In emergencies, AI engages safety mechanisms to prevent accidents. Steering assistance can help guide the vehicle into a safer lane. The AI may also automatically apply brakes to avert collisions.
Detection of blind spots. AI can identify information regarding blind spots. Drivers may be unable to see vehicles located behind or beside them. AI conveys this information to help prevent accidents. It is also crucial to employ sensors that provide alerts about approaching cars, often when a driver is reversing out of a parking space.
Monitoring the driver. AI in vehicles is essential for evaluating the driver’s state. Specialized sensors and cameras assess the human condition. They identify levels of stress, fatigue, and drowsiness. To prevent adverse situations while driving, these sensors can warn the person either visually or audibly.
Vehicle maintenance. AI technologies enable the monitoring of the vehicle’s health. Sensors gather information about the car’s condition and its components. They assess the status of parts and alert the driver of any malfunctions.
Systems for Preventing Collisions
Artificial intelligence significantly influences the progress of various companies. AI and automobiles are interlinked concerning safety, convenience, and preventive measures. Collision avoidance systems are progressively managed by artificial intelligence. The role of AI contributes to safer daily driving and accident prevention. Collision Avoidance Systems (CAS) are indispensable for all drivers, regardless of their skill level. Real-time control and monitoring of information is implemented. Data gathering and analysis have a significant impact on drivers’ awareness. A variety of sensors and cameras collect data concerning the vehicle and surrounding road conditions, tracking other vehicles. This comprehensive approach ensures that drivers can swiftly react and make correct decisions.
AI-enabled vehicles can analyze road situations using algorithms. Data collection and evaluation occur through machine learning processes. All sensors and cameras vigilantly monitor the surrounding environment in real-time. The system examines the approach of other vehicles, their paths, and potential collision hazards. This method assists in averting perilous situations on the road. AI also evaluates the presence of individuals and pedestrians nearby. It aids in clarifying the overall scenario to allow for prompt action. Machine learning empowers the system to anticipate and avert possible collisions and threats.
AI in the automotive industry provides advance warnings of potential collisions. An automated vehicle can activate safety mechanisms, including automatic braking, steering adjustments, and speed reduction. These features are vital for the safety of not just the driver, but also pedestrians and other road users.
AI in the automotive industry is evolving continuously. This technology enhances driving comfort and mitigates potential risks. Above all, the safety of both drivers and pedestrians is paramount. AI plays a significant role in ensuring this safety.
Advanced Driver-Assistance Systems (ADAS)
Car technology is progressing rapidly each year. The integration of AI and machine learning in vehicles has become essential. With the help of AI, driving has become more comfortable for many. Ensuring safety is a critical aspect of AI utilization. There are specific features designed to enhance convenience and avert road emergencies.
Adaptive cruise control. This feature allows for a more pleasant driving experience. It gathers comprehensive data from the surroundings. Sensors and cameras observe traffic conditions and the speeds of other vehicles. Consequently, adaptive cruise control adjusts the car’s speed automatically. If a vehicle ahead slows down, the system reduces speed as needed. Conversely, if other vehicles accelerate, the car will increase its speed.
Lane keeping system. Ongoing data collection and immediate analysis contribute to safer driving experiences. Sensors and cameras evaluate the lane boundaries that the vehicle should not cross. The car remains within its lane at all times. If the driver inadvertently drifts out of their lane, a warning is triggered. Automatic steering can be engaged to bring the vehicle back into its lane.
Automatic parking. Sensors and environmental data assessment facilitate automatic parking capabilities. Cameras and sensors gather information on adjacent vehicles and parking conditions. The intelligent vehicle assesses this data and executes parking maneuvers autonomously. The parking process is monitored in real-time, allowing the vehicle to determine a clear path.
Autonomous Driving Technologies
Automating most driving tasks minimizes the need for human involvement and resources. The application of cutting-edge automotive technology enables less reliance on drivers. Developing specialized vehicles that utilize and tailor AI represents a significant advance. This foundation empowers vehicles to operate without human intervention. Key functions are essential for successful autonomous driving. These features are vital for transforming the vehicle’s functionality.
Perception. The implementation of specialized sensors and cameras is crucial. They facilitate real-time comprehension and communication of status information. Recognizing the distance and speed of surrounding vehicles allows the system to regulate speed automatically. Cameras capture data on pedestrians, and AI algorithms analyze this data for appropriate responses. Additionally, road signs, which are vital for safe operation, are monitored. AI in automotive technology helps oversee the road markings along which the vehicle travels.
Decision-making. After gathering and examining all relevant data, actions are determined. AI utilizes this data to modify the vehicle’s speed accordingly. In the event of traffic congestion, decisions are made to navigate more efficiently. Based on the analyzed data, automatic overtaking maneuvers can be executed safely. Overall, decision-making is a crucial element following the data collection process. Machine learning models swiftly analyze the most suitable actions for the driver in various scenarios.
Control. With AI’s assistance, all actions are closely monitored and regulated. After thorough analysis, data collection, and decision-making, maintaining control becomes essential. This ensures that individuals drive safely and adhere to the planned journey’s rules.
Integration. Machine learning plays a vital role in self-driving vehicles. Merging and integrating various solutions is key to understanding and responding to the driving process. This method enhances automation and effectiveness. Thanks to integration, quick decisions can be made in diverse situations. Above all, ensuring the safety of drivers and pedestrians is the priority. AI aids in maintaining security and compliance.
Development of Self-Driving Cars
Artificial intelligence in the automotive sector is essential. The advancement of self-driving vehicles represents a significant milestone for humanity as a whole. These cars are not only convenient but also user-friendly. AI equips vehicles with sophisticated safety features for various scenarios. Self-driving automobiles will help decrease the likelihood of hazardous situations on the road. Utilizing machine learning along with cameras and sensors, cars continuously monitor their surroundings, gathering extensive data in real-time. This includes traffic conditions, the number of vehicles, their speeds, and the presence of pedestrians. All this information is recorded to inform future decision-making. By analyzing this volume of data, it becomes possible to understand the road conditions.
The sensors and cameras are responsible for collecting information. The AI in the vehicles assists in grasping the overall context and making subsequent choices. Investigating the number of vehicles and their movements is crucial for determining the appropriate speed.
The analysis of data transitions into the decision-making phase. Every action taken on the road is examined to choose the best travel option. Steering is crucial for preventing accidents. The car adjusts its speed based on its location. Developers equip autonomous vehicles with specialized sensors. Every effort is made to guarantee a pleasant journey.
The car comes with all the necessary tools and technologies. They are utilized for ongoing monitoring. The role of artificial intelligence in car manufacturing is significant. Ensuring control is paramount. All data analysis and decision-making processes are regulated to provide an efficient, comfortable, and safe ride.
Ethical and Regulatory Considerations
Artificial intelligence in the automotive industry is essential. AI reduces the necessity for human involvement, which could affect jobs in specific sectors. Overall, the influence of AI on driving is a vital and intriguing topic. There are often varying viewpoints regarding the ethics of self-driving cars. Some individuals argue that these vehicles represent a genuine global transformation. Others believe that such cars may not always adhere to regulations. Numerous questions arise surrounding the use of these vehicles. Here are the key concerns:
Safety. By and large, self-driving vehicles adhere to all safety regulations. They come equipped with specialized sensors and cameras for continuous surveillance. Events occurring outside the vehicle are monitored. The distances to other cars and their speeds are tracked. The sensors keep an eye on pedestrians and follow road markings. AI in the automotive sector has a comprehensive suite of necessary capabilities. A significant safety concern is the ability of such vehicles to respond appropriately in any given situation, which could involve a collision or adverse weather conditions. Can self-driving cars actually make rapid and correct decisions? The outcomes should be favorable not only for the occupant but also for others outside the vehicle.
Liability. In traditional vehicles, the driver bears responsibility during emergencies. Cases are examined to discern who is at fault and should face consequences. For self-driving cars, the situation is less clear. In the case of an accident, determining who is responsible can be complex. The question arises whether liability falls on the manufacturer or the operator.
Privacy. Self-driving cars typically gather and analyze vast amounts of data. An essential factor is the maintenance of confidentiality. Personal data and location specifics are sensitive information. How securely does the self-driving car safeguard this private information, and is it adequately protected?
Social impact. To many individuals, cars provide work opportunities and income. The emergence of self-driving vehicles could significantly affect the job market, especially for professional drivers. Considering these issues is vital for ensuring the future of such workers.
AI in Vehicle Connectivity and Communication
For autonomous vehicles, the priority is safety along with adhering to numerous commands. The comfort of drivers in these vehicles is crucial. Automated cars offer several benefits that enhance the driving experience. A significant advantage of AI in the automotive sector is the creation of unique systems. Entertainment and telematics systems contribute to the driver’s comfort. Here are their key features:
Information and entertainment systems. Autonomous vehicles come equipped with specialized cameras and sensors. As a result, drivers experience a higher level of comfort. Data regarding the driver, including behavior, preferences, and habits, is gathered and analyzed. Based on this analysis, AI provides alternatives or similar options. If a driver enjoys listening to the news, AI will suggest related content. Additional exciting news or relevant articles can enhance the driver’s journey. Music is also an essential aspect of life for many people. If the driver prefers rock music, AI will present comparable choices. By understanding the driver’s language, AI can tailor the communication method to suit the driver’s preferences. This allows drivers to adjust various settings in their preferred language.
Telematics systems. The integration of AI and vehicles is vital for ensuring safety, comfort, and awareness. AI assists in diagnosing the vehicle’s condition, its components, and overall functionality. If any part is malfunctioning, the driver receives a notification. AI not only identifies current issues within the vehicle’s performance but also analyzes its general condition and notifies the driver about routine diagnostics. Additionally, it can forecast maintenance needs. This method is very convenient and makes the driving experience more comfortable. Such diagnostics quickly find any problems and provide proactive alerts.
The Future of AI in Automotive Manufacturing
Driver AI is the optimal way to enhance comfort and enjoyment during the ride. Thanks to AI advancements, automotive manufacturing is experiencing a surge in development and popularity. Customizing vehicles with specific components allows for automated journeys. Ride management ensures both comfort and security. Sensors and cameras gather all environmental information, enabling rapid decision-making to prevent various situations. Machine learning algorithms assess sensor functionality, which aids in identifying errors and opportunities for correction.
Future AI-driven cars promise to introduce even more automated processes. Ongoing enhancements and quality management boost the effectiveness of self-driving automobiles. Various traffic situations and their potential occurrences are examined and assessed. The role of machine learning and greater AI integration is expanding. The way different scenarios are handled is recorded to guarantee safety for both the driver and other road users, including pedestrians.
Tesla has always been clear – making cars is, for Musk’s marque, more a crusade than a commercial enterprise. Its Fremont plant has a display that perfectly sums up its mission statement about transitioning the world to sustainable transport: a 20th-century petrol pump next to a sleek 21st-century Tesla Supercharger, echoing the classic illustration depicting the evolution of primate to homo sapiens. You must go back here to understand the origins of the Tesla Model 2.
Losing sight of the mission statement, nothing much Tesla does makes sense. Back in 2016, it could have relaxed with the Model S and Model X and stayed a niche, premium player. But no. The Model 3 arrived, orders soared, and Tesla faced growing pains as it adapted. The Model Y, its fourth car, has been even more popular. Despite recent price reductions, the most affordable Tesla remains a £40k proposition. To complete the job, Tesla needs a £25k car, named the Model 2. It aims to be nothing less than the battery-electric equivalent of the Ford Model T.
CEO Elon Musk has described the new car as ‘our next-generation low-class vehicle’, and for ‘low-class’ read financially accessible. A teaser silhouette revealed at the shareholder meeting last May hinted at a smaller Model Y, designed for aerodynamics and ease of manufacture rather than a standout design like the Cybertruck, which is a relief.
Similar to the Model 3 and Model Y, there are likely two cars in the works – Musk informed shareholders of this last May. Both will utilize a new architecture, codenamed NV9X, and additional versions are anticipated, although Musk has criticized established manufacturers for creating ‘variants for the sake of variants’, so those waiting for, for example, an estate will probably be disappointed.
Tesla needs two body styles because it requires international sales. Larger models have a broad appeal globally, but the major markets differ when it comes to smaller cars. Hatchbacks will sell in Europe, but not as much in the US or China. Similarly, small sedans are niche in Europe but popular in China.
Collectively, Tesla aims for annual sales of five million units, up from a total of 1.81 million in 2023 (1.74 million of which were Model Y/3). Musk aspires to surpass the Toyota Corolla or VW Golf globally.
In February, Ford CEO Jim Farley referred to the upcoming smaller Tesla as ‘the ultimate competition’. Before fulfilling that ambitious promise, Tesla must perfect the assembly process. Once again, the company is focusing its innovation on the production of the car, rather than reinventing the elements that the consumer will engage with.
‘This is a revolutionary manufacturing system; far more advanced than any other automotive manufacturing system in the world by a significant margin,’ Musk boasted to analysts on the company’s earnings call in January.
What Tesla excels at is also what the Chinese excel at, which is building EVs more affordably. This enables both disruptors to sell at lower prices and capture market share from established car makers.
Tesla has been relentless in reducing the cost of Model 3 and Model Y, some of which was reflected in price cuts while the rest contributed to profit margins. However, a significant change was needed to bring the new Model 2 down to $25k, the price that Musk mentioned in 2020. ‘We are approaching the limits within our current platforms,’ chief financial officer Vaibhav Taneja stated on the January call.
Tesla aims for a 50 per cent cost reduction in building the next-generation vehicle. The major innovation is to modernize Henry Ford’s 111-year-old production line and transition to what Tesla calls ‘unboxing’. Instead of the car slowly taking shape from initial metal stamping to body shop to paint shop and then final assembly – ‘Most of the time we’re doing nothing to it,’ head of vehicle engineering Lars Moravy said – Tesla intends to reorganize the factory to sub-assemble related parts.
For instance, the rear ‘megacast’ platform will be equipped with wheels, seats, and the rear drive unit, while the front seats and center console will be installed onto the battery pack. All the pre-assembled parts will then be assembled together in one final burst of efficiency.
Tesla aims to operate with fewer workers to increase cost-effectiveness, allowing for a 40% reduction in the manufacturing footprint. Initially, Tesla planned to build the car in a new plant in Mexico, but it has since announced that the first production will take place in Austin, Texas alongside the Cybertruck.
According to Musk, ‘Giga Texas’ was selected because the engineers need to be present during the initial phase, and it’s more feasible there than elsewhere, especially considering the potential challenges from German unions in Berlin. A third production site is being considered, possibly in Berlin, given the model’s significance in Europe.
Musk cautioned that the ramp-up will be gradual, citing the production challenges experienced with the Model 3. Although the Model 3 entered production in 2017, it wasn’t until 2019 that the car became available in the UK. It may take until 2027 for the next-generation car to arrive in the UK, by which time new competitors will likely emerge to challenge Tesla.
The Cybertruck, Tesla’s newest model, will incorporate some of the latest technology, specifically the transition to a 48-volt electrical architecture from the current 12 volts. This change offers cost savings by reducing the use of expensive copper while enabling faster communication between electronic components, as noted by Musk.
Tesla has been at the forefront of developing the ‘software-defined car,’ where fewer but more powerful computers process data more efficiently than numerous smaller ECUs. This ‘centralized compute’ system is also easier to update over the air, allowing for the quick addition of new digital features to the large central screen.
Another potential carryover from the Cybertruck is drive-by-wire technology, which would eliminate the steering column and make adjustments to the yoke wheel ratio, but this may come with additional costs that Musk might not be willing to accept for the base model.
The ‘Full Self-Driving’ suite, which is actually a hands-on, eyes-on Level 2 autonomous system at least in Europe, will likely be included, although with the removal of more sensors than additions, it remains uncertain if the Model 2 would achieve Level 2+ hands-off, eyes-on capability, let alone full autonomy.
Tesla emphasizes data learning over sensor input to address challenging self-driving scenarios, but regulatory approval of this approach may be a point of contention.
Range will be a critical factor. While Tesla cannot directly improve battery chemistry, this responsibility falls to suppliers such as China’s CATL and BYD for the more affordable LFP chemistry, as well as South Korea’s LG Chem and Panasonic from Japan.
However, Tesla plans to utilize the larger 4680 cylindrical battery, which the company has been developing to replace the smaller 2170 battery. Tesla claims that this battery’s increased energy density will result in extended range, as well as improved manufacturing efficiency and reduced costs. According to Tesla, the larger battery involves 15 parts and 21 manufacturing processes, compared to 17 parts and 33 processes for the smaller 2170 cell.
Tesla is also scrutinizing the design and construction of the electric drive unit (motor, inverter, gearbox) to reduce costs. The company aims to achieve a 75% reduction in silicon carbide, a material that enhances range and efficiency but adds to costs. Tesla also claims that the next-generation permanent-magnet motor does not require rare earths. Overall, Tesla estimates that it has reduced the cost of its drive unit to around $1000.
It is unclear how much Tesla will reduce the battery size to achieve an attractive price point, such as under £30,000 in the UK. However, it is expected that at least one version will achieve a range of over 300 miles on the official range test, and an all-wheel-drive option is also likely, considering the potential demand from wealthier car buyers in Europe’s snow-prone regions.
It is fair to say that Tesla has been working towards this car since its inception, starting from the production of the first Roadster by Lotus for Tesla in 2008. The company’s journey has been focused on relentlessly driving down the costs of electric cars to a point, perhaps three years from now, when this car will be affordable for buyers who currently opt for a Golf or Qashqai, prompting them to switch. This prospect should make competitors like Volkswagen and Toyota extremely nervous.
The much-anticipated affordable entry-level electric car from Tesla, commonly referred to as the Tesla Model 2, is expected to be launched in the first half of 2025, as reaffirmed by Tesla CEO Elon Musk during the company’s latest financial results call.
It’s possible that we may soon get a proper look at the highly anticipated EV, as Musk mentioned: “We delayed the unveiling of the Robotaxi product to 10 October. I wanted to make some important changes that I believe will enhance the Robotaxi and we’ll also showcase a couple of other things.”
The timing seems appropriate, as presentation slides for investors indicate that Tesla’s more affordable model will start production in the first half of 2025. It will utilize elements of the company’s next-generation platform along with some from its existing architectures and will be manufactured on the same production lines as its current vehicle lineup.
Tesla acknowledges that this approach won’t allow for as much cost reduction as previously expected but will enable the company to “Prudently grow our vehicle volumes in a more capex efficient manner during uncertain times”. This will help fully utilize the current expected maximum capacity of close to three million vehicles, enabling more than 50% growth over 2023 production before investing in new manufacturing lines.
Positioned as a more affordable addition to Tesla’s four-strong model range, the Tesla Model 2 has been in development for some time as the company aims to lower the entry price to its range of EVs below the base Model 3 that currently starts from £39,990 in the UK.
Only one official teaser image of the new ‘baby Tesla’ has been unveiled so far. It was revealed in 2023 at an annual shareholder meeting and depicts the curving roofline of a car with similar design cues to those of the existing Model Y SUV and Model 3 saloon.
Our exclusive images interpret Tesla’s existing line-up and teaser images in a scaled-down format to illustrate how a baby Tesla Model 2 model might appear. Based on the single teaser image we’ve received and a video shared on social media showing some design sketches, the new car could borrow numerous design elements from the Model Y SUV. We also anticipate that it will reflect the newly facelifted Model 3 with thinner headlights compared to Tesla’s older models.
The Model 2 should be positioned as a competitor to traditional family hatchbacks, with a length of around 4.4 meters. This could be achieved through a more aggressive rear roofline while still allowing for a conventional bonnet with luggage space beneath it.
Despite speculation about the car being called the Tesla Model 2, this name is not guaranteed to be used, especially since Model 3 was chosen as a reverse of Model E, which Ford initially warned Tesla against using.
Musk has stated, “We’re going to take everything we learned from [Models] S, X, 3 and Y, the Cybertruck, and the Semi into that platform. We’re trying to get to that 50 per cent number again.”
This refers to the Model Y, which has significantly lower bare construction costs than the Model 3. Tesla used improved processes to eliminate a significant amount of complexity from the Y; for example, a fresh pair of larger stamped components in its bodyshell alone perform the job of 171 separate parts in the Model 3, saving more than 1,600 welds during manufacturing.
Tesla is expected to utilize its “revolutionary” new manufacturing process called ‘unboxed’ to produce its entry-level EV, which is designed to be more efficient than current production lines and should also be faster.
Elon Musk informed analysts in 2023 that the next-generation vehicle “Will be about half the cost of the Model 3 and Y platform”. However, as we mentioned, Tesla doesn’t anticipate achieving that level of cost reduction.
Nevertheless, the baby Tesla could still significantly undercut the starting price of a Model 3, which is currently £39,990. We estimate the Model 2 could feasibly start at around the £30,000 mark.
This would considerably expand Tesla’s potential market, providing the company with a competitor for European-made electric hatchbacks such as the Volkswagen ID.3 and even Chinese models from the likes of MG and BYD. Considering that the Model Y was not only the world’s best-selling EV but also the most popular car overall last year, with 1.23 million units sold, a more affordable alternative from Tesla itself certainly has the potential to achieve a similar level of popularity.
In addition to the Model 2 being more affordable to purchase, former Tesla CFO Zach Kirkhorn asserted that the total cost of ownership for the company’s entry-level model per mile over five years will be significantly lower than a base Model 3 or Toyota Corolla.
In 2023, Colin Campbel, who was the powertrain head at Tesla, announced that the new electric motor for the upcoming vehicle would not utilize any rare earth materials. Additionally, the powertrain would be compatible with any battery chemistry, providing greater flexibility for sourcing.
The successful production of Tesla’s new smaller car is highly dependent on the choice of battery chemistry and the method of cell installation. The company has previously utilized lithium-iron phosphate cells (LFP), which are more cost-effective to manufacture than nickel manganese cobalt (NMC) cells.
Currently, the manufacturer incorporates LFP cells into some of its vehicles, and this is likely to be a significant component of the technical makeup of the more affordable model. The company is reportedly preparing to introduce ‘cell-to-chassis’ technology in German-built Model Ys as part of a collaboration with China’s BYD. This innovative method, which is lighter and more compact than traditional module-based construction, conserves space that can be utilized for additional cells to compensate for LFP’s lower energy density, thereby achieving a comparable range.
Elon Musk is confident that Tesla can build on its recent milestone of producing three million cars and expand its output to more than 100 million vehicles by the end of the decade. To accomplish this, he stated that the company would require “roughly a dozen factories,” with most facilities capable of producing up to two million cars annually.
There is significant anticipation surrounding the anticipated Model Y Juniper update, and a prominent Tesla observer now suggests that the unveiling of a Model 2 may take place at a Tesla event on October 10. Referred to as the 2025 Model 2, this vehicle, which has been described as a “stripped down Model 3,” is the subject of much anticipation. The vehicle, hyped by CEO Elon Musk as a $25,000-$30,000 car, could potentially be a focal point at Tesla’s autonomous electric ride-hailing taxi event, dubbed “We, Robot,” at Warner Bros. Studios in Burbank, California, on October 10, according to Gene Munster, a managing partner at Deepwater Asset Management, an investor in Tesla.
“I’m expecting the unveiling of three vehicles (although most are anticipating two), and I believe we will only receive information about the production timeline for the Model 2, which I anticipate will commence in late 2025,” according to a note from the investment firm dated October 4. “This timeline is a few months later than what Elon’s comments suggested on the June earnings call. One potential surprise could be that the more affordable Model 2 is essentially a stripped down Model 3, which would be viewed unfavorably by investors,” the note mentioned.
Although Tesla CEO Elon Musk is known for being flexible with delivery dates, it appears that a more affordable vehicle is indeed in development. “We are on track to deliver a more affordable model in the first half of next year,” he stated during the company’s second quarter earnings conference call. While not officially named by Tesla, analysts commonly use the Model 2 moniker to refer to the car.
(UPDATE: On October 10, Musk discussed a low-cost vehicle, but it was a fully-autonomous Cybercab with no steering wheel and no pedals. It is expected to be priced under $30,000 and is due in 2026.)
The Model 2 may be linked to Tesla’s upcoming October event, even if Musk does not explicitly mention the future affordable Tesla. “The vehicle to be introduced may have dual purpose for consumer sales and robotaxi use,” said Stephanie Brinley, an analyst at S&P Global Mobility, referring to a future low-cost Tesla. This suggests that the car could be an integral part of Tesla’s strategy for fully autonomous ride-hailing vehicles.
Musk has publicly expressed confidence in this strategy. “We’re convinced we can make a compelling $25,000 electric vehicle that’s also fully autonomous,” he stated in 2020.
The 2025 Model Y Juniper: Following the 2024 Model 3 refresh, Tesla enthusiasts are eagerly anticipating the next version of the Model Y. The Tesla SUV is the best-selling electric vehicle in the U.S. and is one of the most widespread cars in urban areas such as Los Angeles, as well as one of the top-selling cars globally. It was unveiled in 2019.
There was widespread speculation this summer after a Reddit post appeared to show a future Model Y wrapped in black. Subsequent “leaks” purported to reveal a new Model Y with a rear light bar. However, there will not be a Juniper model released this year. “No Model Y ‘refresh’ is coming out this year,” Musk stated in June. “I should note that Tesla continuously improves its cars, so even a car that is 6 months newer will be a little better,” he explained.
One thing is for sure, though. The design is starting to show its age. “Tesla is now delivering vehicle volumes like a traditional automaker, and traditional automakers understand that a fresh lineup is what retains customers,” Joseph Yoon, an analyst for consumer insights at Edmunds, informed me in July.
Model Y Juniper might resemble the Model 3 update: the Model 3 update likely provides hints about the Model Y that is set to be released in 2025.
Performance: The Model 3 Performance boasts more horsepower (up to 510 hp) and accelerates from 0–60 mph in 2.9 seconds. Front: The front now features a smoother hood (bump removed) and low-profile headlights for improved aerodynamics. Ride: “Frequency response dampeners” have been added to ensure a smoother ride in the updated Model 3. Tires: Enhanced tires and wheels have been installed to extend the range and reduce noise. Seats: Ventilated seats have been incorporated. Cabin: The cabin is now quieter due to 360-degree acoustic glass, meaning all windows are now made of acoustic (double-glazed) glass, not just the windshield and front side glass. Screen: A rear entertainment screen for passengers has been introduced, allowing for gaming, streaming, and climate control. Stalkless: The stalks on the steering wheel have been removed, with physical controls now moved to thumb buttons on the steering wheel. Controls: More software (display-based) controls, including a gear selector integrated into the touch screen, have been added. Sound: An improved sound system has been included. Hardware 4 (HW4): Anticipated to feature the latest Hardware 4, bringing enhancements in computing power and sensor capabilities for Autopilot and FSD. Motor: Potentially enhanced motors, such as a more efficient rear motor, may have been installed.
And other potential upgrades not influenced by the Model 3 update:
Rear: Updated taillights and bumper; there are rumors of a rear light bar.
Cameras: An additional camera could be integrated into the front bumper to enhance Autopilot and FSD capabilities — although this is not confirmed.
Battery: There could be a larger battery pack (unverified rumors suggest a massive 95 kWh battery) that could significantly increase the range. Currently, the largest battery pack in the Model Y is 75 kWh. Additionally, it’s almost guaranteed that Tesla is consistently enhancing its battery technology, so new battery tech in the Model Y Juniper will likely be more efficient, providing more miles per kilowatt hour (kWh).
Is there still a plan for a more affordable Tesla Model 2?
In April, Tesla refuted rumors about canceling their entry-level EV project and Elon Musk dismissed them as fabrications. Shortly after, design chief Franz von Holzhausen hinted at something in the pipeline, despite much of the focus being on the robotaxi project.
The speculated Tesla Model 2 has no official launch date and details on its design remain mysterious. Our artists have envisioned a potential five-door body style that blurs the lines between hatchbacks and crossovers. This smaller Tesla could offer practicality and leverage smart electric architecture.
Potential competition for this offering includes electric hatchbacks like the VW ID.3 and MG4, as well as similarly sized crossovers like the Renault Megane E-Tech and the upcoming Nissan Leaf. It could serve as a new entry point in Tesla’s lineup, positioned below the Model 3 sedan and Model Y crossover in terms of pricing.
Launching a new model demands significant investments in production and R&D, and Tesla must ensure that demand justifies these costs. Additionally, smaller segments often yield less profit compared to larger, more premium counterparts due to thin margins, and the development and testing phases require careful consideration.
Recent sales slumps and a sharp drop in overall EV registrations across Europe serve as reminders that the EV market is unpredictable. To achieve its goal of selling 20 million vehicles annually by 2030, Tesla needs competitive products and a favorable climate for EV popularity worldwide. Predicting the latter remains uncertain.
The smaller EV would be the most affordable member of Tesla’s lineup, priced at less than A$40,000. The public and media have even named the new Tesla model “the Model 2.”
Despite public events making Elon uneasy, he knows how to generate interest. He has a history of teasing products that take years to materialize, such as the Cybertruck, the Tesla Semi, the Roadster, and now the Cybercab — allegedly due in 2026.
The We, Robot event took place at Warner Brothers Movie Studios in California and featured Musk being picked up by a small two-door electric vehicle and taken away. The fully autonomous Cybercab (or Robotaxi) was introduced as the future of personal transportation, allowing owners to send it out to transport paying passengers to their destinations while they could stay at home and relax.
Apart from its large, disc wheels (which are actually a visual illusion achieved with some additional gold paint) and scissor-opening doors, the gold-colored Cybertaxi did not appear significantly different from other Tesla vehicles. It featured the sleek sports car nose and bulging front wheel arches of the Model 3, while the rear design gave off strong Cybertruck vibes.
However, what if this was actually the Model 2 and no one realized it? It’s the type of joke that Musk would likely find very amusing.
Should we be preparing ourselves for a tweet that is completely out of context, asking for opinions on the looks of the Model 2? Or perhaps the display was a way to gauge public opinion on the new or proposed design of what will eventually become the Model 2. Only Musk and his inner circle would have that information.
Up until now, the only image of what could potentially be the Model 2 that has been revealed by Tesla is a silhouette of a vehicle shown during the company’s annual shareholder meeting in 2023.
Then, at the beginning of this year, a low-resolution photo of a two-door hatch-style vehicle started circulating, reportedly of the Model 2 being developed at Tesla’s Giga factory in Berlin. This is not an official Tesla image, but many believe it to be a genuinely leaked photo of a mule or prototype, possibly for the Model 2.
The exclusive CarsGuide image you can see here is our artist’s interpretation of what the Model 2 could look like based on Musk’s announcements, the design of the Cybercab from the We, Robot event, and those previous teasers. Time will tell how accurate our rendering was compared to the production model.
All we have to rely on is what Musk has disclosed, which is that an affordable, smaller vehicle will be added to the lineup in 2025 and will be positioned below the Model 3. He hasn’t even confirmed that Model 2 will be the name.
According to Musk, this smaller EV is expected to be manufactured at Tesla’s Giga Factory in Texas, alongside the Model Y, and is set to launch in 2025. It was initially expected to utilize a completely new platform shared with the Robotaxi, but reports have indicated that it will combine new production techniques from the Cybercab with a cost-cut version of the Model Y’s underpinnings.
“I think the revolution in manufacturing that will be represented by that car will blow people’s minds,” Musk said. “It’s a level of production technology that is far in advance of any automotive plant on Earth.”
Musk needs a smaller, lower-priced model in his lineup if he intends to compete or survive against new players such as BYD and other Chinese carmakers who are moving faster than mainstream brands to bring affordable electric vehicles to consumers.
Unlike other deadlines that have been delayed by years, Musk’s plans to introduce the Model 2 next year must come to fruition, otherwise Tesla might not be able to keep up with the new rivals who are already off to a very quick start.
If Tesla gets it right, the Model 2 has the potential to surprise the market and challenge established brands like Ford, Toyota, Hyundai, Mazda, Volkswagen, and Nissan.
However, it might already be too late. Following the We, Robot event, Musk’s net worth dropped by US$15 billion as Tesla’s shares plummeted by nine percent. There is some optimism, though, with Musk pledging that the Cybercab will be relatively affordable at under US$30,000 (A$45,000) per unit, suggesting that a more traditional small Model 2 could meet the promised price target.
Although the Cybercab event seems to have been a major disappointment, most viewers were probably more disappointed that Musk did not use We, Robot to unveil the Model 2. But perhaps he did.
Tesla Guide: Tesla Dual Motor VS Single Motor?
Tesla’s popularity has been on the rise for good reasons. These electric vehicles don’t resemble traditional electric cars; they are high-performance vehicles that can easily go unnoticed by Tesla fans. Despite their high cost, many people have opted for the rear-wheel-drive model with just one motor. However, there is a debate about whether the dual-motor option is worth the extra expense.
Tesla Dual Motors vs. Single Motor: The choice between a single and a dual motor depends on your specific needs and preferences. Dual motor Teslas offer all-wheel drive, more horsepower, and faster acceleration, while single motor Teslas are more affordable and have rear-wheel drive.
If you are thinking about purchasing a Tesla and want to make an informed decision between a dual or single motor, it’s crucial to do your research. Understanding the differences between the two motor types is essential in making the right choice.
What is Tesla? It’s important to comprehend the distinction between dual motors and single motors.
Tesla is based in Palo Alto, California, and is known for producing electric vehicles that do not rely on gasoline. These cars are equipped with powerful batteries that can be charged at home or using Superchargers on the road.
Regardless of whether they feature dual motors or just one motor, Teslas offer great value. They eliminate concerns about fluctuating gas prices and regular maintenance costs. While the upfront cost of a Tesla may be higher, it results in significant savings over time compared to gasoline-powered vehicles.
Teslas are an excellent choice for environmentally conscious individuals as they produce no harmful pollutants due to their lack of reliance on gas or oil, contributing to cleaner air.
The appealing appearance of Tesla’s vehicles is a major selling point for many customers. Prior to Tesla, electric cars were easily recognizable, but Tesla sought to change that by creating stylish electric vehicles.
Tesla offers a variety of models, including the popular sedan models Model 3 and Model S, as well as the Model Y and Model X.
The more affordable versions of the Model S and Model X are the Model 3 and Model Y.
The Difference Between Single and Dual Motor Systems: It’s important to understand the distinctions between these two motor systems in order to make an informed decision. By learning about their key differences and operations, you can make a more informed decision.
What is a Single Motor System? The single motor option is less expensive and involves a single rear motor. Not all Tesla models offer this option, and selecting it means the vehicle is only rear-wheel-drive.
Pros of a single motor system:
– Potentially improved reliability due to fewer vehicle parts.
– Lower cost.
Cons of a Single Motor System:
– Limited to rear-wheel drive.
– Not available in all Tesla models.
– Shorter range.
– Lower horsepower.
– Slower 0-60 acceleration.
While the single-motor system may be sufficient for most users, it is limited to rear-wheel drive. This system is easier to maintain and may be more cost-effective than a dual motor system.
What is a Dual Motor System? A dual motor system includes two separate motors: one rear motor, which is the same as in a vehicle with a single engine, and an additional front motor. The front motor enables all-wheel drive and faster acceleration.
– Higher cost.
– Potential for increased likelihood of breakdown due to more parts (although this is not a significant concern).
Dual motor systems are the best choice for individuals seeking all-wheel power and requiring greater acceleration, range, or power.
Tesla Dual Motor: Worth the Price? After understanding the differences between single motors and dual motors, it’s important to determine whether a dual motor is the right choice for you.
Dual-motor vehicles with AWD offer numerous benefits. All-wheel drive (AWD) is one of the advantages of choosing a dual motor. AWD allows the vehicle to quickly adapt to changing road conditions and distribute weight to maintain traction regardless of weather conditions.
What is all-wheel power? A quick overview: Dual motor systems are utilized to provide all-wheel drive. For instance, when the vehicle is exerting greater effort during acceleration, it redistributes weight from the front to the back. This enables the front motor to reduce power to prevent wheel spin and maintain stability. During this process, the excess energy from the front-mounted motor is transferred to the rear-mounted motor to ensure vehicle stability.
In challenging weather conditions, the dual-motor system operates in the opposite way. Instead of transferring power from the front motor to the back, it provides more torque and power to the front.
What is AWD?
For those living in areas with infrequent snow or rain, all-wheel drive may not be necessary.
Consider all-wheel drive as the safest option in extreme weather conditions. AWD is a system that enables power distribution to all wheels at all times.
Why do we need AWD?
If you reside in a region with frequent wet and snowy conditions, an all-wheel system will make your vehicle safer compared to a rear-wheel drive vehicle.
A dual-motor option is optimal for areas with harsh weather conditions.
Conclusion
Some consumers are comfortable and confident in purchasing a single motor system. The dual-motor electric car will provide more power, acceleration, and a greater range.
The last thing you want is to buy a single motor and later regret not choosing the dual-motor. I have seen this happen to Tesla users in the past, which is why I am grateful I chose the Dual Motor option.
A Tesla is an excellent choice, regardless. I hope this article has helped you decide which model, single motor or dual-motor, is best suited for you.
What are Neural Networks?Neural networks are a series of algorithms that aim to imitate the human brain in order to identify patterns from data. They process information using machine perception by grouping or labeling raw input data.
Consider the complexity of the human brain, which is composed of a network of neurons. It has the remarkable ability to quickly grasp the context of various scenarios, something that computers struggle to do.
Artificial Neural Networks are designed to address this limitation. Initially created in the 1940s, Artificial Neural Networks seek to mimic the functioning of the brain. Sometimes referred to as perceptrons, an Artificial Neural Network is a hardware or software system. It consists of a layered network designed to emulate the operations of brain neurons.
The network includes an input layer for data processed entry and an output layer for presenting information. Connecting the two is a hidden layer, or layers, comprised of units that transform input data into useful information for the output layer.
In addition to emulating human decision-making processes, Artificial Neural Networks enable computers to learn. Their structure allows ANNs to efficiently and effectively identify complex patterns that may be challenging for humans to discern. Furthermore, they enable us to rapidly classify and categorize large volumes of data.
How do Biological Models of Neural Networks Work?
What aspects of human brain structure do neural networks imitate, and how does the training process function?
All mammalian brains are made up of interconnected neurons that transmit electrochemical signals. Neurons have various components: the body, which includes a nucleus and dendrites; axons, which connect to other cells; and axon terminals or synapses that transmit information or stimuli from one neuron to another. Together, they carry out communication and integration functions in the nervous system. The human brain possesses a vast number of processing units (86 billion neurons) that facilitate the performance of highly intricate functions.
How do Artificial Neural Networks Work?
Artificial Neural Networks consist of several layers, each containing artificial neurons known as units, which process, categorize, and organize information. The layers are accompanied by processing nodes, each holding specific knowledge, including programmed rules and learned rules, allowing the network to learn and react to various types of data. Most artificial neural networks are fully connected across these layers, with weighted connections determining the influence between units.
The input layer receives information in various forms, which then progresses through hidden layers for analysis and processing. This processing helps the network learn more about the information until it reaches the output layer, where it works out responses based on the learned information. ANNs are statistical models designed to self-adapt and understand concepts, images, and photographs using learning algorithms.
For processing, developers arrange processors in parallel-operating layers: input layer, hidden layer, and output layer, analogous to the dendrites, cell body, and synaptic outputs in the human brain’s neural network, respectively. The hidden layer uses weighted inputs and a transfer function to generate output.
Various types of Neural Networks
The recurrent neural network, a commonly used type, allows data to flow in multiple directions, enabling complex tasks such as language recognition. Other types include convolutional neural networks, Hopfield networks, and Boltzmann machine networks, each suited for specific tasks based on the entered data and application. More complex tasks may require the use of multiple types of ANN.
Tesla is betting big on autonomy based on neural networks with an impressive showcase.
Today, Tesla hosted an “Autonomy Investor Day” at their headquarters in Palo Alto, CA. At the event, Tesla detailed its plans for advanced driver assistance and eventual car autonomy. The presentation delved into more technical details than previous Tesla disclosures, significantly improving my perception of Tesla’s methods and prospects. This was undoubtedly Tesla’s most significant press event to date.
Unlike most companies working on fully autonomous vehicles, Tesla has taken a distinctive approach. The company plans to rely solely on radar and an array of video cameras around the vehicle to accomplish this.
Most other teams also use these technologies, but supplement them with LIDAR (laser) sensors, which provide the vehicle with exceptional 3-D vision regardless of lighting conditions. During the presentation, Tesla provided a more in-depth explanation of why it has chosen this approach and its criticisms of alternative approaches.
Not only did Tesla express disagreement with other methods, but Elon Musk also derided LIDAR as a “fool’s errand” and asserted that those who depend on it are “doomed.” He also predicted that all other players “will dump LIDAR, mark my words .” Similar sentiments were expressed regarding the use of detailed “HD” maps to understand the road based on previous trips over it.
In essence, Tesla is making a substantial bet that they can address all self-driving challenges using neural networks. They believe that neural network approaches are indispensable for solving the problem, asserting that other methods, including additional sensors like LIDAR, are distractions and unnecessary expenses.
If this bet proves successful, it will be a significant triumph, potentially positioning Tesla as the leader in what is perhaps the most substantial opportunity in modern industry.
There is a lot to dissect from this presentation, and more articles on this topic will follow.
New Chip
Tesla has developed its own custom chip tailored for the specific processing needs of their vehicles, and they are now integrating this chip into all new cars. They are convinced that it provides all the computing power necessary for full self-driving. The chip was designed to dedicate its silicon exclusively to driving-related tasks and to keep power consumption under 100 watts to avoid affecting the vehicle’s range.
The majority of the chip is allocated to conducting dot products for neural network convolutions. Musk contends that this chip surpasses all others globally in terms of neural network capabilities, a claim that may be disputed by other companies developing similar chips. Tesla primarily compared its performance to NVIDIA’s general-purpose GPU chips.
The hardware boasts impressive specifications and is likely adequate for the required computations. While similar chips may become available from other providers, Tesla anticipates that designing their own chip and integrating it into millions of cars will yield long-term cost savings, even factoring in development In addition to the neural network hardware, the chip features a mid-level GPU and 12 64-bit ARM cores for general-purpose computing. The hardware is designed with redundancy to withstand the failure of any component.
Network training
Tesla has focused on enhancing its neural networks with its new network hardware, emphasizing the training of better neural networks to categorize objects encountered on the roads. The company believes its competitive advantage lies in the extensive fleet of cars, currently amounting to around half a million cars, which they utilize for network training.
Andrej Karpathy outlined some of the strategies they employed. Initially, they trained their networks using human-labeled images, and when they encountered something they wanted to improve network training on, they requested their car fleet to upload relevant images, enabling them to amass thousands of images for training data to enhance network performance.
Their approach encompassed various stationary and moving objects and also involved identifying patterns of movement, such as requesting examples of cars cutting in front of Tesla cars. This enabled them to analyze pre-cut-in video footage to train the network to predict future car activities on the road.
They also applied this methodology to path planning, observing human drivers’ path choices in different road scenarios to understand typical human responses. In cases where errors were observed, they prioritized obtaining better data to network enhance training.
Additionally, they achieved significant success in training their networks to estimate distances to objects in the field of view. One method involved leveraging car radars, which provided precise distance measurements to all radar targets. By correlating radar targets with visual targets, they trained the network to estimate distances to visual targets accurately.
Tesla’s extensive fleet of drivers granted them immediate access to new data relevant to their team. It is important to note that any entity with a vast network of dashcam recordings could potentially leverage this approach, although accessing radar data might be a limitation. This type of data is available to multiple parties should they choose to record it. However, Tesla can more effectively manage its fleet due to its regular software updates across all its cars.
This approach has empowered Tesla to establish a robust system for training neural networks for perception and driving. The pivotal question revolves around whether this approach is adequate to achieve the utmost reliability, often referred to as the “final 9s,” necessary to eliminate the car’s steering wheel. Tesla contends that reaching this extremely high level of reliability requires extensive training data, an area in which they have a competitive edge with their large fleet. While it is widely acknowledged that more data is beneficial, there is ongoing debate on whether it is sufficient or if additional techniques are imperative to achieve such an exceptional level of reliability.
Managing software
Tesla has implemented this approach with its recent update for “Navigate on Autopilot,” allowing the vehicle to make lane changes automatically. Initially, this feature required drivers to confirm each lane change. Tesla analyzed drivers’ responses to suggested changes and used the data to improve the system. With automatic lane changes, the system now receives feedback on 100,000 automated changes daily, reporting no accidents related to these maneuvers.
The company also intends to apply this method to enhance its automatic emergency braking (AEB) system to anticipate potential obstacles, including pedestrians, cyclists, and sudden lane intrusions, by the end of this year.
Comparison: Tesla vs. Industry
The main focus of the entire presentation revolved around Tesla’s distinct choice to forego the use of both LIDAR technology and detailed high-definition maps, unlike most other major players in the industry. by other companies.)
The decision by Tesla not to utilize LIDAR has sparked controversy. Though Musk’s viewpoint that LIDAR is a crutch represents a minority stance, the company has presented a compelling argument in support of this position. For a more in-depth analysis of this pivotal issue of cameras versus LIDAR, refer to my detailed article on the matter.
In summary:
1. LIDAR provides consistent visibility in all lighting conditions, while camera views are heavily influenced by factors like day/night variations, weather, and the sun’s position.
2. LIDAR offers true 3D perception, whereas cameras rely on software to interpret the scene and determine the spatial positioning of objects.
3. LIDAR observes the environment at shorter ranges and lower resolutions.
4. Although LIDAR is considerably more expensive, its cost is rapidly decreasing. However, it is not yet commercially available in sufficient quantities and quality levels, except for Waymo. In contrast, cameras are highly affordable.
5. The reliability of computer vision required for camera-based systems to enable self-driving capabilities is not currently at an adequate level, although many are optimistic about imminent breakthroughs.
6. LIDAR alone is insufficient for certain scenarios, such as accurately identifying road debris, traffic signals, and distant objects. tested, extensive computer vision capability is essential.
Tesla Network
Elon Musk presented on the upcoming Tesla network, which I will provide a more detailed account of tomorrow. Users will have the ability to set specific times and regulations governing the use of their vehicles by others.
Initial key points:
Tesla has pledged to eventually establish a ride-hailing service, resembling Uber in appearance, where Tesla owners’ private vehicles will operate in autonomous mode, generating income for the owner. For instance, owners could designate their car as available for the next 5 hours , after which it would join the network and provide rides before returning. They have projected that this service could be available in just 3 years, significantly increasing the value of each Tesla due to its potential revenue-generating capability.
The extent of interest in this option remains uncertain, as well as how many owners will keep their vehicles prepared for immediate deployment to serve others. (Many people store personal items in their cars and may be unwilling to deplete the battery suddenly.) For those who do opt for this, the car will naturally incur expenses and depreciation, estimated at around 37 cents per mile, but Tesla anticipates it could be reduced to 18 cents per mile with their vehicle. Tesla forecasts a network cost of $1 per mile, which is half of Uber’s, but final conclusions have not been reached.
Tesla is highly committed to this concept. In fact, Musk has announced that they will start encouraging customers to purchase the lower-end “Standard Plus” Model 3 instead of the long-range Model 3, as they are constrained by the number of batteries they can produce.
Selling cars with smaller batteries means they can sell more cars, leading to an increased number of vehicles for their future robotaxi service. Musk was questioned about Tesla’s spending on Autonomy and he stated “It’s essentially our entire expense structure,” indicating a significant investment in this plan.
This year, Tesla acquired over $2 million worth of lidar sensors from Luminar. Despite Elon Musk’s disdain for lidar, which he has previously described as a “crutch” and indicated that companies relying on lidar for autonomous capabilities were “doomed,” Tesla appears to be stockpiling these sensors.
Luminar, an Orlando-based lidar manufacturer, revealed in its quarterly earnings report that Tesla was its “largest LiDAR customer in Q1,” accounting for over 10 percent of the company’s revenue for the quarter, which amounts to approximately $2.1 million worth of lidar based on Luminar’s $21 million quarterly revenue. This substantial purchase from Tesla helped offset a decrease in revenue driven by a reduced volume of sensors supplied to non-automotive companies. However, it was not enough to prevent Luminar from announcing layoffs affecting around 20% of its workforce, and Tesla also initiated employee layoffs.
This marks a significant turnaround for Tesla, as the company has significantly reduced the number of sensors it uses to power advanced driver-assist features like Autopilot and Full Self-Driving over the years. These are features that Musk has consistently positioned as a precursor to a fully autonomous vehicle fleet. It is expected that Tesla will unveil a robotaxi prototype later this year, a project on which Musk is staking the future of the company.
Musk’s aversion to lidar was evident during Tesla’s recent quarterly earnings call, during which he emphasized the reliance on camera-based vision systems to power the vehicles’ driver-assist features and boasted about the potential for achieving self-driving with a relatively low-cost inference computer and standard cameras, without the need for lidars, radars, or ultrasonic sensors.
The purpose of Tesla’s acquisition of $2.1 million worth of Luminar lidar sensors remains unknown. Luminar spokesperson Milin Mehta declined to comment, and Tesla has not formally responded to any reporters’ inquiries since 2019.
Nevertheless, it should not be entirely surprising that Tesla is showing interest in lidar technology. In 2021, a Tesla Model Y was spotted in Florida with rooftop lidar sensors manufactured by Luminar. Additionally, Bloomberg reported that Tesla had partnered with Luminar to utilize lidar for “testing and developing,” although the specifics of this collaboration remain undisclosed.
When questioned in 2021 about the Tesla deal, Luminar founder and CEO Austin Russell declined to comment, citing “customer confidentiality.” He mentioned that Luminar sells its older Hydra lidar units to certain customers for “testing, development, data collection, [and] benchmarking.”
Even if Tesla is using Luminar’s lidar to validate its Full Self-Driving feature for an upcoming robotaxi launch, that’s still a substantial amount of lidar. According to Luminar, individual lidar sensors cost around $1,000, including software. Could it be that Tesla purchased 2,100 lidars for its vehicles? Possibly! The company is quietly operating an autonomous testing fleet in multiple cities, including San Francisco and Las Vegas. Will it retrofit those company-owned vehicles with Luminar’s lidar? If it does, people will take notice, just like they did with the one Model Y in Florida several years ago. We will soon find out whether those vehicles are ready to hit the road.
In response to a Musk-fan account mocking this article on X, Musk stated that Tesla didn’t require the lidar for validation purposes, without clarifying the purpose of the sensors.
What does appear evident is that Tesla is shifting its stance on lidar, even if Musk publicly remains opposed to it. Eventually, the CEO himself may be compelled to set aside his pride and acknowledge that lasers are indeed valuable.
NHTSA reports that at least 20 vehicle crashes occurred after Tesla recalled 2 million vehicles with Autopilot. The government is seeking to understand the reasons behind this.
Following Tesla’s voluntary recall of 2 million vehicles with Autopilot, there have been at least 20 crashes involving Tesla vehicles with Autopilot engaged. The National Highway Traffic Safety Administration (NHTSA) disclosed this information in a recent filing.
Tesla issued a recall for over 2 million vehicles with Autopilot in response to NHTSA’s investigation into numerous crashes involving the company’s driver-assist feature, including several fatal ones. The recall aimed to address concerns related to driver inattention and Tesla’s warning systems, which NHTSA stated have contributed to hundreds of crashes and dozens of fatalities. However, last month, the agency initiated a new investigation into Tesla’s fix and is now requesting additional information from the company.
In its request for information, NHTSA mentioned that a preliminary analysis revealed at least 20 crashes in Tesla vehicles equipped with the updated version of Autopilot. Of these crashes, nine involved Teslas colliding with other vehicles or pedestrians in their path — termed “frontal plane” crashes by the agency. These crashes suggest that Tesla’s camera-based vision system may be insufficient in detecting certain objects in front of the vehicle when Autopilot is engaged.
NHTSA is asking Tesla to provide data that will enable its investigators to compare vehicle performance in these types of crashes before and after the recall, including the number of “Hands-on-Wheel” warnings issued to drivers. Last month, NHTSA criticized Tesla’s ” weak driver engagement system with Autopilot’s permissive operating capabilities.”
Other details requested by NHTSA include explanations for Tesla’s one-week suspension policy for misuse of Autopilot, driver monitor warnings, driver-facing alerts, and the single pull versus double pull of the driver stalk to activate Autopilot. NHTSA is also seeking information about ” Tesla’s use of human factor science in its design,” including the number of employees dedicated to these designs.
NHTSA is requesting data from Tesla regarding the collection of telemetry data following crashes that happen when the vehicle is in Autopilot or Full Self-Driving mode. Additionally, it is seeking more information about how Tesla utilizes the in-cabin camera to monitor driver attention. The agency warns that failure to comply with its information request could result in Tesla facing fines of up to $135 million. Tesla has time until July 1st, 2024, to provide the requested information.
Elon Musk, the CEO of Tesla, has previously expressed his opinion that lidar sensors are a crutch for autonomous vehicles. Nevertheless, Tesla has become the top customer of the lidar manufacturer Luminar after purchasing a significant number of lidar sensors from the company.
Luminar recently revealed in its first-quarter earnings report that Tesla contributed to over 10% of its revenue in the first quarter of 2024, totaling a little more than $2 million. Despite a 5% decline in revenue from the previous quarter, mainly attributed to reduced sensor sales to non-automotive clients, Luminar’s revenue was bolstered by increased sensor sales to Tesla, its largest lidar customer in Q1. Luminar also noted a 45% year-over-year revenue gain.
During the first quarter, Luminar reported a net loss of $125.7 million, an improvement compared to the $146.7 million loss reported during the same period the previous year. The company attributed its net loss to accelerated depreciation for equipment expected to be abandoned following certain outsourcing actions initiated in fall 2023.
In recent news, Luminar announced plans to reduce its workforce by 20% and outsource a significant portion of its lidar sensor production as part of a restructuring effort to scale the business.
Tesla has been observed using lidar and other sensors on its test vehicles, and there have been reports of a partnership with Luminar dating back to 2021. However, details of this collaboration have never been disclosed. Luminar included Tesla in its earnings report in line with historical SEC guidance, revealing the information just prior to Tesla’s anticipated reveal of a robotaxi on August 8.
Elon Musk has consistently argued against the use of lidar for autonomous vehicle navigation, stating that it is an unnecessary and expensive sensor. Musk previously asserted at Tesla’s “Autonomy Day” event in 2019 that relying on lidar is futile and akin to having multiple unnecessary appendices .
Musk also mentioned at the same event in 2019 that Tesla would launch a fleet of robotaxis within a year, a promise that did not materialize. Instead, Tesla’s involvement in purchasing lidar sensors continues.
The term “lidar” stands for light detection and ranging and was initially developed alongside the invention of lasers in the 1960s. While it was intended to play a significant role in the advancement of autonomous vehicles, negative remarks from the leader of a prominent autonomous vehicle company were not favorable for the Lidar technology sector.
Chinese car manufacturers are at the forefront of the shift towards Lidar technology in the automotive industry.
In 2023, more new cars were equipped with Lidar compared to the previous four years, with Chinese automakers leading this trend. Analysts at the Yole Group predict that around 128 car models with Lidar will be launched by Chinese manufacturers this year, surpassing the expected releases in Europe and the US.
The cost of Lidar technology in Chinese cars has substantially decreased, with an average price of USD 450-500, compared to the global average of USD 700-1000. The global market for Lidar in passenger cars, light commercial vehicles, and robotaxis was estimated to be USD538 million in 2023, marking a 79% increase from the previous year.
Although more passenger cars are currently integrating Lidar compared to robotaxis, this gap is expected to narrow as the market continues to expand. Japanese and South Korean car manufacturers are also likely to introduce car platforms with Lidar in 2024 or shortly thereafter. The decreasing cost of Lidar technology has facilitated its adoption in lower-priced car segments.
This trend highlights how certain technologies may take time to mature but can experience rapid growth once their moment arrives. For example, QR code technology only gained prominence in Australia after the COVID-19 lockdowns, and Bluetooth technology, developed by Hedy Lamarr in 1941, became widely utilized in recent decades.
Despite Elon Musk’s previous skepticism, he has now begun integrating Lidar into vehicles, although without a full endorsement. Lidar, which stands for “Light Detection and Ranging”, utilizes laser projections to create detailed real-time maps of the surrounding environment. Besides aiding autonomous vehicles, Lidar is used for creating precise 3D scans of various landscapes and structures.
Furthermore, it played a role in the production of Radiohead’s House of Cards music video. When mounted on a vehicle, Lidar can generate accurate 3D maps of the surroundings up to 60 meters in all directions, enhancing the vehicle’s ability to detect obstacles and avoid collisions Despite its cost, Lidar provides visibility in scenarios where other sensors may fall short.
“Lidar is a hybrid technology, situated between cameras and radar, that can detect distance and objects while discerning the shape of those objects,” said Richard Wallace, who leads the Transportation Systems Analysis group in the Center for Automotive Research.
Cameras and radar, both employed in the Tesla Model S, have their limitations, Wallace noted. “Cameras, like our eyes, rely on optics. In low light or during a blizzard, cameras struggle.”
On the other hand, radar excels at detecting objects and their distance but cannot provide information on the shape or size of the object. The radar in the Model S likely detected the truck it collided with, but it is programmed to ignore objects that resemble overhead road signs to avoid “false braking events.”
“They have to do that, otherwise imagine going down a highway and every time you come to an overpass it hits the brakes,” Wallace explained. “Clearly the algorithm needs some refinement.”
While appreciative that the Model S is not designed to be fully autonomous, Wallace suggested that Tesla may need to reconsider its stance on Lidar to achieve its self-driving ambitions.
“I know Elon Musk has said Lidar isn’t necessary. He’s obviously a smart guy, but ultimately, I believe it will be proven that Lidar is needed,” he said. “It adds a level of resiliency and redundancy that makes the integration easier to solve.”
The integration Wallace refers to involves the algorithms and intelligence that coordinate the function of the various sensors. “All sensors have their own limitations. How can you create the brain that integrates them and makes the correct decisions?”
Wallace believes that lidar and vehicle-to-vehicle communication, where each car communicates its location to others nearby, will both be crucial in building safer self-driving fleets.
Google uses Lidar units that cost up to $70,000 in its self-driving cars, although there are now units available for as little as $250. This could potentially make Lidar more accessible for the mass market.
However, simply having Lidar does not guarantee the safety of a driverless car. Google’s fleet has experienced its fair share of accidents and technical issues, although there have been no reported fatalities to date.
Tesla declined to comment but referred the Guardian to Musk’s previous comments about Lidar not being necessary for driverless navigation. The company also pointed to a list of factors in the Model S user manual that can impede the performance of autopilot, including poor visibility, bright light , damage or obstructions caused by mud, ice, snow, and extreme temperatures.
The list of limitations is accompanied by a warning stating: “Never depend on these components to keep you safe. It is the driver’s responsibility to stay alert, drive safely, and be in control of the vehicle at all times.”
The company also directed readers to a blogpost titled Your Autopilot Has Arrived, which asserts: “The driver is still responsible for, and ultimately in control of, the car. What’s more, you always have intuitive access to the information your car is using to inform its actions.”
Understanding the construction of a LiDAR system
A LiDAR system requires specific equipment to measure a million distances from sensors to surface points. It operates at a high speed, capable of calculating distances based on the speed of light, which is 300,000 kilometers per second. In various applications, including automotive vehicles, aircraft, and UAVs, LiDAR systems consist of three main components:
Laser Scanner
LiDAR systems emit laser light from different mobile platforms like automobiles, airplanes, and drones, and receive the light back to measure distances and angles. The scanning speed significantly impacts the number of points and echoes recorded by a LiDAR system, while the choice of optic and scanner profoundly influences its resolution and operating range.
Navigation and positioning systems
It is essential to determine the absolute position and orientation of a LiDAR sensor when mounted on aircraft, a vehicle, or an unmanned aerial system (UAS) to ensure the usefulness of the captured data. Global Navigation Satellite Systems (GNSS) provide accurate geographical information about the sensor’s position (latitude, longitude, height), while an Inertial Measurements Unit (IMU) precisely defines the sensor’s orientation (pitch, roll, yaw) at this location. The data recorded by these devices are then used to create static points comprising the basis of the 3D mapping point cloud.
Computing technology
Computation is necessary for a LiDAR system to define the precise position of echoes and make the most of the captured data. It is used for on-flight data visualization, data post-processing, and to enhance precision and accuracy in the 3D mapping point cloud.
Matching project needs with LiDAR specifications
Laser Scanner: Evaluate the accuracy, precision, point density, range, and swath that best suits your project requirements. GNSS: Assess the compatibility of the GNSS reference station (terrestrial) and GNSS receiver (moving) with the GNSS used (GPS, GLONASS, BEiDOU, or Galileo) and determine if a ground station is needed. Batteries: Determine if the LiDAR system uses internal or external batteries and the required autonomy to cover the intended mapping area. Mounting: Consider if the LiDAR system can be easily mounted on the aerial/airborne platform (drone, aircraft) or automotive platform (vehicle) you intend to use. Datafile: Look into the format of the generated data file, for example, YellowScan LiDAR models associated with CloudStation software can export point clouds as .LAZ or .LAS files, as well as digital terrain or elevation models. Data Post-processing: Assess the ease of using the data and delivering the best 3D mapping point cloud to your end customer. Consider classification, colorization using additional high-resolution cameras, DTM generation, and what to do with the post-processed data.
Uncovering applications of LiDAR on UAVs
Energies & Utilities: conducting powerline surveys to identify sagging issues or plan trimming operations Mining: undertaking surface/volume calculations to enhance mine operations (stockpile, excavation) or decide on mine extension Construction & engineering: creating maps for leveling, planning, and infrastructure optimization (roads, railways, bridges, pipelines, golf courses) or renovating post natural disasters, conducting beach erosion surveys to develop emergency plans Archaeology: mapping through forest canopies to accelerate discoveries of objects Forestry: mapping forests to optimize activities or assist in tree counting Environmental research: measuring growth speed and disease spreading
Exploring the use of UAV for LiDAR mapping
Learn more about DJI UAVs for LiDAR mapping such as DJI M600 or DJI M300.
Selecting the appropriate UAV for your next LiDAR surveys is a challenging task. Read further about how to select your UAV to commence your LiDAR operations.
Discover the crucial aspects of a good UAV LiDAR integration or some instances of integrating our LiDAR models on drone or airborne platforms.
Is it possible for LiDAR to penetrate through trees?
LiDAR systems with multiple returns and higher pulse rates can aid in reducing the impact of vegetation interference. Additionally, specialized processing methods can be utilized to filter out foliage and generate more precise ground elevation models. While LiDAR can offer valuable insights even in vegetated areas, its effectiveness relies on the specific conditions and technology used.
Can LiDAR be employed for scanning in low light?
Indeed, LiDAR can be utilized for scanning in low light since it does not rely on visible light like conventional cameras. LiDAR systems emit their own laser pulses, which are then reflected off objects and returned to the sensor. The system measures the time it takes for the pulses to return, enabling the creation of a detailed 3D map of the environment, irrespective of ambient light conditions.
This functionality makes LiDAR particularly useful for tasks such as autonomous driving vehicles, surveillance, and navigation under low-light or nighttime conditions. Moreover, LiDAR is increasingly utilized in the consumer market, as seen in Apple’s iPhone. The integration of LiDAR technology into the iPhone’s camera results in faster, more accurate autofocusing, particularly in low-light conditions, contributing to the delivery of sharp, focused images even in challenging lighting situations.
How does LiDAR identify objects?
LiDAR identifies objects through the emission of rapid laser pulses and the use of sensors to measure the time it takes for those pulses to bounce back after hitting surfaces. The system calculates the distance based on the time delay, creating a point cloud that represents the shape and position of the object in 3D space. This enables accurate object detection and mapping in various applications such as autonomous driving vehicles, environmental monitoring, and others. The point cloud can also be utilized to generate a digital elevation model (DEM) or a digital terrain model (DTM).
Can LiDAR penetrate through the ground?
LiDAR is capable of penetrating the ground to some extent, depending on the material and conditions. The ability of LiDAR to penetrate the ground is constrained by factors like the type and thickness of the material. For instance, LiDAR can penetrate vegetation or even water, employing bathymetric lasers to measure underwater surface depth. However, dense soil or rock cannot be penetrated by LiDAR. Ground-penetrating radar (GPR) is a distinct technology designed specifically to penetrate the ground and provide information about subsurface structures, functioning on different principles compared to LiDAR scanning.
At what range is LIDAR accurate?
The accuracy of LiDAR can vary based on several factors, including the type of LiDAR system, the technology utilized, the quality of the equipment, and the specific application. Generally, LiDAR is renowned for its high accuracy in measuring distances, often achieving sub-centimeter to centimeter-level accuracy under favorable conditions.
For airborne LiDAR systems, commonly employed for mapping large areas, the accuracy can be maintained even at longer distances. High-end airborne LiDAR systems can attain accuracies of a few centimeters at distances ranging from tens to hundreds of meters.
It’s essential to note that accuracy can be influenced by factors such as atmospheric conditions, the reflectivity of the surfaces being measured, and the quality of the LiDAR equipment. Calibration, data processing, and correction techniques in software also play a critical role in achieving accurate results.
Self-Driving Cars
What embodies the “future” more than a self-driving car? Over the past 30 years, we’ve envisioned cyberpunk dystopian worlds where androids dreaming of electric sheep evade captors by boarding driverless vehicles. Perhaps these vehicles could fly, but you understand the point.
Autonomous vehicles are no longer just a dream. While most of them are still in prototype stage, they are unquestionably a reality today. Numerous companies
Artificial Neural Networks in Financial Services
In the realm of AI banking and finance, Artificial Neural Networks are well-suited for making predictions. This capability is largely due to their capacity to swiftly and accurately analyze vast amounts of data. Artificial Neural Networks can process and interpret both structured and unstructured data . Once this information is processed, Artificial Neural Networks can make precise forecasts. The accuracy of the predictions improves as more information is provided to the system.
Enhancing Operational Efficiency of Banks
The predictive capabilities of Artificial Neural Networks are not limited to the stock market and exchange rate scenarios. These capabilities also have applications in other areas of the financial sector. Mortgage assessments, overdraft calculations, and bank loan evaluations are all based on the analysis of an individual account holder’s statistical information. Previously, the software used for this analysis was driven by statistics.
Banks and financial providers are increasingly transitioning to software powered by Artificial Neural Networks. This shift enables a more comprehensive analysis of the applicant and their behavior.
As a result, the information presented to the bank or financial provider is more accurate and valuable. This, in turn, allows for better-informed decisions that are more suitable for both the institution and the applicant. According to Forbes, many mortgage lenders anticipate a surge in the adoption of systems powered by Artificial Neural Networks in the coming years.
Tesla has been making promises regarding its Full Self-Driving (FSD) capability for some time, even selling a beta version to customers willing to purchase the software. FSD is marketed as a more advanced option compared to its Autopilot and Enhanced Autopilot driver assistance features.
Often characterized as the more sophisticated but still experimental component of Tesla’s driver assistance lineup, FSD includes what the company refers to as Autosteer on City Streets along with Traffic and Stop Sign Control.
The most recent update, version 12.1.2, stands out from earlier iterations due to one significant change.
“FSD Beta v12 enhances the city-streets driving technology by implementing a single, comprehensive neural network trained using millions of video clips, thus replacing over 300k lines of dedicated C++ code,” Tesla noted in its release documentation.
Neural networks, commonly known as artificial neural networks (ANNs), are generally described as a form of machine learning technology that improves its efficiency and accuracy through training data over time. In Tesla’s application, these neural networks have been educated using actual video footage to make decisions instead of relying on extensive lines of code.
The introduction of neural networks in this FSD beta update marks a new direction for the automaker, which has shifted to a vision-exclusive method for its software and sensor configuration in recent years, moving away from the combination of vision, radar, and lidar used by competitors working on autonomous technologies.
This transition to a neural network-centric approach in FSD beta reinforces Tesla’s commitment to a vision-only sensor setup, which helps clarify the decision to eliminate other sensors a couple of years back.
The efficacy of the latest beta version in delivering enhancements remains uncertain, but numerous overarching questions still linger regarding FSD.
For example, it hasn’t become any clearer over time to pinpoint exactly what Tesla envisions FSD will ultimately provide.
“Full autonomy will depend on achieving reliability that far surpasses human drivers, as evidenced by billions of miles of driving experience, along with obtaining regulatory approval, which may vary in timing by region,” Tesla states concerning its three systems, while deliberately avoiding the SAE level classification.
Previously, Tesla has informed California regulators that FSD’s capabilities do not exceed SAE Level 2.
If this still holds true, it makes sense from a regulatory standpoint, as SAE Level 3, often defined as systems allowing the driver to disengage from active monitoring, are currently allowed only in a select few states. This has already resulted in considerable challenges for European and Japanese automakers who have implemented such systems in other markets but cannot do so across all states in the U.S.
These SAE Level 3 systems permit drivers to look away from the road for extended periods, enabling them to read, watch videos, or respond to emails—capabilities that FSD does not currently permit.
“Always keep in mind that Full Self-Driving (Beta) does not make Model Y autonomous and necessitates that the driver remains fully attentive, ready to act instantly at any moment,” Tesla clarifies on its site.
If FSD were to suddenly acquire the capability to function for hours without the need for driver intervention or even attention to external conditions, Tesla could face substantial regulatory challenges in the majority of U.S. states and would have to acknowledge it as a Level 3 system.
A more pressing concern is that Tesla has spent five years refining what still appears to be a Level 2 system without officially labeling it as such, while other manufacturers, including Mercedes-Benz, have already begun deploying SAE Level 3 systems in select U.S. states as well as abroad.
Tesla has also not disclosed any developments regarding SAE Level 4 robotaxi technology, which it once aimed to achieve, but which has already seen operational rollouts in various U.S. cities by other companies, alongside some setbacks and controversies over the past year.
It’s important to note that all these Level 3 and Level 4 systems utilize more than just vision, incorporating a variety of radar and lidar sensors in addition to cameras.
The future evolution of FSD into a Level 3 system remains uncertain in the coming years, especially as regulators in individual states continue to be cautious about such systems from other manufacturers.
It’s time to explore again how Tesla plans to execute FSD. Once more, a thank you to SETI Park on X for their outstanding reporting on Tesla’s patents.
This time, the focus is on Tesla developing a “universal translator” for its AI, which enables its FSD and other neural networks to seamlessly adjust to various hardware systems.
This translation layer will let a complex neural network—such as FSD—function on virtually any platform that fulfills its basic requirements. This will significantly shorten training times, accommodate platform-specific limitations, and enhance both decision-making and learning speed.
Let’s examine the main points of the patents and simplify them as much as possible. This latest patent is likely how Tesla plans to apply FSD in non-Tesla vehicles, Optimus, and other devices.
Decision-Making
Consider a neural network as a mechanism for making decisions. However, constructing one also involves making a series of choices regarding its design and data processing techniques. Think of it like selecting the right ingredients and culinary methods for a complicated recipe. These selections, known as “decision points,” are vital to how effectively the neural network operates on a particular hardware platform.
To automate these choices, Tesla has created a system akin to a “run-while-training” neural network. This clever system evaluates the hardware’s capabilities and modifies the neural network in real-time, guaranteeing peak performance regardless of the platform.
Constraints
Every hardware platform has its own limitations—such as processing capabilities, memory size, and supported instructions. These limitations serve as “constraints” that determine how the neural network can be set up. Picture it like attempting to bake a cake in a small kitchen with a limited oven and counter space. You must adjust your recipe and methods to suit the constraints of your equipment or environment.
Tesla’s system automatically detects these constraints, enabling the neural network to function within the hardware’s limits. Consequently, FSD could be transferred between vehicles and quickly adapt to a new context.
Now, let’s outline some of the essential decision points and constraints involved:
Data Layout: Neural networks handle extensive amounts of data. The way this data is organized in memory (the “data layout”) greatly influences performance. Different hardware setups may favor distinct layouts. For instance, some may operate more efficiently with data arranged in the NCHW format (batch, channels, height, width), while others may prefer NHWC (batch, height, width, channels). Tesla’s system autonomously chooses the best layout depending on the target hardware.
Algorithm Selection: Numerous algorithms can be employed for functions within a neural network, including convolution, which is vital for image processing. Some algorithms, like the Winograd convolution, offer faster processing but may need specific hardware support. Others, such as Fast Fourier Transform (FFT) convolution, are more flexible but could be slower. Tesla’s system smartly selects the optimal algorithm according to the capabilities of the hardware.
Hardware Acceleration: Contemporary hardware often comes with specialized processors intended to boost the speed of neural network tasks. These include Graphics Processing Units (GPUs) and Tensor Processing Units (TPUs). Tesla’s system detects and leverages these accelerators, maximizing performance on the specific platform.
Satisfiability
To discover the ideal configuration for a specific platform, Tesla utilizes a “satisfiability solver.” This powerful tool, particularly a Satisfiability Modulo Theories (SMT) solver, functions like an advanced puzzle-solving mechanism. It translates the neural network’s requirements and the hardware’s limitations into logical formulas and searches for a solution that meets all constraints. Imagine it as assembling puzzle pieces once the borders (constraints) have been established.
Here’s the process, step-by-step:
Define the Problem: The system converts the needs of the neural network and the constraints of the hardware into a series of logical statements. For instance, “the data layout needs to be NHWC” or “the convolution algorithm must be compatible with the GPU.”
Search for Solutions: The SMT solver navigates through the extensive range of potential configurations, employing logical reasoning to dismiss invalid options. It systematically experiments with various combinations of settings, such as adjusting data layouts, choosing algorithms, and enabling hardware acceleration.
Find Valid Configurations: The solver determines configurations that comply with all constraints. These represent possible solutions to the “puzzle” of efficiently running the neural network on the selected hardware.
Optimization
Identifying a working configuration is just one part of the equation; pinpointing the optimal configuration is the true challenge. This involves optimizing various performance metrics, such as:
Inference Speed: The rate at which the network processes data and renders decisions. This aspect is crucial for real-time functionalities like FSD.
Power Consumption: This refers to the energy utilized by the network. It is crucial to optimize power consumption to extend battery life in both electric vehicles and robots.
Memory Usage: This indicates the amount of memory needed to store the network along with its data. Reducing memory usage is particularly vital for devices with limited resources.
Accuracy: It is critical to ensure that the network retains or enhances its accuracy on the new platform for the sake of safety and reliability.
Tesla’s system assesses potential configurations using these metrics, choosing the one that provides the best overall performance.
Translation Layer vs Satisfiability Solver: It’s essential to differentiate between the “translation layer” and the satisfiability solver. The translation layer encompasses the entire adaptation process, managing components that evaluate the hardware, set the constraints, and call upon the SMT solver. The solver is a specific tool employed by the translation layer to discover valid configurations. You can think of the translation layer as the conductor of an orchestra, whereas the SMT solver is one of the instruments playing a key role in the harmonious adaptation of AI.
Simple Terms: Picture having a complicated recipe (the neural network) and wanting to prepare it in various kitchens (hardware platforms). Some kitchens have a gas stove, while others use electricity; some feature a spacious oven, and others only have a small one. Tesla’s system serves as a master chef, adjusting the recipe and techniques to best suit each kitchen, ensuring a delectable meal (efficient AI) regardless of the cooking environment.
What Does This Mean? To summarize and contextualize this for Tesla—there’s a lot to it. Essentially, Tesla is developing a translation layer capable of adapting FSD for any platform that meets the minimum requirements.
This implies that Tesla can quickly enhance the rollout of FSD across new platforms while identifying the optimal configurations to maximize both decision-making speed and energy efficiency across those platforms.
Overall, Tesla is gearing up to license FSD, indicating an exciting future. This isn’t limited to vehicles; don’t forget about Tesla’s humanoid robot, Optimus, which also operates on FSD. FSD itself may represent a highly adaptable vision-based AI.
What Tesla is Changing to Improve Sentry Mode Efficiency: Recently, Tesla implemented power efficiency upgrades for the Sentry Mode feature of the Cybertruck with software update 2024.38.4. These upgrades significantly enhance the vehicle’s power consumption while Sentry Mode is active.
We now have uncovered more details on how Tesla accomplished such substantial reductions in power consumption, which is estimated to be 40%.
Tesla implemented architectural changes regarding how it processes and analyzes video—optimizing the allocation of tasks among different components. Although the Cybertruck is the first to enjoy these advancements, Tesla intends to roll out these upgrades to other vehicles in the future.
Sentry Mode Power Consumption: Tesla vehicles are equipped with two primary computers: the MCU (Media Control Unit), which drives the vehicle’s infotainment system, and the FSD computer, responsible for Autopilot and FSD functionalities. Both computers remain active and powered whenever the vehicle is awake, drawing around 250-300 watts.
Generally, this power is only utilized when the vehicle is awake or in motion. This is not a major issue as the car automatically enters sleep mode and deactivates its computers after approximately 15 minutes of inactivity. However, the larger concern is that these computers must stay powered on when Sentry Mode is engaged, resulting in a continuous 250-watt draw during this time.
Interconnected System: Currently, the vehicle’s cameras are linked to the FSD computer, which in turn connects to the MCU, followed by the USB ports. Due to this interconnected structure, everything must remain powered. Footage needs to be streamed from the FSD computer to the MCU, where tasks like motion detection take place. The data then has to be compressed before it can finally be recorded on the USB drive. This lengthy process necessitates that multiple computers remain powered to record and save live video.
Architectural Changes: Tesla is implementing architectural modifications to mitigate the high power consumption of Sentry Mode by redistributing tasks among the vehicle’s computers. By reallocating motion detection and possibly compression tasks to the FSD computer, Tesla can now allow the MCU to remain in sleep mode. The MCU is still necessary to transfer the video to the USB drive, but Tesla can wake it up only when it is required.
For example, while the FSD computer will still manage the connection to the vehicle’s cameras, it will also be responsible for detecting motion. When a Sentry event is triggered, it can activate the MCU to save the data to the USB drive and then return it to sleep mode.
This strategy ensures that the MCU does not stay continuously powered for video analysis and compression, activating only when it is needed to manage data.
Processor Isolation & Task Allocation
Tesla’s existing architecture keeps the Autopilot Unit (APU) distinct from the MCU. This separation is motivated by several factors, with safety being the primary concern. The MCU can be rebooted independently during a drive without affecting the APU and crucial safety features.
Furthermore, isolating the APU from the MCU allows tasks that are better suited for each component—such as processing and image transcoding—to be assigned to the appropriate processing unit. This ensures that both the APU and MCU operate at their peak power and performance levels, promoting more efficient energy consumption.
Kernel-Level Power Management
Tesla is focusing on more than just full self-driving (FSD) enhancements or new vehicle visualization updates; they are also optimizing the core kernel of the operating system. Though not extensively employed, Tesla minimizes the clock speed of both the MCU and APU, which leads to lower power consumption and reduced heat output.
Moreover, other kernel enhancements and programming techniques, similar to those Tesla applies to boost the efficiency of its FSD models, contribute to the overall improved efficiency of the vehicles.
Additional Benefits
Given that Tesla vehicles come equipped with a Dashcam that handles video processing, it’s likely that these extra power savings will be observed when the vehicle is operational. This could also influence other functionalities, such as Tesla’s Summon Standby feature, which keeps the vehicle awake and processing video, allowing users near-instant access to the Summon feature of the vehicle.
Roll Out to Other Vehicles
Although the Cybertruck was the first to benefit from these power enhancements in Sentry Mode, it has been indicated that these improvements will be extended to other vehicles as well. Tesla is initially rolling out these changes with the Cybertruck, taking advantage of its smaller user base for preliminary testing before broadening the distribution to other models.
USB Port Power Management
To further enhance energy conservation and reduce waste, Tesla now shuts down USB ports even when Sentry Mode is activated. This adjustment has affected numerous users who depend on 12v sockets or USB ports for powering accessories like small vehicle refrigerators.
It remains unclear if these modifications to Sentry Mode directly influence this change or if the power to the 12v outlets was turned off solely due to safety considerations.
Asking oneself whether to switch to electric vehicles has become increasingly important for drivers. More and more car manufacturers are developing electric vehicles, and some countries have pledged to prohibit the sale of gas-powered vehicles. It seems that the future is moving towards electric vehicles .
Although history has been full of unexpected changes, we firmly believe that electric vehicles are the future of the auto industry. This article aims to outline why, while examining recent developments in the EV market and the current path of the EV industry, especially when compared to traditional vehicles.
What Does the Future Hold for Electric Vehicles and the Automotive Industry?
While there are many small differences between electric vehicles and traditional vehicles, the most noticeable and significant distinction is their source of power. Electric vehicles utilize electricity, which can be sourced from various places (many of which are renewable), while traditional combustion-engine vehicles rely on consuming fuel (mainly fossil fuel). Despite our world’s heavy reliance on these fuels, the reality is that fossil fuels are not infinite.
Fossil fuels are a limited resource. Eventually, they will be depleted, and our gas-powered cars will become costly metal objects. Although this may seem like a distant, doomsday scenario, the years of fossil fuels remaining on the planet are measured in decades , not centuries. Some estimates suggest that we may run out by 2060… which is less than 40 years away.
Not to mention the issue of pollution and climate change. According to the EPA, approximately 29% of greenhouse gas emissions originate from transportation, making it the largest single contributor of GHG emissions in the US Cars are primary producers of pollutants with direct harmful effects on human health. Even if we were to sidestep the finite nature of fossil fuels by transitioning to biofuels like diesel, pollution would still be a significant problem, especially considering that diesel emits anywhere between 25 to 400 times the level of many pollutants.
In essence, the necessity of fuel, which cannot be avoided with traditional combustion engines, spells trouble for non-electric vehicles. The level of pollution they generate is unsustainable, and even if it were, we will run out sooner rather than later.
When Will Electric Cars Dominate and Why?
Determining the moment when EVs will surpass traditional cars is challenging. Will it be when there are more EV sales than traditional vehicle sales per year? When they generate more profit than traditional vehicles? Or when they constitute more than half of the vehicles on the road ? Any metric used will be subject to its own complications and biases, leaving us with an ambiguous finish line. Trying to predict when we will cross this hazy finish line is futile.
Instead, we should focus on examining the current trajectory of electric vehicles, preferably on a global scale that considers trends across different countries.
In this respect, the outlook for EVs looks promising. For one, EV sales surged by 67% between 2019 and 2020, the same year that overall vehicle sales decreased by 16%. While part of this difference could be ascribed to the theory that those with the means and desire to purchase an EV might have been more likely to have white-collar jobs that could transition to remote work without significantly impacting their income, it is unlikely that this accounts for the entire gap. Some of this growth, particularly in the United States, is attributable to two factors: legislative changes that facilitate EV adoption and the considerable improvement in EV technology, which continues to drive down costs and enhance their range and lifespan.
This combination addresses the three main concerns of potential EV buyers. In 2020, the total cost of owning an electric vehicle finally fell below the total cost of owning a gas-powered vehicle.
The World Resources Institute, mentioned earlier, indicates that the rate of EV adoption is increasing each year, following a pattern known as an S-curve. At the current pace, we could achieve 100% adoption by 2040. However, there have been recent developments that could either support or hinder this progress.
Gas Prices
It’s common knowledge that gas prices in 2022 have become a major topic of discussion. Furthermore, they are likely to rise due to the geopolitical climate. While various governments may ease this impact through subsidies, the increase in gas prices may potentially accelerate the adoption of EVs among buyers hesitated. The underlying cause of this rise in gas prices leads us to our next subject…
Global Conflict
Russia’s illegal invasion of Ukraine and subsequent war crimes have dominated world politics since March. One aspect that has not received adequate attention is Russia’s oil revenue. Russia is a major oil exporter, and oil constitutes the largest portion of its income by a significant margin. Imposing an embargo on Russian oil imports would be the most potent economic sanction that could be imposed on Russia.
However, it’s not that simple. Oil is not a commodity that can be easily replaced, especially during a period of such geopolitical uncertainty.
Shortage of Semiconductors
In contrast, numerous sectors, including healthcare and gaming, have been impacted by the scarcity of semiconductors. While alternative semiconductor options have been explored in a previous article, the existing shortage may still hinder electric vehicle (EV) production and subsequently slow down EV adoption .
Even if we were reluctant to switch to EVs, we might not have a choice by around the middle of this century. Optimistic estimates suggest that complete EV adoption may occur around 2040, but global politics could either accelerate or impede this process. Nevertheless, the certainty remains: EVs represent the future. It’s just a matter of when that future will materialize.
By now, it’s common knowledge that electric vehicles are the future, but what exactly does the future hold for EVs?
In this edition of the Bonnet blog, we’re going to take a deep dive and ask you to contemplate the outlook of the future. The good news is, there are no signs of a Mark Zuckerberg in sight.
Robust Growth in Electric Vehicle Sales
The surge in electric vehicle sales in the coming years is projected to be exceptionally rapid. After a sluggish start, EV sales are currently booming thanks to the availability of affordable home chargers and the expansion of public charging infrastructure, which is rendering “range anxiety” and “charging anxiety” things of the past.
In March, new electric and hybrid vehicle sales made up one-third of all new car registrations. This sets a precedent for what’s to come. By 2025, it’s anticipated that 20% of all new cars sold globally will be electric, with this figure rising to 40% by 2030. In the UK, this percentage should be substantially higher, which is essential given the impending climate crisis.
New Electric Vehicles to be launched
Each year, the number of automakers joining the electric vehicle market continues to rise. Alfa Romeo is gearing up to introduce its first plug-in hybrid electric vehicle (PHEV) this year, with the brand-new Tonale combining elegant style and reduced emissions.
One noteworthy addition that is poised to shake up the electric vehicle market is the Dacia Spring, which is already available for purchase in Europe and is hailed as the continent’s most affordable EV. Priced at just over €12,000 in France, equivalent to around £10,500 , the Spring could make its way to our showrooms before the year ends. With seating for four, a range of 140 miles, and a spacious trunk capable of accommodating a week’s worth of luggage, it’s sure to be a hit.
For those willing to spend a little more, how about an all-electric Maserati? The Maserati Trofeo, Maserati’s first electric model, is slated for release in 2023. The only downside is that it’s comparatively slow, almost pedestrian, with a 0-62mph acceleration in a laborious 3.8 seconds. Nevertheless, that’s not too shabby for an SUV.
VW camper enthusiasts will also be delighted to learn that Volkswagen has unveiled its first all-electric campervan, the VW ID.Buzz. It will come equipped with an 82kWh battery and is expected to offer a range of 250 miles, although the obligatory surfboard will need to be purchased separately.
Doubling the Lifespan of EV Batteries
Electric vehicle and mobile phone batteries could see their lifespan doubled, all thanks to the efforts of researchers at the University of Queensland. They have developed lithium-ion battery nanotechnology that extends the lifespan of the Li-ion batteries that power electric vehicles, mobile phones , medical equipment, power tools, and various other devices.
Put on your lab coats and protective goggles. According to the lead professor Lianzhou Wang, the team based in Australia has “developed a uniquely grown atomic-thin functional layer on the surface of a high-voltage cathode, which is the source of lithium ions and a crucial component that limits the cycle life in a battery.”
In simpler terms, the new approach involves applying a protective coating to the battery to shield it from corrosion, which is the primary reason for battery degradation over time. It is hoped that this new technology will facilitate the production of the next generation of EV batteries , which will have a lower cost, higher energy density, and longer lifespan.
As manufacturers face mounting pressure to ramp up battery production to keep up with the growing demand for EVs, this new technology could prove to be a game-changer and pave the way for enhanced EV performance and affordability.
Other EV Innovations to Anticipate
While surging sales, improved batteries, and intriguing new EV models are all relatively certain in the near future, there are also a few other EV innovations that could revolutionize electric transportation in the coming years.
Continuous Charging on Intelligent Surfaces
Imagine a scenario where your electric vehicle is constantly charged by a special technology integrated beneath the surface of the road, eliminating the need to charge it overnight or at a public charging station en route. Although smart surfaces are still a long way off and may never come to fruition, it’s an idea that has been proposed to facilitate the global transition to EVs.
Solid-State Batteries
We’ve already touched upon how advancements in battery technology will be crucial in the widespread adoption of electric vehicles. One such advancement is solid-state batteries, which promise to be safer, more efficient, and longer-lasting than current lithium-ion batteries .
Two-way EV charging
Two-way charging, also called bidirectional charging, enables energy to flow both ways, from the grid to your EV and vice versa, allowing EV batteries to function as energy storage points. Traditional one-way chargers only power your car, but bidirectional charging transforms EV batteries into energy storage units.
They can store extra energy and even sell it back to the grid, provide emergency power during outages, and connect to renewable energy sources like home solar panels to make electric vehicles self-sufficient in energy.
Bidirectional chargers are getting smaller, more affordable, and more efficient over time, with the first bidirectional home EV chargers introduced earlier this year.
Transforming current cars into future classics.
Another amusing aspect of the electric revolution is the idea that electric vehicles will soon dominate the roads, making today’s petrol and diesel vehicles the classic cars of the future.
In 20 years, you might be admiring classic Vauxhall Corsas from the early 2000s, exclaiming, “Wow, that’s a beautiful old Vauxhall Corsa in green. What a beauty,” from the window of your EV. Maybe.
Enhancing the charging experience
At Bonnet, we are shaping the future of electric vehicles. We bring together all the leading charging networks in the UK and across Europe on a single app, allowing you to easily access flat-rate charging on the most popular public and destination chargers.
What are the recent guidelines for EVs in the Highway Code?
If you ask people about what’s discouraging them from buying an EV, many are likely to point to a lack of clear and up-to-date information about EV charging points.
An AA survey of over 13,000 drivers revealed that almost one-third (30%) of drivers are unsure about their ability to recharge an electric vehicle at a public charge point, and another 39% said they wouldn’t feel confident knowing if a charge point was compatible with their car.
Given the impending ban on the sale of petrol and diesel cars from 2030, we consider this lack of clarity unclear. If we want to accelerate towards an electric vehicle future, more must be done now to demonstrate to drivers how easy the EV charging process can be.
The Highway Code has been updated to include some EV charging information… but ultimately, not enough.
As part of its report, the AA recommended that the Highway Code be amended to include essential EV information. It has been amended, yet minimally. It now includes a brief section on EV charging, but it mainly focuses on the rules relating to EV charging rather than practical charging information. The new EV section in the revised Highway Code states:
When using an electric charger, individuals should:
• Park near the charge point and avoid creating a trip hazard with trailing cables.
• Display a warning sign if possible.
• Neatly return charging cables and connectors to minimize hazards and avoid obstructing other users.
We believe the Highway Code should offer more practical information to help people understand electric cars and alleviate the uncertainties that deter them. For instance, how to operate a charger and what to do if someone parks in front of an EV charger and blocks it from use .
The uncertainty surrounding EV charging points
Apart from the lack of information about EV charging, another source of confusion for EV drivers is the fragmented car charging infrastructure. Currently, there are over 30 charging networks across the UK.
Many current charge points require the download of apps and the setup of accounts before use. Additionally, only a small number of charging points accept direct payment by debit or credit card, making driving an electric vehicle seem inconvenient to some. The good news is that it doesn’t have to be this way, as we at Bonnet have the solution.
Alleviating EV charging concerns
At Bonnet, we alleviate charging concerns for the UK’s EV drivers by providing them with the charging experience they deserve. We consolidate over 17 charging apps into one simple EV charging app that you can use to charge your electric vehicle and make payments. We also standardize pricing across different charging networks, so you always know the cost of your charging.
Moreover, if you’re uncertain about how to charge your car, we offer live updates to provide you with the latest information about the chargers you’re interested in. There’s also a live chat function that offers expert EV charging support whenever you need it .
Recent Developments in EV Battery Technology
As electric vehicles (EVs) become more common worldwide, there are notable improvements in battery technology driving this shift. The progress in EV battery technology is crucial in unlocking the full potential of electric cars and their advancements. The use of electric vehicles represents a form of clean energy that competes with traditional gasoline-powered cars.
The batteries that power these EVs are intricate and rely on multiple factors, underscoring the importance of technological advancements for an enhanced industry. This post delves into the kinds of technology utilized in EV batteries and explores new technological advancements that are enhancing the EV battery industry.
What Technology is Utilized in EV Batteries?
EVs primarily employ lithium-ion powered batteries, which have become the standard technology for powering contemporary electric cars. These batteries are considered ideal for EVs due to their lightweight nature, high energy efficiency, and ability to perform well in various temperatures. Specific types of batteries, such as lithium iron phosphate (LFP), represent an advancement over traditional lithium-ion cells, boasting a longer lifespan and a wider temperature range. These technological advancements further enhance charging speed, safety, and sustainability, paving the way for more efficient and eco-friendly EV batteries in the future. Our Roadie Portable utilizes lithium-ion batteries for its battery technology, facilitating fast and efficient charging from any location at any time.
Nickel Manganese Cobalt (NMC) Battery
The functionality of this technology is intricate, but simply put, lithium-ion batteries can support rapid and efficient charging due to their ability to maintain a high voltage. Other types of battery technologies include nickel manganese cobalt (NMC) batteries, which offer faster charging and longer lifespans, although at a higher cost. Although NMC batteries may be more efficient, there is a greater risk of fire in the event of a malfunction. NMC necessitates battery materials that are more challenging to source, making large-scale manufacturing more difficult.
Solid-State Battery
Solid-state batteries represent another type of technology that replaces the liquid or gel-like electrolyte found in traditional batteries with a solid material. In a traditional battery, ion movement occurs through a liquid or gel. However, in a solid-state battery, the solid electrolyte enables ion transfer without the need for a liquid.
This advanced battery technology can offer benefits including enhanced safety, as the battery is less prone to leakage, and faster charging, as ions can move through the solid state more quickly than the liquid state. However, solid-state batteries have downsides, including a complex manufacturing process and increased cost compared to regular lithium-ion batteries.
Lithium-Sulfur Battery
Lithium-sulfur batteries represent another variation of lithium-ion battery using sulfur as the primary material, enabling greater energy storage and longer-lasting power for EVs. Sulfur is a cost-effective and readily available material, making the production of these batteries relatively straightforward The primary challenge of this battery type is its charging cycle.
While lithium-ion batteries can undergo thousands of charge cycles, providing a long lifespan for EVs, lithium-sulfur batteries struggle to complete nearly as many charging cycles. The sulfur wears down other parts of the battery, resulting in a shorter lifespan compared to lithium-ion batteries.
Who is Pioneering New EV Battery Technology?
Most recently, the US Department of Energy has made strides in developing longer-range lithium-ion batteries, which could lead to increased charging power and improved EV capabilities. This advanced battery technology could potentially boost the popularity of EVs, making products like the Roadie Portable more essential than ever. The Roadie is a new EV technology that is immediately deployable, capable of providing much-needed charge from any location at any time.
It comprises modular batteries that can be stacked to extend range and accommodate all charging needs. SparkCharge , we are continually developing new EV technology to enhance charging time and convenience for all fleets and drivers.
Toyota
Toyota has also achieved a significant breakthrough in EV technology development. With their new advancements in solid-state EV battery technology, they have created a battery that boasts a 10% reduction in cost and a 20% increase in range. Despite indicators pointing to new battery types becoming the standard in the EV industry, lithium-ion batteries currently lead the pack when considering all factors. Toyota plans to introduce their new battery types in 2026 and 2027, potentially influencing the standard EV battery technology.
What is the most effective battery technology for electric vehicles (EVs)? Although numerous types of EV batteries are accessible in the market, lithium-ion batteries have emerged as the top choice for several reasons. Their well-established manufacturing process and prolonged life cycle make them the preferred option. When considering common EVs such as hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles, it becomes evident that lithium-ion batteries are the superior choice.
What are the advantages of Lithium Ion Batteries?
1. Charging Speed
Rapid charging is a crucial consideration in selecting the right battery. Lithium-ion batteries have made significant advancements in charging speed, which is cost-effective and widely available. With various options including portable chargers and charging services offered at SparkCharge, lithium-ion batteries are equipped to power both personal and fleet EVs. By leveraging our Roadie Portable or charging-as-a-service (CaaS) programs, achieving swift charging speed and efficiency is more convenient than ever before. We provide Level 3 (DC Fast Charging) , the most efficient charging option that gets your EV back on the road quickly.
2. Energy Density
Lithium-ion batteries currently offer a favorable balance between energy density and weight, enabling EVs to cover longer distances on a single charge without the hassle of frequent charging. Researchers are alternative exploring technologies such as solid-state batteries and lithium-sulfur batteries to enhance the energy density of lithium-ion batteries and energy storage. Nevertheless, the energy density provided by lithium-ion batteries is highly efficient and reasonable in terms of cost.
3. Cost
The cost of batteries is a significant factor in the selection of the best battery for an EV. Over the years, lithium-ion batteries have experienced substantial cost reductions due to increased production and wide availability. Other technologies such as solid-state batteries are currently more expensive to manufacture, making them less suitable for fleet use and large-scale production.
4.Safety
Overall, lithium-ion batteries are a secure option. Although there is always a potential risk of overheating, this should not be a concern when lithium-ion batteries are handled with care. As long as proper steps are taken to preserve their lifespan, they are safe as car batteries.
5.Durability
Long lifespans and the ability for reliable, consistent charging are crucial factors for EV batteries, ensuring their full support for the performance of the vehicle. Lithium-ion batteries have made significant advancements in this aspect, capable of powering both commercial and personal EVs. Driving range is a critical factor for all EVs, and lithium-ion batteries stand out as the most effective option for covering many miles of travel.
Overall, advancements in battery technology have played a crucial role in making electric vehicles more attractive, practical, and accessible to a broader range of consumers and businesses. With ongoing research and development, we can expect further breakthroughs that will continue to shape the future of electric mobility and the benefits associated with driving an electric vehicle. With our charging solutions including the Roadie Portable and CaaS programs, we are equipped to charge all EVs. SparkCharge has all your EV requirements covered, providing charging when and where you need it.
Electric vehicles are no longer a niche market. As major automotive companies gear up for mass production, are we on the brink of an electric revolution? Electric vehicles (EVs) have been in existence for well over 150 years – significantly longer than their petrol and diesel personnel. However, it is only in the last few years that drivers and car manufacturers have started to recognize the potential for an electric car revolution.
Advancements in battery construction and rapid charging technology mean that, for the first time since the 1870s, electricity has the opportunity to replace fossil fuels as the driving force behind the world’s transportation systems.
Is an all-electric future probable?
The replacement of billions of petrol cars with electric vehicles will not happen overnight, but many analysts predict that an all-electric future is increasingly likely. Several European countries have enshrined ambitious EV targets into law, with France and the UK both aiming to prohibit the sale of fossil-fueled cars by 2040. Additionally, EV sales are surging globally, with a 70% increase in 2018 alone.
For years, electric cars were only available from a handful of companies – primarily Tesla, along with the BMW i3, the Nissan Leaf, and Toyota’s Prius as the most well-known examples. Now, nearly every automotive company on the planet is entering the arena.
At the 2019 Geneva Motor Show, there was a widespread adoption of electrification. Numerous new electric models were on display as renowned brands gear up for mass production, including Volkswagen, Porsche, Volvo, and Audi. Mercedes’ parent company, Daimler, declared that they would have electric versions of their entire fleet by 2022, including popular models like the newly introduced smart car.
“Each year in the United States, 53,000 premature deaths are caused by exhaust emissions from fossil fuel transport, which are particularly harmful to children, the elderly, and low-income communities.”
Electric cars are becoming increasingly popular. However, can they truly compete with traditional gasoline-powered vehicles? And what might persuade consumers to choose to charge their next car at an electric plug instead of refueling it at a gas station?
The appeal of electricity
For some individuals, the primary reason for purchasing an electric vehicle (EV) is environmental. Electric vehicles produce around 30% fewer carbon emissions than their gasoline or diesel gasoline, even if the electricity used to power them is generated from fossil fuels.
Furthermore, as nations continue to transition to renewable energy sources, electric vehicles will become even more eco-friendly – potentially up to 90% less carbon-intensive than gasoline models.
Health impacts are also a significant consideration, particularly in densely populated urban areas where traffic-related air pollution is a growing concern. In the US alone, exhaust emissions from fossil fuel transport cause 53,000 premature deaths per year and have a particularly detrimental effect on children , the elderly, and low-income communities.
However, for most people, the most compelling argument for switching to electric vehicles will be financial savings. Here’s where electric cars offer significant advantages for cost-conscious consumers.
Saving money, saving the planet
Firstly, fully electric vehicles are exempt from road tax in the UK and are not subject to congestion or emission charges, which are currently in place in London and are being considered for many other cities and even certain highways in the coming years.
Electric vehicles are mechanically much simpler than internal combustion engine vehicles, resulting in service and maintenance costs that are approximately half those of a gasoline car. EVs also retain more of their value over time, with a strong second-hand market leading to a 20% increase in the value of a used Nissan Leaf over the past year.
However, the most significant factor is the cost of fuel. According to Go Ultra Low, a full electric charge could cost as little as £3, which translates to approximately 3p per mile, compared to about 13p per mile for the average gasoline car – more than four times as expensive. Over the lifespan of a car, this difference could save drivers tens of thousands of pounds.
Of course, electric vehicles currently have a higher upfront cost compared to traditional gasoline vehicles. However, with major manufacturers ramping up mass production, continuous advancements in battery technology, and government incentives and grants aimed at encouraging adoption, costs are expected to continue decreasing.
Destination in sight – but more miles to go
While the UK is behind some nations like Norway in the pace of the electric vehicle transition, the rate of sales growth is still remarkable. In 2013, there were fewer than 3,000 electric vehicles in the UK, but by the end of 2018, there were over 5,000 new electric vehicle registrations every month.
The number of charging points is keeping up with demand, nearly doubling to 20,000 points over the past two years. While infrastructure remains a concern for many drivers, the installation of EV chargers is now a significant aspect of power companies’ future strategies as they strive to provide a low-carbon connection gateway.
As electric vehicles continue to grow in number and the government continues to advocate for the “electric revolution,” an all-electric future appears increasingly feasible. However, there is still a long way to go.
Currently, electric vehicles account for less than 5% of the total number of vehicles on UK roads and an even smaller percentage globally. If societies and the planet are to realize the substantial environmental benefits of an electric future, governments and car manufacturers will need to maintain their commitment for many years to come.
Can ‘lightweighting’ combat range anxiety?
One of the primary challenges for electric vehicles is the distance they can travel on a single charge, prompting some manufacturers to reduce the weight of their cars to maximize battery life.
It appears to be a straightforward decision. The widespread adoption of electric vehicles could trigger a potential “positive tipping point” in efforts to mitigate global warming. However, many drivers are still choosing not to transition to this low-carbon technology. This decision means that while the uptake of electric vehicles has been swift, it has been slower than anticipated by some car manufacturers.
Many consumers are not transitioning to electric vehicles as fast as anticipated due to factors such as pricing, charging infrastructure, and concerns about the vehicle’s range, also known as “range anxiety”.
Drivers desire the ability to charge their electric vehicles in the same amount of time it takes to fill up a traditional fuel tank and they also want the same mileage per charge from the battery, according to Achyut Jajoo, senior vice president and general manager of manufacturing and automotive at Salesforce, which recently conducted a survey of 2,000 drivers regarding consumer preferences.
With current lithium-ion battery technology, electric vehicles have limitations on how far they can travel.
At the Consumer Electronics Show (CES) in Las Vegas, Nevada, USA this week, indications suggest that some auto manufacturers are seeking innovative ways to overcome these adoption challenges, particularly in the North American market. Their proposed solution is to make cars lighter.
Andrew Poliak, US chief technology officer of Panasonic Automotive, mentioned that “Every ounce of that weight reduction improves range.” Panasonic claims to have developed components, such as car speakers and audio systems, which weigh 30-60% less and consume 60% less power without compromising performance.
Panasonic showcased two-inch (5cm) speakers at CES that can produce sound equivalent to that of larger six-inch (15cm) speakers in the car’s door. This technology reduced significant weight in the doors, and Panasonic intends to further lighten the interior of vehicles using this concept.
At CES in 2023, the “lightweighting” concept from Panasonic is featured inside the Fisker Ocean One All-Electric SUV and the Infiniti QX80. Panasonic is also presenting a see-through concept vehicle, referred to as their device car, to demonstrate the various components the company is optimizing for car manufacturers.
Another prominent car manufacturer, Honda, is exploring a different crucial element in electric vehicles with the aim of reducing weight—the battery itself.
Honda has made significant investments in developing solid-state batteries, which are smaller and lighter than the conventional lithium-ion batteries commonly used in most electric vehicles. These batteries can also charge faster and are less susceptible to heat-related damage from fast-charging.
Chris Martin, a spokesperson for Honda, explained that not having to worry about the battery overheating means safety features may not be necessary, offering another method to reduce the vehicle’s weight.
In 2023, electric vehicles experienced a mixed year. While private user demand in the UK declined, company fleet orders increased. Some manufacturers cautioned that the rapid growth suggested by global predictions is likely to slow down. However, lighter-weight components could potentially help reduce the cost of these vehicles as well.
“I think it’s inevitable that as the technology advances, the capital costs for an electric vehicle will go down,” says Poliak.
The question that remains is whether consumers will believe that much lighter electric cars can truly cover long distances.
The biggest danger for electric cars may be their batteries.
The battery-operated electric vehicle is gaining traction, but faces a significant obstacle – the battery itself. What is necessary to make the environmentally friendly car become widely accepted?
If you visit wealthy neighborhoods in California such as La Jolla or tech-savvy ones like Mountain View, you will catch a glimpse of what is to come. Specifically, the future of cars. Every other car on the road is either a Tesla, Nissan Leaf, Toyota Prius, or something similar. These electric and hybrid vehicles seamlessly integrate with regular traffic, and many businesses, shopping centers, and homes have installed charging stations.
Electric car manufacturers are investing substantial amounts of money to make this the future that everyone will eventually experience. The question is how feasible it is to expand from small enclaves to an entire country.
In a different part of California, Elon Musk’s Tesla Motors recently proposed constructing a massive battery factory at an undisclosed location in the southwestern United States (which is a topic of much speculation). This so-called “Gigafactory” is projected to cost $5 billion and is planned to manufacture lithium-ion batteries for 500,000 cars by 2020 – exceeding the worldwide production in 2013.
However, will Tesla’s plan seem outdated by the time the factory becomes operational? Some experts think so. Phil Gott, the senior planning director at IHS Automotive, believes that Tesla’s ambitious plan is “likely premature”. New technologies are being developed that could provide better alternatives to address one of the major limitations for electric vehicles.
The issue these cars encounter is that batteries are large and heavy, allowing only a limited number to be installed. Take, for example, the Tesla Model S, which has a battery pack that is approximately two meters long and 1.2 meters wide, installed flat along the car’s floor. In the top-tier model, this provides a range of around 300 miles (482km) before requiring a recharge. The Nissan Leaf achieves a range of about 80 miles (128km). Additionally, recharging is a much slower process compared to refueling with petrol.
So, how can a superior battery be developed? Fundamentally, a battery comprises a positive and negative electrode, a separator, and an electrolyte. Various materials can serve as electrodes, allowing for different energy storage capacities based on different material combinations. However, a compromise is always necessary as battery life and safety characteristics change with the materials. While lithium-ion batteries are popular, they have been implicated in fires aboard planes, and their transport is restricted. Anything more reactive or unstable could pose a hazard. Finding the right combination, however, could yield significant benefits.
Recent advancements are part of a long series of improvements over the years. Initially, there were lead-acid batteries, which are still widely used in cars due to their size. Then came NiCad (nickel-cadmium) batteries, representing a new era of rechargeable batteries for portable technology such as laptops, phones, and remote control cars. Following that, NiMH (nickel metal hydride) batteries with about twice the capacity or energy density were developed. Presently, modern devices and electric cars rely on lithium-ion, or Li-ion, batteries.
Looking ahead, expect battery technology to have progressively more complex names; for instance, LiNiMnCo (lithium–nickel-manganese-cobalt-oxides). These materials have intricate properties, and efforts are ongoing to understand not only why these materials work, but also exactly how they work – the basic physics of the electrons moving within the materials.
“We are working on materials at Argonne that can potentially double the current energy density available for batteries,” says Daniel Abraham, a material scientist at Argonne National Laboratory, located outside Chicago in the US. “We conceive or imagine the types of materials we would like to work with, then we attempt to create the materials in the laboratory.”
Presently, the buzz is surrounding lithium-air, or more accurately, lithium-oxygen, and lithium-sulfur batteries. If they can be made to work under all conditions, lithium-oxygen batteries, in particular, would represent a tenfold improvement over current Li-ion batteries. “This is an area of great interest at the moment,” states Abraham.
Indeed, Volkswagen has hinted at exploring lithium-air batteries. The specific chemical/material combination they are using has not been disclosed as development work continues. The company’s engineers have not confirmed whether the technology has been tested in a car or if it is still at the ‘lab bench’ stage.
Despite the revolutionary potential of this technology, the technical challenges of ensuring a consistent, reliable, safe, and long-lasting Li-air battery are significant. So far, the electrodes have proven to be unstable.
Are you interested in electric cars?
The number of electric vehicles bought in the US is expected to increase substantially. However, concerns remain about the upcoming revolution, from drivers’ “range anxiety” to environmental worries about battery manufacturing.
The electric vehicle (EV) industry is thriving.
Globally, 14 percent of new cars sold in 2022 were electric, which is an increase from nine percent in 2021 and just five percent in 2020. Sales through the first quarter of 2023 were 25 percent higher than the same period last year.
The benefits of EVs are evident: they do not operate on environmentally taxing gasoline or ethanol, produce zero tailpipe emissions, run quietly, and require less maintenance compared to gas-powered vehicles. Some can even provide electricity for your home in an emergency.
However, the new wave of EVs also has its drawbacks. The batteries that power EVs necessitate intensive mining, and the electrical grids supplying power to cars are often dependent on fossil fuels.
Nevertheless, many, from the federal government to environmental organizations, assert that EVs represent the future.
Fred Lambert, the lead writer for Electrek, a news and commentary site covering electric transportation trends, states, “they’re so much more enjoyable to drive.”
Who is using EVs?
China leads global EV sales, accounting for 60 percent, with Europe and the US following as the second and third largest markets respectively. However, sales are also increasing in newer markets such as India, Thailand, and Indonesia.
EVs have had a more significant impact in some countries than others. For example, in Iceland, EVs make up 60 percent of new car sales, while in Norway, this figure exceeds 80 percent. In contrast, only 4.6 percent of new vehicle buyers in the US purchased EVs in 2022, although closer to 20 percent did so in California. Analysts have predicted that in a little over a decade, this figure could be closer to 45 percent.
How far can they travel?
Not everyone is convinced that EVs are suitable for them.
One commonly cited concern is “range anxiety” – the fear that an EV will run out of charge during a long journey. This anxiety is worsened by inadequate charging infrastructure – approximately 46,000 charging stations in the US, compared to about 150,000 gas stations – and some of these charging stations can be unreliable and prone to malfunctions.
However, Tesla has initiated the process of opening its superchargers, considered the most reliable, to other EV brands. The Biden Administration is also allocating $7.5 billion for a substantial expansion of a reliable American charging network.
The range of many EVs has also increased: the Lucid Air claims a range of 500 miles, while several other options are available with ranges well in excess of 300 miles.
Lambert successfully drove a Tesla Model 3 Performance on a road trip from Montreal to New Orleans.
“I had no problem, never experienced any range anxiety at all, and that was almost 2,500 miles,” he says.
Most people, he notes, do not need to travel that far; the average US commute is approximately 30 miles per day.
Additionally, Jim Motavalli, auto columnist for Barron’s, adds, “when people buy EVs, they’ll find that 85 percent of their charging is at home anyway. You’re not actually going to need or want to use public chargers most of the time.”
Do EVs have an environmental impact?
Some studies have indicated that manufacturing their batteries and constructing the cars themselves can generate more greenhouse gas emissions than a traditional gas-powered vehicle.
Battery production alone can contribute to as much as 60 percent of the total carbon emissions in an EV’s production. However, the majority of carbon emissions produced by traditional vehicles over their lifetimes are due to the fuel they consume; once they have been sold, a gas-powered car’s carbon footprint quickly surpasses that of an electric vehicle.
Electric vehicles also only achieve their full sustainable potential when the electricity powering them comes from renewable energy. In most areas, the electricity used to charge vehicles is generated at least partially by coal or gas.
Moreover, there are genuine concerns about the environmental and human impacts of mining components such as lithium for EV batteries.
Enhancements in mining techniques and battery production could alleviate these concerns, as well as the development and increased use of new batteries that have longer lifespans and hold more charge. Additionally, Lambert argues that the EV battery recycling industry has the potential to grow in the coming years, and new cars could be manufactured with recycled metals.
Concerns have been raised about the excessive number of vehicles on the road.
An additional critique is that the push to replace traditional cars with electric vehicles (EVs) does not acknowledge the issue of too many cars, roads, highways, and suburban sprawl. Even the most enthusiastic supporters of electric vehicles tend to agree with this argument.
Motavalli points out that unfortunately, electric vehicles do not solve the problem of traffic congestion.
Writer Noah Smith suggests that transitioning to electric vehicles and reducing sprawl can happen concurrently. He argues that besides making suburbs denser through changes in housing policy and the development of commuter rail, we should leverage the electric vehicle revolution to introduce electrified buses, e-bikes , and other alternative transportation modes to make suburbs more accessible.
Smith also notes that even with more transportation options, there will still be a significant number of cars on the roads. He highlights that car ownership remains high even in densely populated nations with extensive mass transit systems such as Japan and the Netherlands. Switching from gasoline -powered vehicles to electric transport not only makes sense, but it is inevitable.
According to Lambert, encouraging people to test drive an electric vehicle and analyze the cost-effectiveness and logic will inevitably lead them to choose electric vehicles.
Lithium batteries are crucial for powering various devices. They rely on the lithium found in the Salar de Uyuni, a salt flat in the Lithium Triangle in Southwestern Bolivia.
The Salar de Uyuni holds the largest reserves of lithium globally, which are used in lithium-ion batteries powering electronic devices and electric vehicles.
Lithium-ion batteries, rechargeable and utilized in a wide range of devices such as electric vehicles, smartphones, laptops, and electric toothbrushes, offer several advantages that make them the leading choice in the market over other alternatives.
A report in Nature projected that the market for lithium-ion batteries would grow from $30 billion in 2017 to $100 billion in 2025.
Lithium-ion batteries are essential for electric vehicles like Teslas. They are known for being low maintenance and for their high energy density and voltage, which enables the storage of renewable energy sources such as solar and wind power.
Transportation systems analyst Linda Gaines at the Argonne National Laboratory explains that the main drive for using lithium-ion batteries is to power electric vehicles and reduce reliance on fossil fuels. She also points out that producing these vehicles and especially the batteries requires a substantial amount of energy and resources.
Despite concerns about the environmental cost, Gaines argues that given the emissions from the transportation sector, the use of these batteries is justified.
However, there are concerns about the environmental impact of lithium-ion batteries. Despite facilitating renewable energy and reducing carbon emissions, the process of obtaining lithium through mining has negative consequences for the environment.
The question remains: how can we justify the environmental destruction and contamination caused by mining in exchange for the minerals that support the green economy?
Due to its small atomic weight and radius, lithium enables batteries to have a high voltage and charge storage per unit mass and volume.
The Department of Energy explains that while discharging and providing electric current, the anode releases lithium ions to the cathode, generating a flow of electrons. When plugging in the device, the opposite happens: lithium ions are released by the cathode and received by the anode .
One method of lithium extraction is brine extraction, which involves drilling into an underground brine deposit and pumping the saltwater to the surface. The brine is then sent to evaporation ponds where the water content evaporates, leaving a lithium concentrate that is extracted.
However, reports from the Lithium Triangle about the adverse environmental impact of mining are serious.
Euronew.com states that the process of extracting lithium through evaporation ponds requires a large amount of water—approximately 21 million liters per day.
In extremely dry regions of South America where mining takes place, the limited water supply is redirected from local communities to mining operations, leading to significant pollution from sulfuric acid and sodium hydroxide, as well as water scarcity issues.
As per the Natural Resources Defense Council, community members argue that the depletion of water levels in wells, lagoons, groundwater, and wetlands has had adverse effects on their agricultural and pastoral practices, and they have witnessed an increased mortality rate of flamingos and camelids due to dust pollution resulting from mining activities.
Are lithium batteries secure?
Lithium batteries are generally considered safe for individuals and households, functioning properly as long as there are no defects. While such failures are rare, lithium-ion batteries have been known to catch fire. Zheng Chen, a nanotechnology professor at the University of California San Diego, cites an incident where a cell phone caught fire during a flight. There have also been instances of Tesla vehicles catching fire. Additionally, lithium batteries at an energy storage station in Monterey, California, have experienced combustion.
During a battery fire, heat, pressure, and toxic gases are released through evaporation. When combined with wind, these gases can spread into nearby communities where people reside.
“This can be a concern if there is not a good plan in place to mitigate these systems.
There have been a few instances where electric vehicles have caught fire in garages. While these occurrences are uncommon, they have happened,” Chen states.
Chen remains unconvinced that all risks can be eliminated. “Mechanical damage can occur even when unexpected.”
To reduce this risk, The Occupational Safety and Health Administration advises consumers to “remove lithium-powered devices and batteries from the charger once they are fully charged and store lithium batteries and devices in dry, cool locations.” Additionally, consumers should “examine the batteries for any signs of damage, and if found, remove them from any area containing flammable materials.”
Due to the pandemic, the automotive industry is currently undergoing one of its most difficult periods, experiencing significant slowdowns over the past few years. However, recent trends indicate that the automotive sector is starting to recover. Despite potential challenges, the industry is poised to encounter exciting developments with the increased adoption of electric vehicles (EVs), the integration of Internet of Things (IoT) features in cars, hydrogen-powered vehicles, and more. This requires a comprehensive examination of the latest trends in the automotive sector, which is why this blog outlines key car market trends for 2024 that you need to be aware of.
What are the trends in the automotive industry?
Automotive industry trends represent shifts in the patterns within the automotive field that impact vehicle design, production, marketing, and usage. These trends are driven by technological advancements, shifts in consumer behavior, regulatory changes, and global economic factors. The automotive sector is highly dynamic, with trends evolving over time. Keeping track of and understanding these trends is essential for automakers, suppliers, and other participants to remain competitive.
Key areas of focus for automotive industry trends include electric vehicles, self-driving technology, connectivity, sustainability, transportation solutions, manufacturing innovations, and sales and distribution strategies. Tracking these trends aids greater penetration into emerging markets, such as the increasing adoption of electric vehicles in China and India.
Increased governmental emphasis on charging infrastructure will be essential to support the growing fleet of EVs. The autonomous vehicle segment is set to develop further as UN regulations raise their speed limits. Let’s take a look at car industry trends predicted to influence 2024.
1. Boost in the production of digital vehicles
Auto manufacturers and tech leaders like Google and Tesla are embedding more digital technology into their vehicles. This competitive environment has led to the development of automotive software and digital systems for innovative electric vehicles, meaning that cars manufactured in 2024 and beyond will be equipped with extensive technology addressing various digital touchpoints.
2. Growth in online vehicle sales
Automakers in North America and Europe are providing consumers with the ability to purchase vehicles online without needing to visit dealerships. Using a computer or smartphone, customers can select their preferred features, arrange financing, and even partake in virtual tours and test drives. In 2024, an increasing number of dealerships are expected to offer online sales, vehicle inspections, and home delivery services.
3. Growing interest in pre-owned vehicles
There is significant demand for cars that are less than four years old, which include the latest technologies while being more affordable than new vehicles. This trend encompasses pre-owned electric and hybrid cars, and dealerships now provide certified pre-owned vehicles that appear and function like new but at a reduced price. Low APR financing options make pre-owned vehicles a compelling option.
4. Increase in connected vehicles
Connected cars utilize wireless technology to interface with the Internet of Things. They deliver a safe, comfortable, and convenient multimedia experience with on-demand capabilities, enabling users to browse online while driving. These vehicles offer an array of features, such as remote diagnostics, vehicle health reporting, 4G LTE Wi-Fi hotspots, turn-by-turn navigation, and alerts for vehicle health concerns. This technology has already processed over a billion customer requests and is expected to grow in 2024 through predictive intelligence and maintenance capabilities.
5. Surge in autonomous self-driving technology
Self-driving cars are increasingly prevalent and are expected to continue growing in 2024. Studies have shown that autonomous vehicles are safer, decrease downtime, broaden the last-mile delivery capabilities, and improve fuel efficiency by 10%. Additionally, multiple trucking firms have experimented with self-driving technology, making it anticipated that fleets of autonomous trucks will soon coexist with traditional vehicles on the roads.
6. Introduction of fuel cell electric vehicles
Fuel cell electric vehicles are set to make their mark globally in 2024 due to their quicker recharging, extended driving range, and zero emissions. Leading manufacturers of cars, trucks, and SUVs are investing in the development of fuel cell electric vehicles, supported by nations including China, Germany, Japan, South Korea, and the United States. This year could see a breakthrough for fuel cell electric vehicles.
7. Increasing collaborations between automakers and tech firms
Auto manufacturers and tech companies are forming partnerships in response to evolving technological demands in vehicles. This need is particularly critical for electric, connected, and autonomous cars, which require sophisticated software and advanced technology for safe operation. Manufacturers are teaming up with tech firms to create and manufacture new operating systems essential for the next generation of technologically advanced vehicles. More collaborations are anticipated in 2024.
8. Growth in the market parts of the automotive industry
As the market continues to expand, the demand and supply of automotive parts are increasing significantly. The presence of modernized vehicles in the marketplace has presented opportunities for companies that supply and manufacture these components. Vehicles that are upgraded with advanced technology contribute to substantial growth for the markets that provide automotive parts. These markets are experiencing rapid long-term growth.
9. Shortage of chips will complicate the automotive industry
Auto manufacturers who depend on outdated versions of chips that lack advanced capabilities will hinder the progress of the automotive sector. Industries may have to reduce production due to limitations on features and technology; however, luxury carmakers, with their larger budgets and intricate electronic systems, face different challenges. Automakers need to either redesign their vehicles or explore alternative chip options that are available.
10. Consumers shifting to micro-mobility:
In an era where electric vehicles (EVs) are becoming prevalent, many individuals are opting for smaller, more affordable, and eco-friendly vehicles. These vehicles are more convenient for use in congested city environments, and their parking is also simpler. Younger generations, particularly Gen Z and millennials, are increasingly drawn to these vehicles due to their appealing design.
Forecasting Top 3 Automotive Industry Trends, 2030
By the year 2030, the automotive industry is anticipated to undergo significant changes, notably a shift toward electric and autonomous vehicles, promoting sustainable growth in the car market. The infrastructure supporting electric vehicles is expected to become more widespread and sophisticated, accommodating the rising number of electric vehicles on the roads. The realm of autonomous driving technology is likely to dominate the automotive landscape, enhancing safety and efficiency in transportation.
We can further simplify the trends below:
1. Rise of EVs
In the future, there will be a considerable demand for electric vehicles, as Gen Z and millennials are attracted to their futuristic designs. The automobile industry is expected to transition toward electric vehicle designs driven by government incentives, decreasing battery costs, and a growing consumer preference for environmentally friendly options. By 2030, a majority of vehicles on the road are expected to be electric.
2. Shared mobility
With traffic congestion in urban areas, people are likely to shift towards carpooling, leading to decreased ownership of newly purchased vehicles by 2030. Car owners will increasingly utilize ridesharing apps for scheduled routes within specific areas.
3. Sustainable manufacturing
The automotive industry will be utilizing recycled materials in the production of vehicles, resulting in a much cleaner and more organized manufacturing process by 2030. The focus will be on sustainable manufacturing practices, ensuring the availability of resources for future generations, with automakers prioritizing the production of eco-friendly vehicles.
Top Automotive Marketing Trends in 2025
Now, let’s examine the key trends in the automotive industry that are influencing its marketing landscape:
1. Evolving video marketing & environmental sustainability
Consumer behavior in the automotive sector indicates that short videos are more effective than text in converting leads into customers. Dealerships have the opportunity to create various video content, such as instructional videos, vehicle highlights, and customer testimonials. Virtual dealership tours are also becoming increasingly popular.
Dealers can utilize videos or virtual reality to enhance customer engagement. More consumers are emphasizing the importance of environmental sustainability, so focus on eco-friendly manufacturing processes and green vehicles like electric cars.
2. Rise in VR tech adoption
As VR technology advances, the metaverse is gaining traction, and car dealerships are no exception. Recent trends show that customers prefer to explore a car or dealership virtually before making a purchase. Virtual reality allows customers to examine a vehicle in detail without needing to visit a dealership, and leading car brands and dealerships are incorporating VR into their marketing strategies to enhance customer experiences.
3. Optimizing mobile experiences & personalization
Smartphones have become essential tools in the car buying process. Consumers often research their desired vehicles on their mobile devices, looking for the best deals and dealerships nearby. Thus, websites must be mobile-friendly, easy to navigate, and feature clear calls to action. Personalization is also vital in the mobile experience, with brands tailoring specific offers based on customers’ needs, preferences, and behaviors.
4. Enhancing integrated messaging applications and voice search
Chatbots and messaging technologies are significant trends in the automotive sector. These tools allow dealerships to manage inquiries effectively, allowing staff to focus on other responsibilities. Additionally, they aid in scheduling maintenance and repair appointments, improving dealership efficiency. Voice search assistants are also designed to enhance their interface for ads and voice search inquiries.
5. Growth in digital advertising expenditure
In 2022, the automotive industry’s investment in digital marketing reached $17 billion and is expected to continue increasing in 2024. Analysts foresee a rise in digital advertising spending, driven by increasing rates of mobile and social media usage. Dealerships require a strategic approach to capture potential buyers at various stages in the vehicle purchase journey, utilizing social media marketing, click-to-call conversions, and messaging applications to engage online consumers.
6. Transition to online vehicle purchases
Following the pandemic, we have become accustomed to handling all needs through online means, including the automotive sector. The new generation, known as millennials or Gen Z, conducts extensive online research before making a purchase. This year, 2024, is poised to witness a significant surge in online automobile sales.
7. Rapid expansion of electric vehicles
The Electric Vehicle Market in 2024 is expected to witness an increase in models, incentives, discounts, advertising, and overall sales efforts. Consumers are gravitating towards EVs due to their design and environmental benefits. A significant 50% of buyers are inclined to choose electric vehicles, prompting businesses to prioritize marketing these vehicles to expand their brand reach.
8. Transition to an “Agency model”
Consumers will be moving towards a modernized purchasing model in which they interact directly with OEMs (original equipment manufacturers), with dealerships serving as agents. Traditionally, buyers would visit a dealer to purchase vehicles, with dealers handling transactions with OEMs. Under the new Agency model, customers will engage directly with OEMs, and dealers’ profits will be shared with them, fostering greater trust in the brand among potential customers.
9. Conversion driven by social media
Content on social media platforms is going viral at an unprecedented rate, helping people discover new and emerging brands through platforms like Twitter, Instagram, and Facebook. Engaging in social media marketing presents a significant opportunity to build brand awareness and boost sales. Before buying a vehicle, consumers often research features and comparisons on platforms like YouTube; additionally, millennials and Gen Z tend to reach out to brands via social media rather than following traditional methods.
10. Adoption of an omnichannel content strategy
The old-fashioned ways that buyers used to contact dealers or look for product information on search engines are evolving. Consumers now explore all available platforms, including social media, websites, and videos. Providing consistent information across all platforms lends credibility and confidence in your brand, aiding the decision-making process. You can develop strategies that focus on understanding buyers’ desires and needs rather than sending out generic automated messages.
11. Enhancement of search guides
Previously, buyers prioritized searching for inexpensive vehicles; however, their preferences have evolved over time. Today, consumers are willing to invest more while seeking the best available vehicles in the market. Businesses will start optimizing their search guides to align with these evolving consumer preferences.
12. Growth in API conversions
Marketers traditionally depended on data from third-party cookies, but they are currently encountering challenges in campaign setup. However, API conversions offer a more practical approach than cookie data for analyzing data and comprehending consumer behavior.
Automotive Industry Automotive Industry Automotive Industry Electric vehicle Electric vehicle Electric vehicle EV car EV car EV car
There has been a slowdown in the adoption of electric vehicles. Ford is exploring solutions to overcome the major challenge of charging. Evaluate the potential challenges and benefits of widespread implementation of Ford’s electric vehicle charging stations.
The car manufacturer has submitted two patents aimed at making at-home EV charging more cost-effective and convenient. Initially, Ford is pursuing a patent for a system that regulates “vehicle and home energy storage systems.” This technology manages the charging of an EV to balance energy costs and demand. Ford Electric Vehicle Charging Station is a challenging topic for EV owner
Ford’s system forecasts when prices are expected to reach a certain level and charges a vehicle to a specific point before that. During peak price periods, these vehicles can then release that energy back to the connected building. This two-way system automates the process of cost-effective charging, while also providing power to the home during expensive peak hours of energy usage.
In addition, the company intends to patent a system for a “modular, upgradable EV charging ecosystem.” This patent application outlines a design for an EV charging system meant to be easily customizable and expandable by utilizing swappable electrical current transformers and upgradeable outlets.
Ford’s technology aims to simplify at-home charging, as well as assist commercial customers in expanding more rapidly and achieving a quicker return on investment, as noted by the company. The company stated that “Current charging stations are generally fixed and potentially not compatible with future technology of Ford Electric Vehicle Charging Station.”
These patents complement several others filed by the automaker aimed at making EV charging more intelligent. The company has previously sought patents for a charging scheduler based on demand, a system to prioritize charging vehicles when renewable energy is available, and a method that allows vehicles to support homes during power outages.
Ford has long been ambitious about its EV goals, planning to sell EVs at a rate of 600,000 vehicles annually by this year, with a long-term target of 2 million globally. However, as demand has started to decline, the company may have adjusted its expectations. In April, the company postponed the production of its all-electric SUV and pickup truck. It also offered discounts and price reductions on its EV trucks to attract more customers.
Ford is not the only company experiencing a slowdown in EV uptake. Volvo reduced funding to EV startup Polestar, and rental car company Hertz sold and halted purchases of thousands of EVs earlier this year. Toyota, Mazda, and Subaru recently unveiled a new hybrid engine that can run on both hydrogen and gasoline.
One major reason for this may be consumer concerns about charging. According to a November survey of 7,500 consumers from S&P Global, while vehicle price was the primary concern, 44% of respondents expressed worries about charging availability. In addition, only 51% of surveyed EV owners had a charger installed in their home.
Technologies like those developed by Ford, aiming to make charging more seamless and accessible, could be a strategy to alleviate consumer concerns and establish methods to install more charging infrastructure in case of a resurgence in demand.
Ford has been a frontrunner in the EV market, offering a variety of innovative and environmentally friendly vehicles that cater to the diverse needs of contemporary drivers. From the all-electric Mustang Mach-E to the Ford F-150 Lightning, the company’s EV lineup An appealing combination of performance, range, and sustainability. As more Ford EV owners take to the road, the need for efficient and hassle-free charging solutions has become increasingly significant.
Efficient Charging Solutions
Recognizing the importance of providing EV owners with seamless and dependable charging experiences, Ford has developed a range of innovative technologies and charging solutions that streamline the charging process and ensure optimal performance.
Ford Plug & Charge Technology: Simplifying the Charging Process
One standout feature of Ford’s EV charging solutions is the Plug & Charge technology. This Ford Electric Vehicle Charging Station innovative system enables Ford EV owners to simply connect their vehicle to a compatible charging station and begin the charging process automatically without requiring additional steps or authentication. By eliminating manual authorization or payment, Plug & Charge offers a hassle-free and intuitive charging experience, making it easier to keep your Ford EV powered up and ready to go.
Charging Level Recommendations for Optimal Performance
When charging your Ford electric vehicle, it is important to understand the different charging levels and their benefits respective. Ford offers clear guidance on the recommended charging levels for optimal performance and efficiency:
Level 1 Charging:
This basic charging level uses a standard household outlet and is suitable for overnight charging or when access to higher-powered charging stations is limited. While Level 1 charging is convenient, it provides a slower charging speed than higher levels.
Level 2 Charging:
Ford recommends Level 2 charging as the primary charging solution for most EV owners. These charging stations, installed at home or in public locations, offer faster charging speeds and significantly reduce charging time.
DC Fast Charging: If you’re looking to charge your Ford EV rapidly, Ford’s DC fast charging solutions are your best bet. These high-powered charging stations can quickly recharge a significant portion of your battery’s capacity, making them perfect for long journeys or when time is limited.
By understanding the capabilities and advantages of each charging level, Ford electric vehicle owners can make informed choices about the charging solutions that best match their driving needs and lifestyle.
Battery Health and Charging: Best Practices for Preserving Longevity
Preserving the health and longevity of your Ford EV’s battery is an essential consideration during charging. Ford offers detailed guidance on the best practices for charging your vehicle, such as:
Avoiding Overcharging:
Ford suggests affecting setting your EV to stop charging once it reaches 80-90% capacity because prolonged full-charge states can negatively battery health over time.
Temperature Regulation:
Charging in extreme hot or cold temperatures can impact battery performance and lifespan. Ford recommends using climate-controlled charging stations or parking your EV in a garage or shaded area to maintain optimal battery temperature during the charging process.
Regular Maintenance:
Periodic battery checks and software updates from your Ford dealer can help ensure your EV’s battery functions efficiently and has a long lifespan.
By following these best practices, Ford electric vehicle owners can help preserve their vehicle’s battery’s long-term health and performance, ensuring a reliable and enjoyable driving experience for years to come.
Ford Connected Charging Station
To further simplify the charging experience, Ford offers the Ford Connected Charge Station, a Level 2 charging solution specifically designed for home use. This advanced charging station seamlessly integrates with Ford’s FordPass app, enabling you to monitor charging progress, schedule charging sessions, and even remotely control the charging process from your smartphone.
The Ford Connected Charge Station offers:
Faster Charging Speeds:
With a Level 2 charging output, the Ford Connected Charge Station can significantly reduce the time required to fully charge your EV, making it a convenient and efficient solution for home use.
Intelligent Scheduling: The station’s scheduling capabilities allow you to take advantage of off-peak electricity rates or time your charging sessions to coincide with renewable energy generation, helping to maximize the cost-effectiveness and environmental benefits of your EV.
Connectivity and Remote Access:
The FordPass app integration provides a user-friendly interface for monitoring and controlling your charging sessions, putting the power of your charging experience right at your fingertips.
By offering the Ford Connected Charge Station, the company empowers its EV owners to take control of their charging needs and optimize their energy usage, further enhancing the overall ownership experience.
Long-term Storage for Electric Vehicles: Tips for Maintaining Battery Health
For Ford electric vehicle owners who may need to store their vehicles for extended periods, such as during seasonal changes or periods of limited use, maintaining the battery’s health is crucial.
Ford provides the following tips for long-term EV storage:
Charge the Battery: Before storing your Ford EV, make sure the battery is charged to approximately 50-60% capacity. This balanced state of charge helps prevent overcharging and deep discharge, which can harm the battery’s longevity.
Maintain Optimal Temperature: Whenever possible, store your EV in a climate-controlled environment, such as a garage or indoor facility. Extreme hot and cold temperatures can negatively impact the battery’s performance and lifespan.
Periodic Charging: Even during storage, it’s recommended to periodically (every 2-3 months) check the battery level and provide a gentle charge to maintain its optimal state of health.
Avoid Prolonged Inactivity: If you’re not driving your Ford EV for an extended period, consider starting it and driving it for a short distance every few months to keep the battery active and the various systems functioning properly.
By following these long-term storage tips, Ford EV owners can help ensure their vehicle’s battery remains in peak condition, ready to power their next adventure when the time comes.
Exploring Other Charging Options for Ford EVs
While Ford’s Plug & Charge technology and the Ford Connected Charge Station offer convenient and streamlined charging solutions, the company also supports a wide range of other charging options to cater to the diverse needs of its EV owners. Get the information about Ford Electric Vehicle Charging Station.
Public Charging Stations: Ford electric vehicle owners can take advantage of the expanding network of public charging stations in various locations, including shopping malls, parking garages, and along major highways. Many of these stations are compatible with Ford’s Plug & Charge technology, further simplifying the charging process.
Third-Party Home Charging Solutions: Ford supports a variety of third-party Level 2 charging stations for installation in your garage or driveway for those who would like a customized home charging setup. These solutions often come with added features such as advanced scheduling, energy monitoring, and integration with smart home systems.
Mobile Charging: Ford EV owners can use mobile charging solutions like portable Level 2 chargers or DC fast charging units when access to fixed charging stations is limited, ensuring their vehicles remain powered even on the go.
By exploring these different charging options, Ford electric vehicle owners can find the solution that best suits their driving habits, lifestyle, and charging infrastructure, guaranteeing a smooth and convenient charging experience.
Selecting the Right Charging Solution for Your Needs:
There isn’t a universal solution for charging your Ford electric vehicle. The ideal charging setup will depend on various factors, including your driving patterns, home environment, and access to public charging infrastructure. To help you make an informed decision, consider the following factors:
Charging Frequency and Daily Mileage: Assess your typical driving habits and daily distance covered to determine the appropriate level and frequency of charging needed.
Home Charging Capabilities: Evaluate your home’s electrical capacity and charging setup to guide your choice of the right Level 2 charging solution, whether the Ford Connected Charge Station or a third-party option.
Access to Public Charging: Understand the availability and distribution of public charging stations in your area, as this can influence your reliance on home versus public charging.
Charging Speed and Convenience: Prioritize charging speed and overall convenience in your decision-making process, as these can significantly impact your daily driving experience.
By carefully considering these factors, Ford electric vehicle owners can select the charging solution or combination of solutions that align with their specific requirements, ensuring a smooth and efficient charging experience every time they hit the road. Ford Electric Vehicle Charging Station is now challenging topic
Purchasing an electric vehicle is an investment in the future, but it involves new practices if you’re transitioning from traditional combustion engines. Among the foremost concerns for electric car owners is maintaining a charged vehicle for their daily needs. While there are methods to extend an electric vehicle’s mileage on a single charge, having a secure and convenient home EV charging station is one of the major advantages. Here are more benefits:
1. Convenience of Home EV Chargers:
Public electric vehicle charging stations are not as widespread or convenient as gas stations at present. This means you may need to plan routes to find them, and when you do, they could be out of service or in use by another EV driver. With a home EVSE (electric vehicle supply equipment) in your garage, you can easily plug in as needed and be ready for the day in most cases.
2. More Control with Home Electric Vehicle Chargers:
Modern home car chargers come with advanced settings that allow you to schedule and maintain the battery according to your specific electric vehicle’s requirements. This grants you greater control over the charging process, helping extend battery life and mileage range.
3. Cost Savings Over Time with an EVSE:
Owning an EV entails several costs, including the car’s price, maintenance costs, and the expense of installing a home EV charger. Additionally, charging at a public station often costs more than charging at home. However, charging your electric car overnight (during off -peak hours) can save you money, and you won’t have to contend with fluctuating and often high gas prices. Despite the upfront cost, EVSE installation can save you money and hassle in the long run.
4. Prolonged Battery Life with a Home Electric Car Charger:
Similar to any battery, an electric vehicle’s battery will degrade over time. Nevertheless, there are ways to maximize its longevity. Public charging stations typically offer “fast charge” options, which, while convenient, can contribute to faster battery degradation. Using a home charging station that you can program to optimally charge at the manufacturer-recommended speed will help extend your battery life.
5. The installation of an EVSE
The installation of an EVSEat your home can increase the value of your home, as potential buyers will be more likely to choose it and pay a higher price if they know they won’t have to install one themselves.
6. Contributing to lower emissions is one of the advantages of having a home EV charger.
By replacing gas-powered vehicles with electric ones, you can reduce the earth’s CO2 load by approximately 1.5 million grams per vehicle, equivalent to almost 4 airline flights between Washington DC and Orlando, Florida.
Maintaining your home EV charger is crucial as electric vehicles (EVs) become more widespread. Regular maintenance ensures optimal performance, efficiency, and reliability. Here are some essential tips for homeowners:
Regularly inspect your EV charger for wear, damage, or loose connections. Look for frayed wires, corrosion, or debris buildup that may affect its performance, and ensure the charging port is clean and unobstructed.
To prevent dirt and debris accumulation, clean the exterior of your EV charger regularly using a soft cloth or sponge with mild soap and water. Avoid using harsh chemicals or abrasive cleaners to preserve the charger’s finish.
If your EV charger is installed outdoors, protect it from the elements with a weatherproof enclosure or cover to shield it from rain, snow, sunlight, and extreme temperatures. Ensure proper ventilation to prevent overheating and moisture buildup.
Monitor the temperature of your EV charger during charging sessions to prevent overheating, which can reduce charging efficiency and pose safety hazards. Stop charging and consult a professional if you signs notice of overheating.
Inspect the charging cable regularly for damage such as cuts, kinks, or exposed wires. Promptly repair or replace damaged cables to ensure safe and reliable charging.
Follow the manufacturer’s maintenance procedures outlined in the user manual for your EV charger, including cleaning instructions, maintenance schedules, and troubleshooting tips.
Keep your EV charger’s firmware up to date by installing available software updates provided by the manufacturer. Check for updates regularly on the manufacturer’s website or enable automatic updates.
Regularly test the ground fault circuit interrupter (GFCI) protection if your EV charger is equipped with it, following the manufacturer’s instructions for testing and resetting the GFCI device.
Monitor your EV charger’s energy consumption to identify irregularities or inefficiencies, enabling you to optimize charging schedules, reduce electricity costs, and detect potential issues.
Consider scheduling periodic maintenance inspections with a qualified electrician or EV charger service provider to diagnose and address any underlying issues and ensure peak operating condition.
Following these maintenance tips will help maintain optimal performance and extend the lifespan of your EV charger, providing reliable charging for your electric vehicle. Remember, proper maintenance is essential for maximizing efficiency, safety, and convenience in your EV charging experience.
When it comes to the rising popularity of electric vehicles (EVs), many homeowners are choosing to install EV chargers at their homes. Whether you’ve recently purchased an electric car or are preparing for the future, one of the most important decisions you’ ll need to make is finding the best location for your home EV charger. In this guide, we’ll explore key factors to help you determine the perfect spot for installing your EV charger.
Closeness and Accessibility
Proximity and accessibility are crucial factors to consider when deciding on the location for your EV charger. Ideally, you’ll want the charger to be conveniently situated near your parking area. Doing so not only reduces the required length of the charging cable but also minimizes the risk of tripping hazards. Take into account the distance between your parking space and the charger’s location, as well as the ease of access.
Protection from Weather
It’s vital to shield your EV charger from the elements to ensure its longevity and performance. Select a location that provides protection from rain, snow, extreme heat, or direct sunlight. If outdoor installation is unavoidable, consider investing in a weatherproof charger or installing a protective enclosure to shield the charger from adverse weather conditions.
Visibility and Safety
Choose a location that is well-lit and visible from your home or the street. Enhanced visibility not only discourages theft or vandalism but also promotes safety during nighttime charging sessions. Additionally, consider adding security cameras or motion-sensor lights to provide extra protection and peace of mind.
Access to Electricity
Make sure that the chosen location has access to a suitable electrical outlet or circuit breaker panel. By installing the charger near the main electrical panel, you can simplify wiring requirements and minimize installation costs. Consult with a licensed electrician to evaluate the electrical accessibility of the location and ensure compliance with safety codes and regulations.
Future Expansion
When selecting the location for your EV charger, think about your future needs. If you plan to add more electric vehicles to your household or expect increased demand for charging, choose a location that allows for easy expansion of your charging infrastructure. Consider installing multiple charging stations or choosing a location with a sample space for future upgrades.
Appearance and Regulations
Consider any aesthetic considerations or homeowner association (HOA) regulations that may impact the placement or appearance of the EV charger. Select a location that integrates seamlessly with your home’s exterior while adhering to local regulations. Adhering to aesthetic guidelines ensures that the EV charger enhances rather than detracts from the visual appeal of your property.
Consultation with a Professional
Before finalizing the location for your EV charger, it’s advisable to seek advice from a qualified electrician or EV charger installation expert. They can assess your home’s electrical system, recommend the best location based on your specific requirements, and ensure compliance with safety codes and regulations Entrusting the installation to a professional electrician provides assurance that your EV charger setup is safe and efficient.
In conclusion, the process of selecting the ideal location for your home EV charger installation involves careful consideration of factors such as closeness, protection from the elements, visibility, electrical accessibility, future expansion, appearance, and regulations. By making well-informed decisions and Seeking professional assistance when needed, you can ensure a seamless and trouble-free EV charging experience at home.
The unexpected announcement on Thursday evening that Ford will provide access to over 12,000 stations in the Tesla Supercharger network for current and future owners of its electric vehicles surprised many in the automotive industry. Tesla has a reputation for going its own way, and the volatile and increasingly political behavior of its CEO has received significant media attention.
Despite all that, the CEOs of both companies jointly revealed that starting in spring 2024, current Ford electric vehicle owners will be able to use Superchargers through a CCS-to-Tesla connector, and from 2025 onwards, future Ford EVs will integrate the Tesla connector. (Tesla refers to its plug and connector design as the North American Charging Standard or NACS, although many engineers have objected to that description, as Tesla has not followed the traditional process for developing a technical standard.)
In my personal opinion, this deal represents a shrewd move by Ford for several reasons. Firstly, it will give Ford a significant marketing edge over other non-Tesla electric vehicle manufacturers. Secondly, it will publicly pressure existing fast-charging networks such as Electrify America and EVgo to substantially improve their reliability. Lastly, it is still uncertain whether Ford will entirely replace the existing CCS/J1772 connector in its future EVs with the Tesla connector, or simply add the Tesla connector alongside it.
In return, Tesla will generate considerable revenue from the deal, which may offset the substantial costs it has incurred over 11 years in establishing the Supercharger network. This income will support its plans to significantly expand its network of Superchargers by December 2024 and potentially upgrade its remaining V2 Superchargers, which are not covered by the Ford deal. Perhaps Tesla can also use Ford’s participation as evidence that its connector should be considered a “standard.”
Over time, Ford has recognized the challenges of public fast-charging. The first Mustang Mach-E in late 2020 included the Plug and Charge protocol, streamlining the validation and billing process. In October 2021, Ford established a fleet of “Charge Angels” to test various public charging stations using Ford EVs, revealing frequent issues with charging infrastructure.
Ford has also taken a tough stance with charging networks, threatening to remove sites or entire network segments from its BlueOval Charge Network of charging sites unless issues were promptly resolved. With this single move, Ford has doubled the number of fast-charging locations available to Ford EV drivers and granted them access to the most reliable EV fast-charging network in North America.
Until you experience driving an EV, you may not realize the significance of widespread, reliable, closely integrated public fast-charging to make road trips practical. Tesla understood this early on, as the Model S was the only EV in 2012 with a range of over 200 miles, motivating the company to build a reliable network tightly integrated with charging, navigation, and billing. In that regard, it’s akin to Apple, controlling the entire ecosystem.
Now, Ford will be the only automaker other than Tesla itself able to assure buyers that they can charge their EV at any U.S. charging site. Current Ford EV owners will receive a Tesla-designed adapter, which I presume the two companies have agreed to produce in adequate quantities. The next generation of Ford EVs will come with the Tesla port built in, allowing them to simply plug in at a Supercharger.
This represents a significant advantage over Tesla’s current practice of enabling a limited number of Supercharger cables to charge CCS-equipped cars via its Magic Dock automatic connector. This connector is activated when non-Tesla CCS drivers use the Tesla app to reserve a Magic Dock-equipped pedestal at one of the few Supercharger sites with this feature.
There has been extensive discussion about the unreliability of non-Tesla public charging sites. Reliability and convenience comparable to gas stations should be a minimal expectation, but it simply does not exist. The frustration of car manufacturers with this situation is extremely high, according to one source and the other five individuals interviewed for this piece, all of whom insisted on anonymity to protect industry confidentiality. The Ford/Tesla deal is seen as a significant challenge for Electrify America and other networks.
Today, no existing fast-charging network is profitable. They are currently in a land-grab phase, striving to install as many stations as quickly as possible to secure desirable locations—and, in the case of Electrify America, to comply with a 10-year consent order with the EPA resulting from VW Group’s involvement in the Dieselgate scandal.
This entails that any lost revenue from a customer who drove an EV to a charger only to find it out of order is insignificant. And there are very few incentives to maintain stations in working condition. Therefore, Ford’s agreement with Tesla immediately places significant pressure on Electrify America, EVgo, ChargePoint, and smaller public charging networks. Essentially, Ford can communicate, “If you don’t upgrade your network to Tesla standards, we can always direct our customers to Tesla—which we know functions properly. And you know that as well, don’t you?”
Might Ford Discontinue CCS?
While Ford CEO Jim Farley hailed the agreement as a “breakthrough agreement” that would be “beneficial for customers,” the wording in the official announcement spoke about “access” to Tesla charging. It specifically did not state that Ford will abandon the current CCS connector in its upcoming vehicles. Neither was this explicitly mentioned in a Twitter exchange between the two companies’ CEOs. When queried on this matter, multiple Ford representatives replied with similar responses of “More details to come, stay tuned.”
It’s far from certain that Ford will eliminate the combined J1772 and CCS connector. And since the Tesla connector is compact, integrating it will take up less space than the reverse. Some European and Asian cars are currently equipped with rectangular fuel filler doors to enable the same body stampings to be utilized for diesel models sold outside North America, which have a second filler for Diesel Emission Fluid. This same form factor could easily accommodate a Tesla port next to the CCS port.
Eliminating J1772, the Level 2 charging connector currently used by every EV sold in the U.S. except Tesla—which even provides a J1772 adapter to its customers—would necessitate owners of future Ford EVs to use an adapter at each of the 50,000-plus Level 2 public charging cables in use today that employ that connector. This is hardly user-friendly.
Abandoning the CCS connector would require using a separate, much larger adapter to charge at any of the tens of thousands of charging stations using it, including those to be funded by $5 billion of National Electric Vehicle Initiative funds being distributed by the federal government across all 50 states. Would Ford truly walk away from all those new fast-charging stations—forcing owners to use a cumbersome adapter instead of simply plugging in as they do now?
Lastly, Ford was surprised by the public interest in the notion that an F-150 Lightning could power a house for up to three days (albeit with some caveats). This is known as vehicle-to-home, or V2H. It’s the final step before vehicle-to-grid, or V2G, in which the vehicle can support electric grid stability through two-way charging. The software governing the Tesla connector is staunchly one-way, and it does not currently allow for using a Tesla as home backup power. This is also not very user-friendly.
I believe that, at least initially, Ford will incorporate the Tesla connector alongside CCS/J1772 in its new generation of EVs. This would enable them to say, “Not only can you charge your EV at any charging site in the U.S., but . . . you can do it without carrying a single adapter.” This is something not even Tesla can assert. While there are many reasons why Ford may decide against incorporating two different DC fast-charging connectors in their future EVs, I believe—and sources indicate—there are several reasons that suggest that is exactly what will happen.
Who Will Control EV Charging in 2030?
Even though modern EVs have been available for purchase for 12 years now, we are still in the early stages of figuring out how to cover the vast expanse of the U.S. with an adequate number of DC fast-charging stations to facilitate the EV transition that will occur over the next 30 years. However, early gasoline vehicle drivers also experienced their own version of range anxiety.
It is uncertain whether the existing networks will still be operational in 2030. Smaller networks will likely be consolidated into larger ones, but other entities are just as likely to offer EV charging over the long term: electric utilities (which purchase or generate the power regardless), convenience store operators, fossil fuel companies, perhaps even car manufacturers themselves.
However, with one stroke, Ford’s actions have alerted all existing charge networks that what they have provided is far from satisfactory. It covers all the charging bases. Most importantly, it will alleviate the anxiety of driving an EV over long distances. At least, if it’s a Ford or Lincoln EV.
It might be the nightmare of every electric vehicle driver: on a road trip—taking the kids to visit Grandma, for example—you connect your EV to a DC fast-charging station along the way. You hear a loud bang, maybe see some sparks. Then your car refuses to work.
EVs offer the convenience of being able to be charged at home, usually overnight. For longer trips, there is a growing number of fast-charging stations across North America, which can recharge most EVs to 80 percent capacity in 20 to 45 minutes. The Tesla Supercharger network, previously exclusive to Tesla vehicles, is highly regarded for its widespread availability and reliability. However, there are alternative charging networks as well.
Non-Tesla EV drivers may encounter inconsistent availability and reliability of public charging stations during their journeys. Concerns about a charging station causing damage to their EV can be particularly distressing.
In the rare instance of a charging station incident, the driver and their vehicle may be impacted, potentially leading to worries about both their trip and the condition of their car. Whether any resulting damages are covered by the new-car warranty is a common concern, though the coverage depends on specific circumstances and the vehicle manufacturer.
Three real-life incidents, though infrequent, illustrate the potential risks. Since November, three separate EVs—the Ford F-150 Lightning on November 27, the Chevrolet Bolt EV on January 22, and the Rivian R1T on January 29—experienced loud noises during charging at Electrify America stations, which subsequently caused charging to halt and the vehicles to be inoperable.
Car and Driver contacted Electrify America and the respective car manufacturers to gather details about each occurrence. While Electrify America provided statements, they did not grant access to network engineers for further insight.
Responses from the car manufacturers ranged from non-disclosure to more substantive explanations. Through information obtained from the EV owners, official statements, and anonymous sources, a comprehensive understanding of the events was established.
It is crucial for EV owners to understand that every electric vehicle contains a high-voltage circuit breaker connected to the battery wiring. This breaker functions similarly to those in homes, as it de-energizes the circuit to prevent damage in the event of excessive current flow.
Electrify America clarified that the loud noise heard before charging disruption was likely the result of the circuit breaker tripping, which could occur in the charging equipment, the vehicle, or both due to redundant safety systems.
This explanation aligns with the Ford F-150 Lightning incident on November 27, which was attributed to an isolated event during fast-charging. A joint statement from Electrify America and Ford later confirmed that safety features were activated in response to the incident, and the vehicle’s breaker was replaced, with Ford covering the related costs.
When asked about Ford’s warranty coverage for resetting the high-voltage circuit breaker, the company indicated that any breakers triggered by vehicle faults are covered. However, if the breaker is tripped by other factors and the vehicle remains in normal operation, the costs are not covered. In this specific case, Ford covered the expenses, considering it an isolated occurrence.
Unlike the Ford incident, details regarding the Rivian R1T case on January 29 are limited. Rivian chose not to comment, and no joint statement was issued by Electrify America and the automaker. Electrify America mentioned conducting a thorough investigation into the incident, concluding that it resulted from an internal electrical anomaly within the charging station or its power source.
The confirmation that the safety systems functioned as intended implies that the circuit breaker activated to safeguard the Rivian’s high-voltage battery pack. While it rendered the truck inoperable, it likely protected the battery pack, although the complete specifics are unavailable.
EVs offer the great benefit of being able to recharge at home overnight, and most EV owners take advantage of this. However, for longer journeys, there is a growing network of DC fast-charging stations across North America, which can recharge most EVs up to 80% in 20 to 45 minutes. The Tesla Supercharger network is well-regarded for its widespread availability and reliability, despite previously only serving Tesla’s own EVs. Other fast-charging options are also available.
Non-Tesla EV drivers may encounter variability in the locations and reliability of public charging stations during their travels. The fear of a charging station causing damage to their EV can be especially distressing.
In the unlikely event of a charging station causing damage, not only would the driver and their family be left stranded, but they would also worry about their car being completely damaged. They may also wonder if the damages would be covered by the new-car warranty, which ultimately depends on the circumstances and the car manufacturer.
Although extremely rare, real-life incidents have occurred involving EVs being damaged during charging. Since November, there have been three separate cases of EVs experiencing issues after being charged at Electrify America stations. These incidents involved a Ford F-150 Lightning on November 27, a Chevrolet Bolt EV on January 22, and a Rivian R1T on January 29. Each case garnered significant attention on social media, and the outcomes varied.
Car and Driver contacted Electrify America and the three car manufacturers for details regarding each incident. Electrify America provided statements on each case but declined to arrange discussions with network engineers for further details.
Responses from the car manufacturers ranged from no comment to more detailed explanations. The details of each case were compiled from the accounts of the EV owners, the statements received, and unofficial conversations with anonymous sources due to the sensitive nature of the topic.
It is important for EV owners to know that every electric vehicle is equipped with a high-voltage circuit breaker connected to the battery wiring. This breaker functions similarly to the circuit breakers found in homes: it trips if there is an excessive flow of current through the circuit, interrupting the circuit and protecting downstream components from potential damage.
Electrify America clarified that the loud sound heard before the loss of charging power was likely the result of the breaker tripping. This could occur in the charging equipment, the vehicle, or both, as there are redundant fail-safe systems.
In the case of the F-150 Lightning incident on November 27, it was determined to be an isolated event during DC fast-charging. A joint statement issued by Electrify America and Ford several weeks later explained that the incident activated the charging system failsafes and triggered safety features in the vehicle.
The most crucial information in the statement was that Ford replaced the onboard circuit breaker and returned the vehicle to the customer, with no cost incurred by the owner. The owner, Eric Roe, later mentioned that one battery module had to be replaced, which was covered by Ford’s warranty.
Regarding whether Ford’s EV warranty typically covers the resetting of the high-voltage circuit breaker, the company clarified that it depends on the cause. If a vehicle fault triggers the breaker, it is covered under warranty. However, if something else triggers it and the vehicle functions as expected, it is not covered. In the specific incident with the F-150 Lightning, Ford covered the cost considering it as an isolated event.
In contrast, there is less information available about the Rivian incident on January 29, as Rivian declined to comment. Unlike the Ford case, no joint statement was released by Electrify America and the automaker. Electrify America separately stated that they conducted a thorough investigation and determined the isolated incident was due to an internal electrical anomaly, suggesting a malfunction in the charging station or the power equipment supplying it.
“The safety systems functioned as intended,” according to EA. This indicates that a circuit breaker designed to protect Rivian’s high-voltage battery pack was triggered, causing the truck to become inoperative but likely preserving the pack. However, detailed information is not available.
Following the incident, Rivian took the truck back for repairs. Three weeks later, the owner, Anson, mentioned on Twitter that the automaker had returned his fully repaired truck. He also noted that the company replaced a bumper damaged during off-roading. Anson appears to remain a satisfied Rivian owner, though not necessarily a happy Electrify America user.
Regarding the warranty, while Rivian declined to provide a comment, its New Vehicle Limited Warranty Guide (a 23-page PDF download) offers some insight. In general, similar to other manufacturers, repairs are covered if a Rivian component or part is found to be defective under normal use. However, if an external issue, such as a malfunctioning charger, leads to damage not stemming from factory-supplied materials or workmanship, it does not appear to be covered. The responsibility for repair costs in such cases would lie with the external party responsible for the damage.
Determining whether charging at a public charging network constitutes “normal use” might be a matter for legal deliberation. In this particular instance, Rivian covered the truck’s repair costs.
A Chevrolet Bolt EV Mystery
The details about the Chevrolet Bolt EV case are the least known. Following a charging incident on January 22 at an Electrify America site in Chipley, Florida, the vehicle failed to start. It was then towed to Miller & Miller Chevrolet Buick GMC of Marianna, Florida, where the service department concluded that the battery pack needed replacement—a decision ultimately under the dealership’s jurisdiction, not the automaker’s.
Progressive Insurance determined the car to be a total loss. Bolt owners Cass and Sara Tippit have filed an insurance claim for the vehicle’s value but are still responsible for their incidental expenses, including renting a car for the time they have been without a vehicle.
Chevrolet informed Car and Driver that the carmaker’s engineers have not been able to inspect the vehicle, which is currently in the possession of the insurance company. The carmaker still aims to do so at a later time, according to the spokesperson.
Regarding coverage for repairs, GM seems to have the most comprehensive warranty among the three. A GM spokesperson confirmed that resetting an EV’s high-voltage circuit breaker would be covered under its warranty without any conditions.
Electrify America only stated, “The incident with the Bolt is still being investigated.”
Efforts to Reassure Customers
Electrify America refrained from providing detailed information on what occurred at its charging stations in these cases but issued several statements to assure current and future EV drivers about its network to Car and Driver. “We regret the inconvenience experienced by customers in each of these cases, as the well-being and charging experience of our customers are our utmost priorities.
“In 2022, we recorded over six million charging sessions, and each case is unique. Overall, we observe very few vehicle immobilizations per million sessions. However, addressing these issues contributes to enhancing interoperability testing, component reliability standards, and continual over-the -air updates to the network.
“As with any technology, these improvements are part of development and innovation, particularly in the early stages of growth for technologies like DC fast charging.”
How can you maintain battery health?
The battery pack is the priciest component in any electric vehicle, so ensuring the battery remains healthy is the best method to maximize the value of your investment—plus, it helps keep you on the road longer between charging sessions.
If you’ve seen battery deterioration in a smartphone or laptop, you may be concerned that the lithium-ion battery in your vehicle might similarly lose capacity as time goes on, forcing you to rely more on a charger. While all lithium-ion batteries will experience some capacity loss over time, the encouraging news is that battery technology is continually advancing, and the robust lithium-ion batteries used in electric vehicles are designed to maintain much of their charge capacity as they age (typically losing around 2.3% annually).
Recent studies indicate that if you adhere to these recommendations (along with any others suggested by your EV manufacturer), you can enhance your EV battery’s health and safeguard it for the long run.
Maintain a moderate state of charge by adhering to the 20-80% guideline.
Frequently charging your battery beyond 80% capacity can eventually diminish your battery’s range. A battery generates electricity via chemical processes, and when it approaches a full charge, the stored potential energy may initiate secondary, unintended chemical reactions. While these reactions aren’t harmful, they can gradually decrease your battery’s efficiency and capacity over time.
Similarly, ensuring you charge your battery before it drops too much below 20% is not only for peace of mind; it also benefits battery health. Lithium-ion batteries operate less effectively at low charge levels, and they tend to perform better over time when charged partially during each cycle. Thus, charging from a 20% to an 80% level is gentler on your battery compared to charging from 0 to 100%.
The 20-80% guideline is particularly crucial if you don’t use your EV frequently or plan to store it for an extended duration. In such circumstances, Qmerit recommends charging the battery to 80% at least once every three months to guard against potential damage caused by a fully depleted battery.
Utilize Level 3 fast charging when possible, but plan cautiously on extremely hot or cold days.
Battery experts typically advocate for Level 1 or 2 charging over Level 3 fast charging because fast charging’s elevated current levels produce extra heat, which can be detrimental to batteries.
However, practical tests have shown that fast charging doesn’t significantly influence battery capacity. The Idaho National Laboratory found that the capacity loss difference between 2012 Nissan Leafs charged at Level 3 compared to Level 2 was “minor relative to overall capacity loss.”
As noted by Liz Najman, the Director of Market Insights at Recurrent, “there’s a distinction between what has been seen in laboratory settings and what will actually occur in EV batteries, which contain numerous cells, along with thermal and voltage protection and management systems.”
In the case of newer EV models equipped with advanced battery management systems, frequent fast charging might not lead to any notable battery degradation. Recurrent discovered “no statistically significant difference in range degradation” between Teslas that predominantly utilized DC fast chargers and those that rarely did.
Level 1 or 2 charging does have its benefits as it is usually cheaper and more convenient for drivers who can plug in at home overnight. Nevertheless, feel free to use fast chargers when necessary. Just remember to follow the manufacturer’s guidance for preconditioning the battery.
Prepare the battery pack for fast charging in extreme temperatures.
Driving and charging in extreme temperatures can diminish range and add extra wear to batteries, and the higher currents used in DC fast charging can worsen the stress on the battery during such conditions. This is why EV battery management systems limit the charging rate to protect batteries when temperatures are excessively hot or cold. This aspect favors battery health but can be inconvenient for drivers in a hurry and those paying by the minute.
Is it still possible to benefit from Level 3 charging on very hot or extremely cold days? Yes, but it requires some upfront planning and depends on your specific make and model. Most newer EVs will automatically adjust the battery to the optimal charging temperature once you enter a DC fast charger as a destination in the navigation system. Just ensure to do this at least 20-30 minutes before you intend to plug in to provide the battery enough time to condition.
If you operate an EV without a preconditioning feature, you can still take measures to prepare your battery. Najman suggests “driving the vehicle a little before fast charging in cold conditions, and allowing the battery to cool down prior to fast charging in hot weather.”
Driving an electric vehicle may seem straightforward, but charging an EV can be quite complex.
Potential electric car buyers should carefully consider the availability of charging infrastructure at or near their home to accommodate their new vehicle’s recharging requirements. Unlike traditional gas-powered vehicles, which have numerous gas stations in many areas, electric vehicles have fewer charging options, and they are often farther apart. While fully committing to an EV may require more planning and consideration, it should not deter you from exploring this option. Guide to Charging an Electric Car
One of the most important steps to take before buying an EV is to have a charging station installed at your residence. This is easier if you own your home, but there are various obstacles to overcome, such as permits, contractors, and fees. Some car manufacturers and local governments provide incentives to streamline this process. If you are a renter, it is worth inquiring with your landlord about the possibility of installing an electric car charger.
EV charging is typically categorized into three levels: Level 1, Level 2, and Level 3 (also known as DC fast charging). The choice of charging level usually depends on the distance you plan to drive and the amount of time available for recharging.
Charging at home allows for convenient overnight recharging at the end of each day. The same applies during the day if you have access to charging facilities at work. Longer trips require a different strategy, as you wouldn’t want to spend hours waiting for a full recharge.
Level 1 chargers generally come standard with new EVs. They are designed to be plugged into a standard 120V household outlet, providing the most convenient but slowest charging option for electric cars. Level 1 chargers typically add about two to four miles of range per hour, making it a viable option if you drive short distances each day and can recharge every night. However, it can take days to fully recharge a depleted battery pack using a Level 1 charger. It is important to consult with an electrician to ensure that the outlet used is suitable and to avoid using extension cords.
To achieve faster charging speeds, consider upgrading to Level 2 home charging, which operates at 240 volts and can deliver triple or even quadruple the amperage of Level 1 chargers. Most Level 2 setups are six to eight times faster than Level 1, adding between 12 and 32 miles of range per hour of charging, making it possible to recharge most EVs in just a couple of hours. It is relatively easy to install a Level 2 charger at home, but professional consultation with an electrician is necessary.
Level 2 is quite achievable, especially for homeowners. Some electric vehicle (EV) charging cables come with interchangeable ends featuring 240V plugs. If the cable that comes with the EV you’re considering does not have this feature, you can buy a separate Level 2 home charging unit.
Regardless, you will need a 220–240V outlet connected to a dedicated circuit breaker. It is essential to consult with an electrician to install such a circuit and ensure that your panel can support it. There are several plug options, but the most common and best one is called a NEMA 14-50. This is the same outlet RV parks provide for Class A motorhomes, so if your garage is already wired to support such an RV, you might be in a plug-and-play situation.
Level 2 charging is not only available at home but is also the primary type found in public spaces, workplaces, and certain shopping malls. Additionally, the cord-end that you plug into the car looks the same as home Level 1 and Level 2 equipment . If you plug in while you’re out for dinner and a movie, you can add a significant amount of range, but these chargers are not intended for a full charge from near-empty as they are generally not located where people spend many hours in one place.
Fast Charging:
Level 3 chargers are also known as DC fast chargers, and as the name suggests, this equipment can rapidly charge your electric car’s battery. Fast charging is especially useful for long trips that require intermediate charges to reach a destination because most compatible EVs can add 100 –250 miles or more of range in significantly less than an hour. Level 3 chargers differ from Level 2 chargers in that they use a different socket on the vehicle side, with extra pins designed to handle higher voltage.
There are three types of Level 3 chargers. Tesla Superchargers have long used their proprietary socket known as the North American Charging Standard (NACS). This made the extensive Supercharger network a Tesla-only recharging option for a long time. This has recently changed, and a number of other automakers currently do, or plan to, offer access to these chargers.
Until this major change in recharging hardware, the majority of EVs outside of Tesla used the SAE Combo (also known as CCS or Combo) chargers. These are based on the same socket used by the Level 2 plug but with an extra pair of large pins added below. CCS-enabled cars typically have a secondary flap that the user folds down to expose the socket for these extra pins.
Finally, there’s CHAdeMO, which is mainly found on a few Mitsubishis and the Nissan Leaf, though Nissan’s future products will use the CCS interface going forward.
The charging rate is measured in kilowatts (kW), which currently ranges from a minimum of 50 kW to a maximum of 350 kW, depending on the specific charger. The fast charge capability of the car itself matters. A car with a maximum DC fast charge rate of 50 kW will not benefit from plugging into a 350 kW station and will instead occupy a spot that a car with faster charging capability could use.
EV owners will notice a decrease in the charge rate once their car’s battery reaches about 80 percent capacity. In practical terms, an 80 or 90 percent charge is sufficient to get you to the next stop. This is also done to prevent damaging the battery pack by overcharging or overheating it. It’s similar to pouring water into a glass; you can pour a lot in at first, but you generally slow the flow as the glass gets full and dribble it in near the end to avoid overflow.
Fast Charging Networks:
Tesla’s Supercharger network consists of Level 3 chargers strategically placed around the country. The extensive Supercharger network and the reliability of its chargers make Tesla’s electric car charging infrastructure one of the best currently available.
For everyone else (including Tesla drivers), there are several public charging networks available, such as ChargePoint, Electrify America, EVGo, and others. These networks are generally newer and less extensive, so we recommend joining as many as possible to increase the likelihood of finding an available and functioning station while traveling. It’s also a good idea to download each network’s app on your phone, have an active account, and carry a physical charge card with you.
Several car manufacturers are starting to integrate plug and charge, a method for accessing multiple networks for charging your electric vehicle. For example, the Mercedes EQS battery-electric sedan can bring together multiple networks under a single user account. It also features a plug- and-charge function when using participating chargers. This allows you to simply connect your EQS without needing to interact with the charger’s app or physical charge card.
Charging on the move is further simplified by the in-dash navigation systems of many electric cars, which typically suggest charging locations to stop at along your route if your EV requires a charge to reach the final destination. It’s advisable to select multiple alternate charging stations in case your range depletes quicker than expected or if a chosen charging station’s charger is already in use or out of order.
The Cost of Charging an Electric Car
Although the cost of electricity varies by location, charging an electric car at home should generally be considerably cheaper than filling your gas-powered car’s tank with an equivalent amount of gas. In some areas, your electricity provider might encourage charging by reducing rates during off -peak hours. Typically, these lower rates are applicable late in the evening and early morning. Many electric cars enable you to schedule your daily at-home charging times to ensure your EV charges during these off-peak hours. Expect to spend significantly more on charging if you regularly rely on charging networks to recharge your electric car.
Those charging at home might consider investing in solar panels that feed into an energy storage system, such as Tesla’s Powerwall. These systems capture energy from the sun during the day and store it for later use, such as charging an electric car. In some areas , any excess power collected can be sold back to the local utility company. Be aware that energy storage systems can currently be very expensive.
EV Charging Etiquette
If you have recently switched to an electric car, you should be aware of some basic etiquette guidelines that come with EV ownership. For example, when using a charger in a public parking area, it’s best to monitor your electric car’s state of charge. Once its battery reaches full capacity, it’s common courtesy to move your car—even if it means returning to the charging station well before you’re ready to leave the area—so other drivers can charge their EVs. In fact, some charging networks may penalize you for keeping your car plugged into the charger after its battery reaches full capacity.
Additionally, it’s wise to ensure your electric car is properly plugged in and actively charging before walking away. Faults may occur within a minute or two of plugging in. Once your EV has finished charging, return the charger handle to the receptacle and neatly coil the cable. These components endure wear and tear in everyday use, so keeping them in good working order will benefit you and other EV drivers. These cables also pose a tripping hazard, so keeping them off the ground is always a good idea. If you come across a faulty charger, your best course of action is to notify the network of the issue so it can be fixed.
Charging an electric car may seem complicated, but aside from the additional time it takes to reach your car’s full energy capacity, it’s generally no more difficult than fueling up a gas- or diesel-powered vehicle. Furthermore, those with an at-home charger will find that charging their electric car is just as simple as charging any mobile device. Simply plug it in overnight, and wake up with it ready to go.
Each electric vehicle will charge at different speeds depending on its onboard charger, while the charging time will depend on the battery size and charging speed.
For instance, an electric car with a larger 64kWh battery will typically take longer to charge from zero to full compared to a 32kWh battery simply because it is bigger.
Fortunately, every EV available for purchase or lease in the UK is featured in our vehicle directory.
Look through the directory by brand and check individual models and information about their charging durations. For example, a Nissan Leaf e+ – Mk2 takes approximately 9 hours and 24 minutes to charge from zero to full using a typical 7kW home charging point.
A single-phase home charger – 7.4kW
This is the standard power output for smart home chargers and will usually take around six to eight hours to add approximately 80% capacity back into your electric car’s battery.
Consult our directory for the specific make and model of the electric vehicle you’re interested in to obtain more precise charging times.
One of the options for home charging is a three-phase charger that can deliver up to 22kW of power. Compared to a standard 7.4kW charger, a 22kW electric vehicle (EV) charger can charge up to three times faster.
Typically, a 7kW home charging station can provide around 30 miles of range per hour, whereas a 22kW charger can offer up to 90 miles of range per hour.
To install a 22kW charger, the residential power supply needs to be upgraded from single phase to three phase, which could require costly modifications by the homeowner’s Distribution Network Operator (DNO).
It’s important for customers to consider their actual charging needs and whether a standard 7kW home charge point would suffice.
Using a three-pin domestic plug is a last resort option for charging at a rate of 3kW. However, this method is not recommended due to its slow charging speed, taking over 24 hours to reach 80% compared to six or seven hours with a 7kW home charger.
Charging with a domestic plug may require trailing cables to the EV through open windows, posing potential hazards. Additionally, this method lacks smart connectivity features and the ability to utilize electric car specific home energy tariffs. Domestic sockets also lack the same safety and security measures that comes with a smart home charger.
The cost of charging an electric car at home can be as low as 7p/kWh with an EV-specific off-peak tariff like Intelligent Octopus Go. However, actual costs will vary depending on the size of the electric car battery and the specific home energy tariff being used.
For instance, charging a Tesla Model Y Performance Dual Motor could cost around £5.86 for six hours of off-peak energy through Octopus, compared to higher costs at rapid charger networks or off-peak destination EV chargers. Charging at standard pricing times on the road will likely result in even higher costs.
Charging at home presents significant cost savings compared to utilizing public charging points, as demonstrated by our “cost to charge” tool, which provides a detailed analysis of the cost differences between home energy prices and public charging points.
All electric car charging points we offer are equipped with smart technology. These smart chargers can connect to your home internet through WiFi or 4G to provide additional features and functionalities.
One main benefit of smart chargers is the ability to remotely control your car’s charging schedule and take advantage of off-peak energy rates.
Smart chargers also provide data on previous charging sessions, such as energy usage and estimated costs, which can help in making informed decisions when choosing an electricity tariff.
Some smart chargers also include additional features such as a remote locking feature, which can be useful in preventing unauthorized use of the charger.
For electric car drivers, it’s advisable to charge little and often, rather than letting the battery run low and then doing a big overnight charge. This approach helps to avoid situations where the car may not be charged as intended or if there is an issue with the charging session.
Additionally, some smart energy tariffs may require the car to be plugged in, enabling the charger and energy provider to schedule charging sessions efficiently. Getting into the habit of plugging in daily to replenish the miles used is recommended.
Remember to prepare your electric car before starting your journey. Electric vehicles can be set to warm up the battery in colder weather before you set off. This pre-conditioning can also warm up the vehicle’s cabin, eliminating the need to stand outside with the engine running. It’s best to do this while your electric car is plugged in, which also aligns with the advice of making a habit of plugging in and charging frequently.
Only charge your electric car to 100% when embarking on long journeys. Electric car batteries have built-in management systems to protect the battery from extreme states of charge, such as running down to 0% or charging to 100%. To extend the life of your battery, it is recommended to keep your EV charged between 20% and 80%. While charging to 100% won’t significantly damage your electric vehicle’s battery life, consistent full charging will have an impact.
Ensure that your cable trails along the ground when charging, rather than dangling. A dangling cable poses a tripping hazard, so it’s preferable to allow enough slack between the home charge point and the place where you park your electric car to plug it in. Smart Home Charge offers various cable types, with standard cables being around 5 meters. Additionally, a 10-meter cable is available for added flexibility. Consider where your electric car is parked for charging, potential future changes, or if you need more flexibility to relocate where you park while still ensuring the cable reaches where you need it.
It is important to know how to charge your electric car at home. While the public charging infrastructure is often discussed, the reality is that the majority of electric car charging occurs at home, which is the most convenient and cost-effective option. There are different ways to recharge at home, each with their own advantages and disadvantages. Here’s how to charge your electric car at home.
There are several methods to charge your electric car at home, but it is essential to familiarize yourself with your cables first. While wireless charging is supported by many devices, this technology has not extended to electric cars. Therefore, if you want to recharge your battery, you will need to use a charging cable. Dedicated EV chargers come with their own tethered cables, making the process straightforward, whether recharging at home or in public.
Your car also includes a mobile charging cable, allowing you to connect to a standard power outlet. One end of the cable has the plug for the car, while the other end has a typical wall plug. A transformer with charging status lights is located somewhere along the cable.
Every electric car is equipped with a mobile charger compatible with standard 120V outlets commonly found in homes. Some automakers, such as Tesla, offer cables or adapters supporting 240 volts and currents up to 50 amps, although these are less common.
The simplest way to begin charging your electric car at home is to plug it into a standard 120-volt power socket, similar to any other appliance. However, this process is very slow.
To charge your electric car at home, simply locate your mobile charger and plug it into both the car and a nearby power outlet. Despite its simplicity, this method has significant limitations, particularly in terms of speed.
The standard US power socket provides 120 volts with 15 amps of current, resulting in charging speeds of approximately 1.8 kW. For comparison, most home chargers offer at least 7 kW, while ultra-fast DC rapid chargers offer anywhere from 50 kW to 350 kW .
Needless to say, recharging at 120V is very slow, with the time best measured in days rather than hours. For example, Tesla claims that its mobile charger provides 2-3 miles of range per hour using a 120V socket, while a Supercharger can add over 160 miles in 15 minutes. There is a significant difference in charging speed.
In summary, the 120V charging option is not ideal, even if you do not drive your car frequently. Therefore, its use should be temporary at best, and limited to emergencies.
While not considered “fast” by any means, charging your electric car from a 240V socket is a much more practical option. Although most sockets in the United States provide 120 volts of electricity, 240-volt sockets are not uncommon.
Some large appliances, such as dryers and water heaters, require a 240V socket to operate. You might already have one in your garage, but if not, hiring an electrician to install it should be a simple solution. Before doing so, ensure you have a 240V-compatible mobile charger. Certain automakers, like Tesla, offer them directly, while others may be available only from third parties.
The charging speed from a 240V socket depends on the current it can handle. Most homes in the United States have electrical circuits with 15 or 20 amps of current, which would provide charging speeds of 3.6 kW and 4.8 kW, respectively. These speeds are notable slower than those of a dedicated electric car charger but still much faster than a standard 120V outlet.
Recharging at this rate will take several hours and may be possible overnight, depending on the car model and the amount of charging required. However, there are times when it might take longer.
Specialized sockets can accommodate 30 to 50 amps of power, increasing the possible charging speed to 7.2 kW and 12 kW, which is comparable to speeds from various dedicated EV charging stations. This might be an easier option, as you can use a regular electric car charging cable instead of having to search for (and purchase) a compatible mobile charger.
The most convenient way to charge an electric car at home is to have a dedicated electric car charger. Not only can they recharge most electric cars in a few hours or overnight, but you also don’t need any special cables.
Car chargers in the United States come with their own built-in cables, so there’s no need to purchase anything else.
Home EV chargers typically range from 7 kW charging speeds up to 22 kW. Your choice of charger will depend entirely on your car and your budget. While a faster charger may offer quicker recharge speeds, it will also be more expensive. Therefore, if your car’s maximum recharge potential is 7 kW, it’s not necessary to pay extra for a 22 kW-capable charger.
Even if your car can handle higher speeds, a 7 kW charger can recharge the majority of electric cars overnight, so it’s worth considering recharge times before deciding if the extra cost is justified.
The cost of chargers varies and can amount to several hundred dollars, plus any additional installation costs. Typically, the faster and more feature-packed the charger, the higher the price.
For instance, Tesla’s 11.5 kW home charger costs $400 but is essentially a sophisticated plug socket that can be safely installed outdoors. ChargePoint’s 12kW HomeFlex, on the other hand, costs $749 and comes with additional features such as the option to set charging schedules, Alexa voice control, usage statistics, and more.
As for how long it will take each method to recharge your car, it’s not a simple answer and depends on various factors such as car model, battery size, available power, etc. However, lower voltage and current result in longer charging times.
For instance, consider the 40 kWh Nissan Leaf, one of the cheapest electric cars in the United States with a small battery. According to a calculator from EVAdept, charging from zero to 80% from a standard power outlet (120 volt and 15 amp, or 1.8 kW) will take 18 hours and 43 minutes. Upgrading to a NEMA 6-20 outlet (240 volt and 20 amp, or 4.8 KW) reduces this time to 7 hours.
Using the same calculator, a Long Range Tesla Model 3 takes 35 hours and 5 minutes to recharge from 20% to 80% using a standard wall outlet. A NEMA 6-20 socket accomplishes this in 13 hours and nine minutes, while a 30 amp NEMA 14-30 socket (7.2 kW) can do it in 8 hours and 46 minutes. A dedicated Tesla wall charger, which recharges at the car’s 11 kW maximum, will do it even faster.
In summary, it’s advisable to use something better than a standard power outlet for charging, but the choice is yours.
The cost of charging your electric car at home depends on the rate your power company charges. Using a public charger will result in a higher cost, as it includes both the power and a markup for the charging network.
For example, if you pay 30 cents per kWh of electricity, recharging a 40 kWh battery, such as the one in a Nissan Leaf, will cost you $12. Larger batteries will cost more to recharge, but they should also provide more range.
It’s important to note that some energy companies might provide reduced energy rates during specific times of the day—usually during off-peak hours in the late night. This allows you to schedule your charging sessions, either from the charger or the car itself, to save additional money. Additionally, individuals with solar panels can take advantage of essentially free energy by charging their electric vehicles while the sun is shining.
For more tips on electric vehicles, be sure to check out our guides on locating EV charging stations and renting an electric car. Need help with infotainment? Read up on setting up wireless Android Auto and wireless Apple CarPlay.
Given its convenience and cost-effectiveness, it’s no surprise that 80% of all electric car charging in the UK takes place at home. But how convenient is it to charge your electric car from your own home, how long does it take, and what preparations are required? Find out more about the lifespan of your battery here.
When it comes to charging an electric car at home, you have two options: using a standard 3-pin plug socket or installing an EV home charger.
In the UK, a standard plug provides a maximum current that is about half of what home charging units and public electric charging stations offer, resulting in longer charging times. Additionally, it’s important to consider the potential hazards of charging from sockets—using standard extension cords to reach outside your home to charge your vehicle is unsafe. If you opt to charge through a 3-pin UK socket, you will need an EVSE supply cable. Using standard plugs for frequent charging can lead to overheating. Hence, it’s always recommended to seek advice from an electrician before charging your electric car at home.
Due to the reduced power output from standard sockets, most electric vehicle owners prefer to install a faster home car charging point, also known as an EV home charger. These home charge points typically provide around 7kW of power, which is double that of a standard 3-pin plug and equivalent to some public charging points. However, higher power home charging units are available, providing 22kW of power for even faster charging. For more information on charging times for electric cars, refer to our article.
You can charge your electric car at your home charge points as often as needed, although most owners tend to charge their car akin to their phone, fully overnight and topping up during the day if necessary. While it may not be necessary to charge your vehicle at home daily, many drivers plug their car into their EV home charger each time they leave it for an extended period, offering greater flexibility.
By charging your electric car at home, you can benefit from lower electricity rates during the night, resulting in costs as low as 2p per mile compared to the best diesel cost of 6.37p per mile. Overnight charging also ensures your vehicle is fully charged and ready to go in the morning, without having to worry about finding a public charging point during your commute.
Installation of an electric car home charging station entails mounting the charging unit on an external wall or in a garage, close to where you usually park your vehicle, and connecting it safely to the mains supply. This typically takes about three hours to complete, depending on the chosen location of the charge point and the complexity of the installation.
For this reason, home car charging points must be installed by qualified professionals. This can be arranged through various companies online, over the phone, or even through car dealerships upon purchasing an electric vehicle.
Electric vehicle owners are eligible for a Government grant called the EV chargepoint grant (formerly the Electric Vehicle Homecharge Scheme (EVHS) grant), which provides up to 75% (with a grant cap of £350 including VAT per installation) towards the cost of installing an EV home charger. To qualify for the EV chargepoint grant, you must:
Own, lease, or have ordered an eligible vehicle and have dedicated off-street parking at your property
Live in rental accommodation or own a flat
More information on the criteria for accessing the EV chargepoint grant can be found on the Government website – www.gov.uk/guidance/electric-vehicle-chargepoint-and-infrastucture-grant-guidance-for-installers#ev-chargepoint-grant
Charging an electric vehicle at home can be more complex if you lack off-street parking. You will not qualify for the OZEV grant, and it may not be practical to charge your vehicle using sockets from within your home.
An option would be to charge your electric car at your workplace or at public charging stations if possible. Companies can also request funding for charging stations through the Workplace Charging Scheme, which provides similar discounts to the OZEV grant.
Electric mobility is certainly here to stay in Australia and globally. 2022 is expected to bring a significant influx of electric vehicles (EVs) due to the rise in global oil prices. Those considering switching to an EV may have questions about charging methods: what’s the best way to charge their car’s battery each day? For many consumers who haven’t owned or driven an electric car, EVs can be a mystery, particularly when it comes to charging.
Although it takes longer to charge an EV than to fill a gas tank, in most cases, you don’t need to leave your home to charge the battery. There are 2 different home EV charging levels available to recharge your car’s battery. Level 1 charging is the slowest but also the most accessible, allowing you to fully charge your car in about 26 hours depending on your battery’s capacity.
This charging option is usually included with your EV purchase. Simply plug the cable that comes with your EV into a regular wall outlet to use it. However, charging issues related to safety may arise if the old power outlet is shared with other appliances such as kettles, as this can trip the circuit breaker and leave your car uncharged overnight. Moreover, overheating can also damage the residential socket.
So, can you use an extension cord to charge your electric car? Charging an EV using a residential outlet is risky, and using an extension cord would only heighten the risk. Most residential extension cords are not designed to handle the high power demands of an EV.
Level 2 chargers are the most popular type of chargers and are 3 to 10 times faster than level 1 chargers. They are commonly found at commercial or residential charging locations.
What’s the best way to charge your EV at home?
A Wallbox would be the ideal solution for charging your EV at home, as it is specifically designed to help you make the most of your EV. It is also sturdier, safer, and faster than any other non-certified charging method. Technology has been developed to incorporate safety features into a dedicated home charger, significantly reducing the risk of fires and electric shock. Therefore, if any electrical faults occur during charging, the charger will immediately stop the power transfer and automatically release the charging cable. This means it will protect your EV, your home, and your grid connection from unnecessary stress.
Apart from offering a safe charging experience, it’s also quick to charge your electric car using a home charging station than a regular power outlet. For instance, you can achieve 40km of range per hour using a 7kW home charger to fully charge your MG ZS in 7 hours.
Another benefit of having a certified home charging station is that they are designed to withstand extreme weather conditions such as heat or rain. You can be assured that your car and home are protected from potential electrical shocks or surges. EV Wallboxes are designed for both indoor and outdoor use, meeting certified Australian regulations and standards to ensure a safe and reliable charge.
Many businesses today are taking measures to reduce their environmental impact. Whether it involves using biodegradable plastic bags in the office or transitioning to LED lights, every action, regardless of size, can contribute to a green and sustainable future.
If you’re a business owner looking to enhance your sustainability and reduce emissions in your workplace, consider installing electric vehicle charging stations.
EV charging stations have the potential to make a significant impact in the business world.
These stations not only provide a cost-effective way to promote environmental awareness and position your company as a leader in sustainability, but they also help your workplace accommodate the diverse needs of its staff and customers.
EVSE offers cost-effective and convenient charging stations for workplaces, allowing businesses to enhance their eco-friendly infrastructure and contribute to environmental preservation.
How EV charging stations can benefit your business:
Charging stations for electric vehicles provide numerous advantages for businesses. Here are some reasons why every workplace should incorporate an EV charging station.
Decrease your business’s emissions:
Electric vehicles are a simple and efficient way to make your workplace more eco-friendly. They produce no pollutants, are more economical to operate, and have a smaller environmental impact compared to gasoline vehicles.
By installing EV charging stations, businesses make it easier for employees to transition to electric vehicles and encourage those who already own them to bring them to work, which can help offset or even reduce the workplace’s emissions.
Demonstrate your commitment to sustainability to your customers:
As more consumers express interest in sustainable living and reducing their carbon footprint, they are increasingly likely to seek out and support brands that share this dedication.
By incorporating EV charging stations, you can demonstrate to your customers that you are taking significant steps to minimize your company’s environmental impact, making your business more appealing to environmentally-conscious consumers.
Many electric vehicle owners frequently struggle to find public charging facilities. Therefore, by providing EV charging stations in your publicly accessible parking lot, you are also likely to attract new customers to your business.
What this ultimately means is that, in addition to contributing to a cleaner future, installing EV charging stations in your workplace can ultimately enhance your business’s financial performance.
Save your employees time and money:
Incorporating EV charging stations at your business can also save your employees time and money, as they no longer need to search for a public charging station. This not only enhances your employees’ morale, but also helps you attract and retain more employees.
On a broader scale, if you currently own or are considering purchasing a fleet of electric vehicles for your business operations and services, an EV charging station can also save company time and money for the same reasons.
Whether you aim to support eco-friendly practices or simply want to offer a convenient benefit for your employees or customers, EV charging stations are an excellent investment for any workplace.
To be a content electric vehicle owner, it is essential to charge at home. For pure electric vehicles or plug-in hybrid electric vehicles, 240 volts are necessary to charge a larger battery pack within a reasonable time frame. However, it’s also recommended to use 240 volts for plug-in hybrid electric vehicles.
Charging at 240 volts, commonly known as Level 2 in the EV community, involves several potential points that influence how quickly your electric car gains range.
The electric car itself can be a significant bottleneck, regardless of the power supply. Each plug-in vehicle has a maximum charging rate for alternating current (AC), which includes both 120 volts and 240 volts (Level 1 and Level 2). If the car supports public DC fast charging, it operates at a much higher rate, but this doesn’t apply to at-home charging.
The vehicle’s charging rate is measured in watts, specifically in kilowatts. For instance, the Nissan Leaf’s starting charging rate in 2011 was 3.3 kW, while newer models have rates exceeding 10 kW. The car’s charging rate determines charging speed.
The vehicle’s onboard charger module is responsible for converting AC to DC and managing the charging rate. Not all onboard charger modules hit the maximum 19.2 kW for Level 2, mainly due to cost, size, and weight constraints.
It’s important to know the car’s maximum AC charging rate before setting up home charging, as it will help determine your needs. Most models have a single rate, but some manufacturers offer increased capacity as an option or with a larger battery pack.
Charging speed depends on the amount of power supplied and the vehicle’s efficiency. Just like gas-powered vehicles, the efficiency of the car plays a crucial role in determining the miles added per hour of charging.
While faster charging rates solve one issue, the efficiency factor remains important. Teslas, known for their efficiency, can charge faster than less efficient vehicles when given the same amount of power.
Charging at 6.6 kW is twice as fast as charging at 3.3 kW, resulting in a proportional boost in miles added. In-depth information about charging times for Level 1, Level 2, and DC fast charging is provided in our charge level explainer.
Though often referred to as a charger, the box on the wall with the long cable is technically an electric vehicle service equipment (EVSE) or supply equipment used for charging, not the charger itself.
This Level 2 unit is another potential bottleneck. The term “Level 2” seems consistent, but it only refers to voltage. The current supplied by a unit at 240 volts can range from 12 to 80 amperes (amps). This translates to a range of 2.8 to 19.2 kilowatts (kW). In terms of miles of range added per hour of charging, using an older Tesla Model S that accepted up to 19.2 kW as an example, the difference would be 7 miles of range per hour at the lower end and about 60 miles at the higher end, both from units referred to as Level 2. (Less powerful charging hardware is typically smaller and more affordable.)
You might have followed the explanation of kilowatts and charging capacities, but here’s a twist: Level 2 chargers are usually labeled in amperes, and there are various options: 12, 16, 20, 24, 32, 40, 48 or 64 amps. We wish we could avoid the math, but unfortunately, we have to because manufacturers haven’t realized that consumers don’t usually understand these details.
The calculation is simple: Multiply 240 volts by the amperes to get watts. For instance, if a Level 2 charger is rated at 32 amps, then 240 multiplied by 32 equals 7,680 watts, or 7.7 kW. This is suitable for a car with a maximum charging rate of 7.2 kW or lower. You don’t need to worry about providing too much power to an EV; the EVSE and onboard charger are designed to protect your car. Our emphasis on the maximum charging rate is solely about charging as fast as possible, not overcharging or damaging the car.
Why is the Level 2 rating convention so confusing? Well, there’s a reason for that. The hardware manufacturer can only guarantee that its unit can handle a specific current. The voltage is the responsibility of the electric utility, and it may not always be exactly 240 volts, depending on the electrical devices in use in your home coming and by your neighbors.
The voltage into your home might be above or below 240, which is just a nominal rating. So, you can understand why they would want to sell you a 32-amp EVSE rather than a 7.7-kW one: In practice, it could be 7.5 or 7.8 kW. Unfortunately, some manufacturers still struggle with some of the details below, but we’ll get to that in a moment.
Quiz time: Based on the above, what would be a suitable Level 2 unit for the Mustang Mach-E (maximum charge rate of 10.5 kW) or ID.4 (11 kW)? Common current ratings for Level 2 chargers are 32, 40 , and 48 amps. Multiplying 40 amps by 240 volts gives us 9.6 kW, which is below the maximum rates for both cars. That wouldn’t be ideal. However, 48 amps results in 11.52 kW, which leaves no power unused.
Regardless of the capabilities of your car and charger, if you don’t have a dedicated circuit that can provide sufficient power, it doesn’t matter. Just like with the charger, voltage is only one part of the equation. Each 240-volt circuit has a current limit determined by the gauge (diameter) of its wires and their distance from the electric service panel (also known as the fuse box) to where you intend to charge your car. We won’t delve too deeply into electric theory , but the basics clarify why this is essential: Inadequate wiring creates too much resistance to the flow of current, leading to the generation of heat and the risk of damage or fire.
An electric car is likely the most power-hungry device you’ll connect in your home. You already know the requirements in kilowatts from the previous information. For comparison, hair dryers and space heaters usually peak at 1.5 kW; among 240-volt appliances , a typical electric clothes dryer uses approximately 3 kW, an electric water heater uses 4.5 kW, and a large central air conditioner uses 3.8 kW. Only an electric tankless water heater comes close, with demands exceeding 30 kW for high-capacity units.
What this tells us is that you probably won’t have a 240-volt circuit in your house or garage with a rating high enough to fully utilize the charging capacity of today’s EVs unless you’ve been doing some serious welding. In other words, the wiring needs to be strong enough to meet the current demands of vehicle charging, and robust wiring might require larger conduit than your current setup allows. It all depends on the electrical code, which varies by state (even though there are national standards).
If the Level 2 charger has a 32-amp rating, then it will necessitate a 40-amp circuit breaker. A 40-amp unit requires a 50-amp breaker. The circuit breaker always allows for approximately 25% of headroom.
Regrettably, this can lead to further confusion when it comes to buying or installing a charger because you need to ascertain whether the given rating is for the unit’s operation or its circuit. It is quite easy to mistakenly assume that you are purchasing a charger rated at 40 amps, only to later discover that it is actually a 32-amp unit intended for use on a 40-amp circuit. The difference amounts to 1,920 watts of charging power. More details are provided in the post on charging levels.
We are treating the circuit and breaker as two distinct components of the same subject because each one plays a role in what you can install and in future-proofing an installation. Swapping one breaker or outlet for another is straightforward, but changing wire gauge may not be; every situation is unique.
Using wire that is too light with a circuit breaker that is rated too high can lead to disaster, but there is no issue with the opposite scenario: using overrated wire and a given breaker. So, if you are selecting a modest charger to match your car’s modest capabilities, there is no reason not to plan for the future by having the electrician install the heavier-gauge wire you might need someday. The difference in cost should be minimal, and you will only incur labor charges once. If you ever upgrade your charger to one with higher current capacity, all you need to do is replace the circuit breaker to match, a simple task.
Considering the increasing high current demands of mass-market EVs, at times, you may find that your house does not have enough extra power available. Now, whether you genuinely do not receive enough power or whether the local government is excessively involved with numerous regulations and requirements, ultimately causing you such frustration that you continue to drive your old polluting car, is another matter altogether.
However, the reality is that you may sometimes find, for instance, that you only have 50-amp or 100-amp service, meaning that this is the maximum current your home receives. As a result, you may either not have sufficient amps to dedicate to your EV charger, or even if you are not utilizing much of your current capacity, your municipality, condo association, or another governing authority may compel you to upgrade your service before you can proceed.
We cannot speak for all regions, but increasing your home’s service from 100 to 200 amps does not automatically lead to charges from the electric utility itself. (They may be eager to bill you for the extra electricity you might consume as a result.) Nevertheless , it does entail a considerable amount of labor and components to replace a 100-amp service panel with a 200-amp one; this will be your responsibility to cover, and this is before any expenses associated with installing a charging system.
Then there is the matter of building code. While existing homes are permitted to remain as they originally were, once you start making alterations, you may be obligated to bring related systems up to current codes, which can be costly. It all hinges on the extent of your planned modifications and your location.
After a lifetime of simply purchasing a car and refueling at gas stations, it can be frustrating to have to acquaint yourself with all of these details and collaborate with an electrician and potentially additional contractors before you can maximize the benefits of an EV. However, in the end, you may come to value the absence of visits to gas stations. Never.
Guide to Charging an Electric Car Guide to Charging an Electric Car Guide to Charging an Electric Car
The ultimate goal of the automotive industry is to have your car drive itself, but the process isn’t simple. Artificial Intelligence in Autonomous Vehicles today
Self-driving cars are a major advancement in automotive history. However, the arrival of driverless vehicles is taking longer than anticipated. Recent predictions suggest that a fully self-driving car won’t be developed by the automotive industry until 2035.
While everyone agrees that autonomous vehicles are the future, the timing of their arrival is a topic of much debate.
The road to full autonomy is more complicated than it seems, despite the enthusiasm from the automotive industry and its eager customers. Advancing self-driving systems requires not only technological progress but also acceptance by society and adherence to regulations. There are numerous factors to consider Safety, reliability, adapting infrastructure, and legal frameworks are all crucial aspects that careful demand consideration before self-driving cars can gain widespread acceptance.
Now, let’s consider the timeline. Cars currently in production will likely remain on the road for at least 20 years or more. Although these cars are partially automated, they are not fully autonomous. This means the transition to completely self-driving cars will be gradual, and human drivers will continue to share the roads with autonomous vehicles for quite some time. The mixed traffic presents a whole set of yet challenges to be discovered.
In spite of these hurdles, researchers are using artificial intelligence (AI) to speed up the development of driverless vehicles. They are working on new methods that utilize reinforcement learning with neural networks to improve the performance and safety of self-driving cars. are part of a broader trend in the automotive industry, where AI and machine learning technologies are increasingly driving innovation.
The environment seems to concur. Looking at the data from CES 2024, it’s clear that the automotive sector is emphasizing sustainability and AI-driven technologies. Advanced features such as lidar sensors, which use pulsed laser light to measure distances, are playing a crucial role in the advancement of autonomous vehicles.
It’s fair to say that technological progress is a key factor in advancing self-driving systems. Whether through lidar, advanced driver-assistance systems (ADAS), or intelligent speed assistance (ISA), no innovation in driverless car systems can go very far without location technology. Combining location data with AI can enable cars to better understand their surroundings, enabling them to make informed decisions that improve safety and efficiency on the road.
Despite the constant innovations that continue to enhance safety and efficiency, there is a discussion to be had about how autonomous vehicles will integrate into traffic and whether they should somehow be distinctive. Unlike traditional cars where the emphasis is on driving, autonomous vehicles prioritize the passenger experience. This shift in focus brings new design considerations.
For example, without the need for a driver, the interior space of the cockpit can be reimagined to enhance comfort, safety, and convenience. While some argue that self-driving cars should resemble traditional cars, others believe that their unique functionality and priorities require a more recognizable design. Only time will tell.
As advancements in self-driving systems and the integration of AI and other in-vehicle technologies continue, a future where driverless cars are a common sight on the streets is slowly shifting from a concept to a reality. While self-driving cars may not be a frequent sight on today’s roads, they are certainly on the horizon.
When it comes to the future of travel, self-driving technology is changing the conversation. However, do you truly understand the different levels of autonomous vehicles beyond the excitement?
The term automated driving has become synonymous with self-driving cars, but in reality, it covers a wide range of technologies and capabilities.
The Society of Automotive Engineers (SAE) has defined six SAE Levels of Driving AutomationTM, ranging from Level 0 (no automation) to Level 5 (full automation). Each level represents a different degree of control over the vehicle, from basic driver assistance features to fully autonomous operation.
Despite all the buzz around autopilots and artificial intelligence (AI), most cars worldwide still require a human to handle all navigation tasks. Although recent advancements might imply that we are at Level 2, market analysis shows that less than 10% of cars currently use automation technologies higher than Level 1, which paints a very different picture from the anticipated takeover by self-driving cars.
Prioritize Safety
As advancements in AI continue and regulations catch up, we can anticipate an increase in the number of vehicles achieving higher levels of automation. The current global autonomous market is close to US$2 billion. However, it is projected to reach just over US$13.5 billion by 2030, marking an almost sevenfold increase in six years.
Safety is a key driver behind the progress of automated driving. Approximately 1.35 million individuals lose their lives each year in road crashes, with human error playing a significant role. Many believe that the adoption of advanced driver assistance systems (ADAS) and fully autonomous technology could significantly reduce these numbers.
Original ADAS
Despite the perception that ADAS is a relatively recent technology, the first adaptive cruise control system was actually introduced by Mercedes-Benz in 1999, laying the groundwork for today’s advanced driver assistance systems.
In the early 2000s, car manufacturers started integrating additional ADAS features like lane-keeping assist, automatic emergency braking, and blind-spot detection. These developments led to more sophisticated systems such as traffic sign recognition and driver monitoring, enhancing the vehicle’s ability to support the driver.
Advancement
Although fully autonomous vehicle technology is progressing rapidly, the infrastructure required to support it is still in its early phases. For instance, road markings and signs need to be standardized and easily recognizable by AI systems. Additionally, roads must be equipped with advanced sensors and communication systems to enable safe interaction between autonomous vehicles and other road users.
The future will heavily depend on vehicle-to-everything (V2X) communication, allowing cars to communicate with each other and infrastructure to enhance safety and traffic management. This technology is anticipated to become more widespread as we move toward higher levels of automation.
Crucial Foundation
With smart vehicles becoming increasingly reliable and integrated into our daily lives, cybersecurity has emerged as a vital concern. Hackers pose a real threat to the levels of automation achieved so far. To address these concerns, experts are developing security solutions to safeguard autonomous cars from hacking attempts and unauthorized access.
The advent of self-driving vehicles represents a significant shift in transportation, and smart cars are predicted to revolutionize the way we drive permanently.
As the automotive industry progresses through the six SAE Levels of Driving AutomationTM, vehicles are growing more intelligent and intuitive by the day.
In this piece, we delve into the benefits and challenges of artificial intelligence (AI) and robotics in the evolution of autonomous driving.
The high ground
Luxury vehicles available on the market today have come a long way from just a few years ago. They still transport you from point A to point B, but the travel experience has transformed significantly since the introduction of AI and robotics.
Thanks to sophisticated technology enabling features such as autonomous steering, acceleration, and braking (under various conditions), the latest cars and trucks can now make informed decisions that enhance our safety, comfort, and entertainment.
Here’s how.
AI’s main advantage lies in its ability to analyze data from different sensors and cameras, enabling vehicles to better understand their surroundings. Robotics facilitate the execution of intricate tasks such as navigating through traffic, parking, and predicting potential road hazards.
Together, they can take over the most stressful, unpredictable, and tiring parts of driving. This not only improves traffic safety, efficiency, and environmental impact but also allows human drivers to enjoy stress-free rides. Despite the promising progress made, it has not been without challenges.
Learning process
Driving a car that ensures you are in the correct lane and traveling at the appropriate speed while your favorite music playlist plays in the background is wonderful, but full autonomy is still a long way off. The reason might surprise you. As proficient as robotics are in advanced functionalities, the missing element that makes us human could be the greatest obstacle for robots to achieve full autonomy.
This is because, in addition to looking the part, AI and robotics lack one human trait. This trait is social interaction. Daily interactions with other drivers, cyclists, and pedestrians that are natural to human drivers pose a unique challenge for AI.
Situations such as interpreting hand signals from a traffic officer or understanding a pedestrian’s intention to cross the road are areas where humans excel, but this aspect still requires improvement in autonomous driving.
A two-way street
Robots may have a long way to go before they can recognize if another driver has just gestured a thank you, but while they struggle with human interaction, they compensate with other potential advantages. Despite their difficulty in understanding hand gestures, the same advanced features that are gradually enabling driverless cars are likely to also transform the future of the maritime industry through the creation of autonomous shipping ports.
Tasks such as loading and unloading are now handled by automated cranes and self-driving trucks, while AI algorithms are used to optimize routing and scheduling. These innovations not only enhance productivity but also play a crucial role in significantly reducing carbon emissions.
Moving forward
As we continue to advance AI and robotics, these two technologies are not only turning vehicles into autonomous entities capable of making informed decisions, but also revolutionizing our entire approach to transportation. With each new level of automation, the collaboration between robotics and AI will continue to bring us closer to a future of fully autonomous cars where humans are merely content passengers.
Suddenly, a person on a bike dressed as the Easter bunny appears and rides across the road. For the driver behind, there is a moment of surprise, a quick look in the rearview mirror, followed by slamming on the brakes. The driver quickly steers away from the cyclist, reacting impulsively. Whether it’s the Easter Bunny or a person in a costume is insignificant in this situation; the driver perceives an obstacle and responds accordingly.
It’s a completely different situation when artificial intelligence is in control. It hasn’t “learned” the scenario of an “Easter bunny on a bicycle” and therefore cannot clearly identify the object in front of it. Its reaction is uncertain. In the worst -case scenario, the AI becomes “confused” and makes the wrong decision.
A well-known driving test conducted by US researchers demonstrated the consequences of AI confusion. When a sticker was placed on a stop sign, the AI interpreted the sign not as an instruction to stop, but as a speed limit. The system chose a familiar option instead of issuing a warning. Incorrect decisions like this can have fatal results.
An ambiguous reality
“A perception AI that has never encountered a skater has no chance of correctly identifying them,” explains Sven Fülster, one of the four founders of the Berlin-based start-up Deep Safety. This is a challenge that the entire industry is grappling with Established in 2020, the company aims to address the biggest challenge of autonomous driving: preparing artificial intelligence for the unpredictability of real-life situations.
fortunately, encounters with cycling Easter bunnies are rare. In principle, AI can contribute to increased safety on the road. More than 90 percent of all traffic accidents are attributed to human error. AI systems can process, calculate, and interpret an almost unimaginable volume of data simultaneously. They are not distracted by smartphones, radios, or passengers. They do not get tired as long as the power supply and technology are functioning properly. Moreover, the more new data they process, the more precisely they operate.
However, real life presents an infinite combination of possibilities, and not every eventuality can be trained and tested. The most dangerous scenario is the misinterpretation of unforeseen traffic situations by technical systems: within traffic or at a stop sign. Or when encountering the Easter bunny .
An educational process for artificial intelligence
Will it ever be possible to navigate safely through the hectic rush hour of London, Cologne, Paris, or Berlin while relaxing at the wheel and reading the newspaper? “Certainly,” say the entrepreneurs at Deep Safety, who are sending their AI to driving school. “We are developing an AI that can admit when it doesn’t know something.”
Sven Fülster, CEO of the start-up, explains: “With our technology, a driverless car can comprehend the world on a much deeper level. We have incorporated what humans learn in driving school: anticipating and understanding the movements of others while thinking ahead .”
Deep Safety’s offering is named BetterAI. “We understand that AI, unlike humans, will interpret unknown situations in unpredictable ways. BetterAI is the first AI certified to meet the ISO26262 security standard, recognizing unknown situations, unknown entities, and people engaging in unknown behaviors ,” explain the entrepreneurs.
For instance, Deep Safety’s Perception AI can effectively manage unknown scenarios and ambiguous cases on the road. It can also identify the Easter Bunny on a bicycle – perhaps not as a person in disguise, but still as an unidentifiable object from which distance should be maintained .Current vehicle models’ AIs cannot accomplish this.
Real-time data analysis
Sebastian Hempel, Chief Technology Officer at Deep Safety, elucidates the reason why this seemed unattainable for a long time: “The challenge is to execute real-time analysis of perceptual data – what the camera ‘sees.’ It takes a considerable amount of time to process an image. Moreover, 30 images must be processed per second.” Deep Safety’s AI has reached a stage where this is possible, and was able to do so.
The creators of Deep Safety firmly believe that their technology can prevent similar misunderstandings by AI systems in the future. Their vision is ambitious: “Our immediate aim is to enhance the driver assistance systems currently in use on the roads,” says Fülster. “In the near future, our BetterAI will render the driver unnecessary. Ultimately, we aim to introduce autonomous driving to urban areas.”
In recent years, Artificial Intelligence (AI) has made a significant impact on the automotive sector, driving the development of level-4 and level-5 autonomous vehicles. Despite being in existence since the 1950s, the surge in AI’s popularity can be attributed to the vast amount of available data today. The proliferation of connected devices and services enables the collection of data across every industry, fueling the AI revolution.
While advancements are being pursued to enhance sensors and cameras for data generation in autonomous vehicles, Nvidia revealed its initial AI computer in October 2017 to facilitate deep learning, computer vision, and parallel computing algorithms. AI has become an indispensable element of automated drive technology, and understanding its functioning in autonomous and connected vehicles is crucial.
What is Artificial Intelligence?
The term “Artificial Intelligence” was coined by computer scientist John McCarthy in 1955. AI refers to the capability of a computer program or machine to think, learn, and make decisions. In a broader sense, it signifies a machine that emulates human cognition. Through AI, we enable computer programs and machines to perform tasks akin to human actions by feeding them copious amounts of data, which is analyzed and processed to facilitate logical thinking. Automating repetitive human tasks signifies just the beginning of AI’s potential, with medical diagnostic equipment and autonomous vehicles employing AI to save human lives.
The Growth of AI in Automotive
The automotive AI market was valued at $783 million in 2017 and is projected to reach nearly $11k million by 2025, with a CAGR of about 38.5%. IHS Markit predicted a 109% increase in the installation rate of AI-based systems in new vehicles by 2025, compared to the 8% adoption rate in 2015. AI-based systems are expected to become standard in new vehicles, particularly in two categories: infotainment human-machine interface and advanced driver assistance systems (ADAS) and autonomous vehicles.
The largest and fastest-growing technology in the automotive AI market is expected to be deep learning, a technique for implementing machine learning to achieve AI. Currently, it is employed in various applications such as voice recognition, recommendation engines, sentiment analysis, image recognition , and motion detection in autonomous vehicles.
How Does AI Work in Autonomous Vehicles?
AI is now a ubiquitous term, but how does it function in autonomous vehicles?
Let’s first consider the human aspect of driving, where sensory functions like vision and sound are used to observe the road and other vehicles. Our driving decisions, such as stopping at a red light or yielding to pedestrians, are influenced by memory. Years of driving experience train us to notice common elements on the road, like a quicker route to the office or a noticeable bump.
Although autonomous vehicles are designed to drive themselves, the objective is for them to mirror human driving behaviors. Achieving this involves providing these vehicles with sensory functions, cognitive capabilities (such as memory, logical thinking, decision-making, and learning), and executive functions that replicate human driving practices. The automotive industry has been continuously evolving to accomplish this in recent years.
According to Gartner, by 2020, approximately 250 million cars will be interconnected with each other and the surrounding infrastructure through various V2X (vehicle-to-everything communication) systems. As the volume of data input into in-vehicle infotainment (IVI) units and telematics systems increases, vehicles can capture and share not only their internal system status and location data, but also real-time changes in their surroundings. Autonomous vehicles are equipped with cameras, sensors, and communication systems to enable the generation of extensive data, allowing the vehicle, with the aid of AI, to perceive, understand, and make decisions akin to human drivers.
AI Perception Action Cycle in Autonomous Vehicles
When autonomous vehicles gather data from their surroundings and send it to the intelligent agent, a repeating loop called Perception Action Cycle is created. The intelligent agent then makes decisions based on this data, allowing the vehicle to take specific actions in its environment.
Now let’s break down the process into three main parts:
Part 1: Collection of In-Vehicle Data & Communication Systems
Numerous sensors, radars, and cameras are installed in autonomous vehicles to generate a large amount of environmental data. Together, these form the Digital Sensorium, enabling the vehicle to perceive the road, infrastructure, other vehicles, and surrounding objects. This data is then processed using super-computers, and secure data communication systems are used to transmit valuable information to the Autonomous Driving Platform.
Part 2: Autonomous Driving Platform (Cloud)
The cloud-based Autonomous Driving Platform contains an intelligent agent that utilizes AI algorithms to make decisions and act as the vehicle’s control policy. It is also connected to a database where past driving experiences are stored. This, combined with real-time input from the vehicle and its surroundings, enables the intelligent agent to make accurate driving decisions.
Part 3: AI-Based Functions in Autonomous Vehicles
Based on the decisions of the intelligent agent, the vehicle can detect objects on the road, navigate through traffic without human intervention, and reach its destination safely. Additionally, AI-based functional systems such as voice and speech recognition, gesture controls, eye tracking , and other driving monitoring systems are being integrated into autonomous vehicles.
These systems are designed to enhance user experience and ensure safety on the roads. The driving experiences from each ride are recorded and stored in the database to improve the intelligent agent’s decision-making in the future.
The Perception Action Cycle is a repetitive process. The more cycles that occur, the more intelligent the agent becomes, leading to greater accuracy in decision-making, especially in complex driving situations. With more connected vehicles, the intelligent agent can make decisions based on data generated by multiple autonomous vehicles.
Artificial intelligence, particularly neural networks and deep learning, is essential for the proper and safe functioning of autonomous vehicles. AI is driving the development of Level 5 autonomous vehicles, which won’t require a steering wheel, accelerator, or brakes.
An autonomous car can sense its environment and operate without human involvement. It doesn’t require a human passenger to take control of the vehicle at any time or even be present in the vehicle at all. An autonomous car can navigate anywhere a traditional car can and perform all the tasks of an experienced human driver.
The Society of Automotive Engineers (SAE) currently defines 6 levels of driving automation, ranging from Level 0 (fully manual) to Level 5 (fully autonomous). These levels have been adopted by the US Department of Transportation.
Autonomous vs. Automated vs. Self-Driving: What’s the Difference?
Instead of using the term “autonomous,” the SAE prefers “automated.” This choice is made because “autonomy” has broader implications beyond the electromechanical. A fully autonomous car would be self-aware and capable of making its own choices; for example , if you say “drive me to work,” the car might decide to take you to the beach instead. In contrast, a fully automated car would follow instructions and then drive itself.
The term “self-driving” is often used interchangeably with “autonomous,” but there’s a slight difference. A self-driving car can operate autonomously in some or all situations, but a human passenger must always be present and ready to take control. Self-driving cars fall under Level 3 (conditional driving automation) or Level 4 (high driving automation).
They are subject to geofencing, unlike a fully autonomous Level 5 car that could travel anywhere.
How Do Autonomous Cars Work?
Autonomous vehicles depend on sensors, actuators, sophisticated algorithms, machine learning systems, and robust processors to run software.
Autonomous cars generate and update a map of their surroundings using various sensors located in different parts of the vehicle. Radar sensors monitor nearby vehicle positions. Video cameras recognize traffic lights, read road signs, track other vehicles, and locate pedestrians. Lidar sensors bounce light pulses off the car’s surroundings to measure distances, detect road edges, and identify lane markings. Ultrasonic sensors in the wheels identify curbs and other vehicles during parking.
Advanced software processes all this sensory input, plots a path, and sends instructions to the car’s actuators, which manage acceleration, braking, and steering. The software utilizes hard-coded rules, obstacle avoidance algorithms, predictive modeling, and object recognition to comply with traffic rules and navigate obstacles.
What Are The Challenges With Autonomous Cars?
Fully autonomous (Level 5) cars are being tested in various areas of the world but are not yet available to the general public. We are still years away from that. The challenges encompass technological, legislative, environmental, and philosophical aspects. These are just a few of the uncertainties.
Lidar and Radar
Lidar is expensive and is still finding the appropriate balance between range and resolution. Would the lidar signals of multiple autonomous cars interfere with each other if they were to drive on the same road? Will the available frequency range support mass production of autonomous cars if multiple Are radio frequencies available?
Weather Conditions
How will autonomous cars perform in heavy precipitation? Lane dividers disappear when there is snow on the road. How will the cameras and sensors track lane markings if they are obscured by water, oil, ice, or debris?
Traffic Conditions and Laws
Will autonomous cars encounter issues in tunnels or on bridges? How will they fare in bumper-to-bumper traffic? Will autonomous cars be restricted to a specific lane? Will they have access to carpool lanes? What about the fleet of traditional cars sharing the road for the next 20 or 30 years?
State vs. Federal Regulation
The regulatory process in the US has shifted from federal guidance to state-by-state mandates for autonomous cars. Some states have proposed a per-mile tax on autonomous vehicles to prevent the rise of “zombie cars” driving around without passengers. Lawmakers have also drafted bills stipulating that all autonomous cars must be zero-emission vehicles and have a panic button installed. Will the laws differ from state to state? Will you be able to cross state lines with an autonomous car?
Accident Liability
Who is responsible for accidents caused by an autonomous car? The manufacturer? The human passenger? The latest blueprints indicate that a fully autonomous Level 5 car will not have a dashboard or a steering wheel, so a human passenger would not have the option to take control of the vehicle in an emergency.
Artificial vs. Emotional Intelligence
Human drivers rely on subtle cues and non-verbal communication to make split-second judgment calls and predict behaviors. Will autonomous cars be able to replicate this connection? Will they have the same life-saving instincts as human drivers?
What Are The Benefits Of Autonomous Cars?
The potential scenarios for convenience and quality-of-life improvements are endless. The elderly and the physically disabled would gain independence. If your children were at summer camp and forgot their bathing suits and toothbrushes, the car could bring them the forgotten items. You could even send your dog to a veterinary appointment.
But the primary promise of autonomous cars lies in the potential to significantly reduce CO2 emissions. Experts identified in a recent study three trends that, if adopted concurrently, would unleash the full potential of autonomous cars: vehicle automation, vehicle electrification, and ridesharing.
By 2050, these “three revolutions in urban transportation” could:
Reduce traffic congestion (30% fewer vehicles on the road)
Cut transportation costs by 40% (in terms of vehicles, fuel, and infrastructure)
Improve walkability and livability
Free up parking lots for other uses (schools, parks, community centers)
Reduce urban CO2 emissions by 80% worldwide
What is a self-driving car?
A self-driving car, sometimes referred to as an autonomous car or driverless car, is a vehicle that utilizes a combination of sensors, cameras, radar, and artificial intelligence (AI) to travel between destinations without a human operator. To qualify as fully autonomous, a vehicle must be capable of navigating to a predetermined destination without human intervention.
The potential impact of self-driving cars on future roadways and transportation industries is significant. For instance, they could potentially decrease traffic congestion, reduce the number of accidents, and facilitate the emergence of new self-driving ride-hailing and trucking services.
Audi, BMW, Ford, Google, General Motors, Tesla, Volkswagen, and Volvo are among the companies that are developing and testing autonomous vehicles. Waymo, a self-driving car test project by Google’s parent company Alphabet Inc., utilizes a fleet of self-driving cars, including a Toyota Prius and an Audi TT, to navigate hundreds of thousands of miles on streets and highways.
Self-driving car systems are powered by AI technologies. Developers of self-driving cars leverage extensive data from image recognition systems, as well as machine learning and neural networks, to construct autonomous driving systems.
Neural networks identify patterns within the data and feed them to machine learning algorithms, which are sourced from a variety of sensors, such as radar, lidar, and cameras. These sensors gather data utilized by the neural network to learn and recognize elements within the driving environment, including traffic lights, trees, curbs, pedestrians, and street signs.
An autonomous car employs an array of sensors to detect nearby vehicles, pedestrians, curbs, and signs.
The self-driving car constructs a map of its environment to comprehend its surroundings and plans its route. It must ascertain the safest and most efficient routes to its destination while adhering to traffic regulations and implementing obstacle avoidance. Geofencing, a concept that assists vehicles with self-driving capabilities in navigating predefined boundaries, is also employed.
In automotive applications, geofencing is often used for fleet management, vehicle tracking, and enhancing driver safety. This involves creating virtual boundaries, or geofences, around specific geographic areas using Global Positioning System (GPS) or other location-based technology. These boundaries can trigger automated actions or alerts when a vehicle enters or exits the defined area.
Waymo utilizes a combination of sensors, lidar, and cameras to identify and predict the behavior of objects around the vehicle. This occurs within a fraction of a second. The system’s maturity is crucial; the more the system operates, the more data is integrated into its deep learning algorithms, enabling it to make more refined driving decisions.
The operation of Waymo vehicles is detailed below:
– Input a destination by the driver or passenger, and the car’s software computes a route.
– A rotating, roof-mounted lidar sensor monitors a 60-meter range around the car and generates a dynamic three-dimensional map of the car’s immediate environment.
– A sensor on the left rear wheel tracks lateral movement to determine the car’s position relative to the 3D map.
– Radar systems in the front and rear bumpers calculate distances to obstacles.
– AI software in the car is linked to all the sensors and collects input from Google Street View and in-car video cameras.
– AI mimics human perceptual and decision-making processes through deep learning and controls actions in driver control systems, such as steering and brakes.
– The car’s software references Google Maps for advanced information on landmarks, traffic signs, and lights.
– An override function is available to allow a human to take over vehicle control if needed.
The Waymo project is an example of a nearly fully autonomous self-driving car. A human driver is still necessary but only to intervene when required. Although not entirely self-driving in the purest sense, it can operate independently under ideal conditions and is highly autonomous.
Numerous vehicles currently available to consumers do not possess full autonomy due to various technological, regulatory, and safety considerations. Despite being credited with driving progress toward self-driving cars, Tesla faces obstacles, such as technological complexity, sensor constraints, and safety concerns, Despite offering self-driving features in many of its cars.
Many production cars today feature a lower level of autonomy but still have some self-driving capabilities.
Notable self-driving features include:
– Hands-free steering re-centers the car without the driver’s hands on the wheel, though the driver still needs to remain attentive.
– Adaptive cruise control (ACC) automatically maintains a chosen distance between the driver’s car and the vehicle ahead.
– Lane-centering steering intervenes when the lane driver crosses lane markings by guiding the vehicle toward the opposite marking automatically.
– Self-parking utilizes the car’s sensors to maneuver into a parking space with minimal or no driver input, handling steering, acceleration, and guidance automatically.
– Highway driving assist combines various features to assist drivers during highway travel.
– Lane-change assistance monitors the surrounding lane traffic of a vehicle in order to aid the driver in safely changings. This feature can either provide alerts or steer the vehicle automatically in safe conditions.
– Lane departure warning (LDW) notifies the driver if the vehicle begins to change lanes without signaling.
– Summon is a feature found in Tesla vehicles that can independently navigate out of a parking space and travel to the driver’s location.
– Evasive-steering assist steers the vehicle automatically to help the driver in avoiding an impending collision.
– Automatic emergency braking (AEB) recognizes imminent collisions and applies the brakes with the aim of preventing an accident.
Various car manufacturers offer a combination of these autonomous and driver assistance technologies including the following:
Audi’s Traffic Jam Assist feature assists drivers in heavy traffic by assuming control of steering, acceleration, and braking.
General Motors’ Cadillac brand provides Super Cruise for hands-free driving on highways.
Genesis learns the driver’s preferences and implements autonomous driving that mirrors these behaviors.
Tesla’s Autopilot feature offers drivers with LDW, lane-keep assist, ACC, park assist, Summon and advanced self-driving capabilities.
Volkswagen IQ Drive with Travel Assist includes lane-centering and ACC.
Volvo’s Pilot Assist system offers semi-autonomous driving, lane-centering assist, and ACC.
Levels of autonomy in autonomous vehicles
The Society of Automotive Engineers, known as SAE, establishes the following six levels of driving automation as follows:
Level 0: No driving automation. The driver executes all driving operations.
Level 1: Driver assistance. This level facilitates driver assistance, in which the vehicle can aid with steering, accelerating, and braking, but not concurrently. The driver must also remain engaged.
Level 2: Partial driving automation. This level involves partial automation, where two or more driving automated functions can operate simultaneously. The vehicle can control steering, accelerating, and braking, but the driver must remain vigilant and be prepared to regain control at any time .
Level 3: Conditional driving automation. The vehicle can drive independently in specific scenarios. It can perform all driving tasks in scenarios such as driving on specific highways. The driver is still responsible for taking control when necessary.
Level 4: High driving automation. The vehicle can self-drive in certain scenarios without driver input. Driver input is optional in these scenarios.
Level 5: Full driving automation. The vehicle can self-drive under all conditions without any driver input.
The US National Highway Traffic Safety Administration (NHTSA) defines a similar level of driving automation.
Uses for self-driving vehicles
As of 2024, carmakers have achieved Level 4. Manufacturers must overcome various technological milestones, and several crucial issues must be addressed before fully autonomous vehicles can be commercially acquired and used on public roads in the US although vehicles with Level 4 autonomy are not available for public use, they are being employed in other capacities.
For instance, Waymo collaborated with Lyft to offer a fully autonomous commercial ride-sharing service named Waymo One. Customers can hail a self-driving car to transport them to their destination and provide feedback to Waymo. The cars still include a safety driver in case the ADS needs to be overridden. The service is offered in the Phoenix metropolitan area; San Francisco; Los Angeles; and Austin, Texas.
Autonomous street-cleaning vehicles are also being manufactured in China’s Hunan province, meeting the Level 4 prerequisites for independently navigating a familiar environment with limited novel situations.
Projections from manufacturers vary on when widespread availability of Level 4 and 5 vehicles will be achieved. A successful Level 5 vehicle must be able to react to novel driving situations as well as or better than a human can. Similarly, approximately 30 US states have enacted legislation on self-driving vehicles. Laws differ by state, but they typically cover aspects such as testing, deployment, liability, and regulation of autonomous vehicles.
The advantages and disadvantages of autonomous cars
Autonomous vehicles are a culmination of various technical complexities and accomplishments that continue to improve over time. They also come with many anticipated and unanticipated benefits and challenges.
Benefits of self-driving cars
The primary benefit championed by proponents of autonomous vehicles is safety. A US Department of Transportation and NHTSA statistical projection of traffic fatalities for 2022 estimated that 40,990 people died in motor vehicle traffic accidents that year — of those fatalities, 13,524 were alcohol-related. Self-driving cars can eliminate risk factors, such as drunk or distracted driving, from the equation. However, self-driving cars are still susceptible to other factors, such as mechanical issues, that can cause accidents.
In theory, if most vehicles on the roads were autonomous, traffic would flow smoothly and there would be reduced traffic congestion. In fully automated cars, the occupants could engage in various activities without having to pay attention to driving.
Self-driving trucks have undergone testing in the United States and Europe, enabling drivers to use autopilot for long distances. This allows drivers to rest or attend to other tasks, improving driver safety and fuel efficiency through truck platooning, which utilizes ACC, collision avoidance systems, and vehicle-to-vehicle communication for cooperative ACC.
Despite the potential benefits, there are some downsides to self-driving cars. Riding in a vehicle without a human driver at the wheel might initially be unsettling. As self-driving features become more common, human drivers might overly depend on autopilot technology instead of being prepared to take control in the event of software failures or mechanical issues.
According to a Forbes survey, self-driving vehicles are currently involved in twice as many accidents per mile compared to non-self-driving vehicles.
For instance, in 2022, Tesla faced criticism after a video showed a Tesla car crashing into a child-sized dummy during an auto-brake test. There have been numerous reports of Tesla cars being involved in crashes while in full self-driving mode. In one such incident in 2023, a Tesla Model Y in full self-driving mode hit a student who was stepping off a bus. Although the student initially sustained life-threatening injuries, they were upgraded to good condition a few days after the incident.
Other challenges of self-driving cars include the high production and testing costs as well as the ethical considerations involved in programming the vehicles to react in different situations.
Weather conditions also pose a challenge. Environmental sensors in some vehicles might be obstructed by dirt or have their view hindered by heavy rain, snow, or fog.
Self-driving cars face the task of recognizing numerous objects in their path, ranging from debris and branches to animals and people. Additional road challenges include GPS interference in tunnels, lane changes due to construction projects, and complex decisions such as where to stop to give way to emergency vehicles.
The systems must make rapid decisions on whether to slow down, swerve, or continue normal acceleration. This ongoing challenge has led to reports of self-driving cars hesitating and swerving unnecessarily when objects are detected on or near the road.
This issue was evident in a fatal accident in March 2018 involving an autonomous car operated by Uber. The company reported that the vehicle’s software identified a pedestrian but dismissed it as a false positive, failing to swerve to avoid hitting her. Following the crash, Toyota temporarily halted the testing of self-driving cars on public roads and continued evaluations in its test facility. The Toyota Research Institute created a new 60-acre test facility in Michigan to further advance automated vehicle technology.
Crashes also raises the issue of liability, as legislators have yet to define who is responsible when an autonomous car is involved in an accident. There are also significant concerns about the potential for the software used to operate autonomous vehicles to be hacked, and automotive companies are addressing cybersecurity risks.
In the United States, car manufacturers must comply with the Federal Motor Vehicle Safety Standards issued and regulated by NHTSA.
In China, car manufacturers and regulators are pursuing a different approach to meet standards and make self-driving cars a common feature. The Chinese government is reshaping urban environments, policies, and infrastructure to create a more accommodating setting for self-driving cars.
This includes formulating guidelines for human mobility and enlisting mobile network operators to share the processing load needed to provide self-driving vehicles with the necessary navigation data. The autocratic nature of the Chinese government allows for this approach, bypassing the legalistic processes that testing is subjected to in the United States.
The advancement toward self-driving cars began with gradual automation features focusing on safety and convenience before the year 2000, including cruise control and antilock brakes. Following the turn of the millennium, advanced safety features such as electronic stability control, blind-spot detection, and collision and departure warnings were introduced in lane vehicles. Between 2010 and 2016, vehicles began incorporating advanced driver assistance capabilities such as rearview video cameras, automatic emergency brakes, and lane-centering assistance, according to NHTSA.
Since 2016, self-driving cars have progressed toward partial autonomy, featuring technologies that help drivers stay in their lane, as well as ACC and self-parking capabilities.
In September 2019, Tesla introduced the Smart Summon feature that allowed Tesla vehicles to maneuver through parking lots and reach the owner’s location without anyone in the car. In November 2022, Tesla revealed that its Full-Self Driving feature was in beta. Although it’s now out of beta testing and still called Full Self-Driving, it is not a true self-driving feature, functioning only as a Level 2 autonomous system. It offers advanced driver assistance features but still necessitates the driver to remain alert at all times.
Currently, new cars are being launched with capabilities such as ACC, AEB, LDW, self-parking, hands-free steering, lane-centering, lane change assist, and highway driving assist. Fully automated vehicles are not yet publicly accessible and may not be for several years. In the United States, the NHTSA gives federal guidance for introducing a new ADS onto public roads. As autonomous car technologies progress, so will the department’s guidance.
In June 2011, Nevada became the first jurisdiction globally to permit driverless cars to undergo testing on public roads. Since then, California, Florida, Ohio, and Washington, DC, have also permitted such testing. About 30 US states have now enacted laws regarding self-driving vehicles.
The history of driverless cars dates back much further. Leonardo da Vinci created the first design around 1478. Da Vinci’s “car” was crafted as a self-propelled robot powered by springs, featuring programmable steering and the capability to follow predetermined routes.
Self-driving cars are intricate and incorporate numerous interconnected systems. Discover how AI aids in driving for autonomous vehicles.
Some Question for Future EV
The primary question regarding the future of car transportation is whether we will keep buying and owning vehicles, or if we will simply rent them as needed.
This question brings into conflict the views of traditional car manufacturers like GM with those of companies such as Waymo, Didi, and AutoX. As the autonomous driving industry evolves, we observe Tesla advancing its driving technologies, with Elon Musk asserting that these innovations will soon enable him to manage a fleet of robotic taxis, thereby justifying his company’s market valuation. Conversely, companies like Waymo, Didi, and AutoX are already running fully autonomous cab fleets in various cities across the US, China, and Russia. Some established companies like Volvo are also aiming to either operate such fleets or provide autonomous vehicles for competitors.
On the other hand, GM plans to sell autonomous vehicles directly to consumers by around 2030. This approach overlooks the reality that cars are heavily underutilized, as they typically spend only about 3% of the time being driven and the remaining 97% are parked. However, as we know, people have a tendency to desire ownership, even for items they use infrequently, such as private swimming pools.
If individuals are going to purchase vehicles equipped with autonomous driving features, the costs associated with sensors and the technology employed must continue to decrease. LiDAR sensors, for example, have seen dramatic reductions in both price and size, dropping from a costly “spinning KFC bucket” at around $75,000 in 2015 to today’s versions that can be found for about $100, comparable to the size of a soda can or even smaller.
Meanwhile, Volkswagen is exploring subscription models, with an estimated cost of approximately $8.5 per hour. Beginning in the second quarter of 2022, Volkswagen expects to offer owners of its ID.3 and ID.4 electric vehicles some subscription options, like enhanced range, additional features, or entertainment systems for use during charging, which would be charged by the hour. This concept is intricate, as it involves the manufacturer from whom you bought your vehicle enabling or disabling specific features, which could lead users to feel that they are being denied access rather than granted when they pay, a notion not typically associated with car ownership.
Regardless, Volkswagen envisions a future where vehicle ownership remains prevalent. The challenge with this scenario, however, is not merely about technology availability, pricing, or business models, but rather about urban planning: simply replacing existing vehicles with autonomous ones wouldn’t resolve the issues of traffic congestion.
Many individuals would still rely on their vehicles for errands, school runs, or evading parking fees by leaving cars on the street to circulate, contributing to increased road usage rather than alleviating it. Instead, the focus should shift towards reducing the number of cars on the road and transforming urban spaces into pedestrian-friendly areas, enhancing public transport and micro-mobility options, which would lead to an improved quality of life. This approach envisions autonomous transportation as a service rather than the prevailing model of ownership.
To most traditional car manufacturers, any strategy that diverges from individual ownership poses a threat to sales. A service model relying on fleets constitutes an entirely different business paradigm, one that they lack experience in. The consequences extend beyond the future of car manufacturers, influencing the kind of urban environment we aspire to have. It is not solely the traditional car manufacturers that need to be pushed into the future; we, as consumers, have developed a fondness for our cars, often viewing them as status symbols.
Transitioning from individual ownership to a transport-as-a-service framework would necessitate widespread availability, competitive pricing, and flexibility that transcends conventional models (for instance, many of us acquire an oversized vehicle meant for daily commutes despite only needing it for a few trips per year). Therefore, it is essential to consider both efficiency and sustainability.
Will we manage to shift towards a transport-as-a-service framework, or will we still find ourselves purchasing vehicles decades from now, utilizing them barely 3% of the time? Will traditional automobile companies emerge victorious, or will practicality ultimately prevail?
“The technology is effectively available… We possess machines capable of making numerous rapid decisions that could significantly decrease traffic fatalities, substantially enhance the efficiency of our transportation infrastructure, and aid in addressing issues like carbon emissions that contribute to global warming.”
Surprisingly, this observation didn’t come from a visionary like Elon Musk, Mark Zuckerberg, or Jeff Bezos; rather, it was President Obama talking about self-driving vehicles in a WIRED interview last fall.
Over the past year, there have been several groundbreaking developments related to autonomous cars, including Ford elevating its autonomous vehicle leader to the CEO position, Tesla facing an NHSTA investigation that revealed a 40 percent reduction in accidents with Autopilot activated, and Audi launching mass sales of a “Level 3” self-driving vehicle.
However, many issues surrounding autonomous vehicles still lack answers. How will self-driving cars navigate ethical dilemmas, such as the “trolley problem”? How will urban areas, roadways, and parking situations transform? What will become of the millions of people working as ridesharing drivers or long-haul truck drivers? What is the optimal configuration of sensors for autonomous vehicles?
We believe that numerous unresolved questions about self-driving cars will not only be solved through technological advancements but also through the emerging business frameworks surrounding these vehicles. For instance, if regulators opt to impose a tax on self-driving vehicles based on the miles driven within a city, this could create varying incentives for vehicles to remain in close proximity to optimize trips and minimize expenses. If automotive companies choose to sell directly to fleet operators instead of individual consumers, it will alter how they allocate marketing and research and development resources.
The fundamental business models and profit incentives will serve as key indicators of how companies will navigate various technological, business, and societal challenges.
What might the operating system for autonomous vehicles look like? Apple, Google, and Microsoft — iOS, Android, and Windows. The three largest companies in the world today all possess (or effectively control) their own operating systems. Why is this? Because holding control over an operating system is an extremely vital position within a value chain. Operating system providers create an abstraction layer over hardware (thus commoditizing hardware suppliers) and establish a direct connection to end-users (thereby allowing them to charge anyone else wanting to reach those end-users).
In the realm of servers, desktops, laptops, smartphones, and tablets, each of these three companies has a unique strategy for capturing value from their operating system. Apple leverages its operating system to achieve higher profit margins on its hardware, Google utilizes its operating system to generate more revenue from its advertising business, and Microsoft directly charges for its operating system and the essential applications that operate on top of it.
At present, automakers and tech firms are competing to develop the software that will power self-driving cars, but it remains uncertain how these companies will generate revenue from their software. Tesla is adopting an Apple-like strategy, aiming to construct a comprehensive hardware-software integration; firms like Baidu and Udacity are creating “open-source” self-driving car technology to facilitate the sale of complementary products; while companies such as Mobileye and Uber seem to be forming partnerships where they will serve as software providers to car manufacturers.
It’s probable that multiple models will arise to monetize the vehicle operating system layer, and these models will profoundly influence how different companies allocate resources for R&D, marketing, lobbying, and operational activities. If the Tesla model of vertical integration prevails, continue to expect eye-catching marketing and stylish vehicles, as high-priced, high-margin vehicle sales will be the primary business driver. Alternatively, if the Baidu “open source” model gains traction, anticipate a surge in low-cost automobiles from various manufacturers, with Baidu monetizing their open-source software by offering additional services.
Some of these implications are straightforward, yet there are also less apparent effects. For instance, companies that maintain a “closed” hardware/software ecosystem may be disinclined to share their data with others, potentially leading to challenges in establishing a national legislative framework for autonomous vehicles due to public apprehensions about safety and equity. Furthermore, if a single company establishes a significant lead yet is reluctant to share its data or algorithms, it might influence regulations in a manner that complicates the ability of others to develop competing systems.
How will consumers finance their transportation?
Will it be through services or personal vehicles? Currently, firms like BMW are making various predictions regarding the future of transportation use. BMW continues to sell cars directly to consumers, but they are also offering “transportation as a service,” enabling users to rent free-floating cars, request rides with drivers, or eventually summon autonomous vehicles. They believe that people will prefer to access transportation differently depending on the time and location, and they aim to present all these options via a single application.
Conversely, companies such as Mazda are convinced that consumers will always desire to drive, and they are focused on creating and selling vehicles to a “core customer who enjoys driving.”
These two perspectives are not necessarily conflicting, as different market segments will have diverse demands. However, the relative sizes of the transportation-as-a-service and the “owning a car” markets are expected to evolve, likely leading more individuals to favor on-demand transportation over car ownership, which often results in an underutilized asset.
As we shift towards a transportation-as-a-service model, the operational strategies of car manufacturers will also transform. Presently, automobile manufacturers are the largest advertisers in the entire industry. If consumers stop purchasing cars and instead opt for rides with services like Uber or rentals from Zipcar, it will significantly alter the billions spent on car advertising. Additionally, this will change the profit distribution throughout the automotive sector.
If ridesharing companies succeed in making vehicles interchangeable so that consumers become indifferent to the type of car used to travel from point A to point B, they will be able to capture a substantial share of the transportation industry’s profits and reinvest those earnings into their technological platforms and marketplaces.
What implications arise if ridesharing firms increasingly divert revenue and profits from manufacturers of cars and trucks? One major consequence would be that ridesharing companies might prioritize investment in automation to reduce expenses rather than seek ways to employ drivers (who are likely car buyers), thereby potentially accelerating the decline of driving jobs. Another significant outcome could be that car dealerships become less important as sales channels since ridesharing firms might choose to purchase vehicles in bulk from manufacturers to cut costs.
Who creates the data? Who manages the data? And who holds ownership of the data? Autonomous vehicles will not only produce but also consume a vast amount of data. Vehicles require driving information to train their neural networks, mapping data for road navigation and obstacle avoidance, regulatory information to follow speed limits and parking laws, and passenger data to create personalized travel experiences tailored to individual riders. Simultaneously, autonomous vehicles will generate terabytes of data daily from various sensors, such as cameras, radar, lidar, sonar, and GPS, which can be leveraged to enhance the vehicles’ driving models, assist city traffic planning, or optimize routes for ridesharing companies.
This data generation and consumption will necessitate new infrastructure and software, as well as different business models for data processing, sharing, and utilization. We have already witnessed several companies forming partnerships to either obtain access to or establish high-definition mapping data, which is critical to operate autonomous vehicles. Another vital aspect of the data equation is entities that employ human intelligence to produce training data for machines. For the foreseeable future, these “human-in-the-loop” systems will play a crucial role in generating high-quality training data and feedback loops.
The questions of data ownership, access rights, and processing methodologies will be pivotal for companies and regulators in the upcoming years. As vehicles generate and utilize increasing volumes of data, it will be essential to monitor who controls that data and how they opt to monetize it. It is likely that a number of significant companies will emerge, focused solely on the collection and refinement of data, and the collaborative dynamics between these firms and others in the automotive sector are currently under review.
In the conventional landscape of desktop and mobile operating systems, these systems can derive value by commoditizing hardware suppliers and aggregating consumers, providing other application developers with easy access to a user-friendly development platform and a distribution network that reaches a substantial audience of potential customers.
In the automotive sector, this indicates that companies like Uber and Lyft are well-positioned to serve as the primary hub for demand-side aggregation and supply-side commoditization. Ridesharing users are generally indifferent to the specific vehicle they travel in, and these companies act as an aggregation point for individuals looking to access a variety of transportation options. Lyft’s recent announcement regarding the creation of a self-driving division and system for car manufacturers implies they view this as a significant opportunity.
Nonetheless, this industry is still in its infancy, and a range of participants—from automotive suppliers like Delphi to tech giants such as Alphabet—are eager to ensure they secure a part of the transportation value chain. This could manifest in several ways, such as Tesla potentially creating a cohesive supply chain from components to rides that optimizes user experience, or Ford possibly discovering a method to deliver the most effective driving software that every other manufacturer may need to license.
Companies that offer higher-level services to both consumers and businesses and effectively unite supply and demand are likely to generate the greatest value and profit margins.
Regardless of the outcome, the victor in this competition for profit will have the capacity to invest more in research, enhance marketing efforts, and maintain a pace of innovation that outstrips rivals. This outcome will enable the winners to influence public discourse surrounding autonomous vehicles, steer industry recommendations on tax policies, and collaborate closely with local, state, and federal officials to reshape urban environments and society.
What is the influence and responsibility of regulators in the evolution of autonomous vehicles?
Technology firms historically have not excelled in collaboration with regulators (or automotive manufacturers), and while platforms like Airbnb and Uber have grappled with this dynamic, automakers, more than any other sector, have a track record of cooperating with government entities to comprehend (and potentially shape) regulations and compliance.
Regulators should be an essential component in the development and rollout of autonomous vehicles. It will be challenging to find a harmony between allowing the industry to lead regulatory approaches and permitting regulation to dictate industry innovations, but achieving this balance could result in significant advantages such as decreased traffic fatalities, reduced emissions, and improved transportation for all.
The transition from human-driven to autonomous vehicles will not occur overnight. For a considerable duration, vehicles operated by humans and those driven autonomously will coexist, which is a reality that regulators must consider.
If there’s one aspect that both the public and regulators should focus on over the next three to five years, it’s how companies intend to generate revenue from autonomous vehicles. The prevailing business models will influence decision-making, and these choices will have critical implications for the future of transportation.
Transport is an essential aspect of modern life, but the traditional combustion engine is rapidly becoming outdated. Gasoline or diesel vehicles are highly polluting and are quickly being replaced by fully electric vehicles. Fully electric vehicles (EV) have no emissions from the tailpipe and are much better for the environment. The electric vehicle revolution is here, and you can be a part of it. Will your next vehicle be electric?
Reduced operational costs
The operational cost of an electric vehicle is much lower than that of an equivalent petrol or diesel vehicle. Electric vehicles use electricity to charge their batteries instead of using fossil fuels like petrol or diesel. Electric vehicles are more efficient, and when combined with the electricity cost, it means that charging an electric vehicle is cheaper than filling petrol or diesel for your travel requirements. The use of renewable energy sources can make the use of electric vehicles more environmentally friendly. The cost of electricity can be further reduced if charging is done with the help of renewable energy sources installed at home, such as solar panels.
Minimal maintenance costs
Electric vehicles have very low maintenance costs due to having fewer moving parts compared to an internal combustion vehicle. The servicing needs for electric vehicles are fewer than the petrol or diesel vehicles. Therefore conventional, the yearly cost of running an electric vehicle is significantly lower.
Zero Tailpipe Emissions
Driving an electric vehicle can help you reduce your carbon footprint because there will be no tailpipe emissions. You can further reduce the environmental impact of charging your vehicle by opting for renewable energy options for home electricity.
Tax and Financial Advantages
Registration fees and road tax for purchasing electric vehicles are lower than for petrol or diesel vehicles. There are multiple policies and incentives offered by the government depending on which state you are in. To learn more about electric vehicle incentives, click below.
Electric Vehicle Incentive
The use of petrol and diesel is harming our planet
The availability of fossil fuels is limited, and their use is harming our planet. Harmful emissions from petrol and diesel vehicles lead to long-term, negative effects on public health. The emissions impact of electric vehicles is much lower than that of petrol or diesel vehicles. From an efficiency perspective, electric vehicles can convert around 60% of the electrical energy from the grid to power the wheels, but petrol or diesel cars can only convert 17%-21% of the energy stored in the fuel to the wheels.
This represents a waste of around 80%. Fully electric vehicles have zero tailpipe emissions, but even when electricity production is taken into account, petrol or diesel vehicles emit almost 3 times more carbon dioxide than the average EV. To reduce the impact of charging electric vehicles, India aims to achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by the year 2030. Therefore, electric vehicles are the way forward for Indian transport, and we must switch to them now.
Electric Vehicles are Easy to Drive and Quiet
Electric vehicles don’t have gears and are very convenient to drive. There are no complicated controls, just accelerate, brake, and steer. When you want to charge your vehicle, just plug it in to a home or public charger. Electric vehicles are also quiet, reducing the noise pollution that traditional vehicles contribute to.
Convenience of Charging at Home
Imagine being at a busy fuel station during peak hours, and you are getting late to reach your workplace. These problems can easily be overcome with an electric vehicle. Simply plug your vehicle in at your home charger for 4-5 hours before you plan to go. If you are able to get a charger where you park at home, it is very convenient to plan your journeys in advance. What if you forget to plug in your machine someday? Then you can easily take the help of fast chargers or even battery swapping services if you are on a two-wheeler on the road.
No Noise Pollution
Electric vehicles operate silently as there is no engine under the hood. No engine means no noise. The electric motor functions so quietly that you need to peek into your instrument panel to check if it is ON. Electric vehicles are so silent that manufacturers have to add artificial sounds to make them safe for pedestrians.
Electric vehicles (EVs) have gained popularity in more recent years. What started to help the environment has brought financial and social benefits too. With the government’s upcoming ban on new petrol and diesel cars by 2030, you may soon find yourself charging your car instead of fueling it.
Main points
The primary environmental benefits of owning an electric car are zero carbon emissions, reducing your carbon footprint, improved air quality, and less noise pollution.
Economic benefits include lower operational and maintenance costs, exemptions from road tax and congestion charges, and increasing resale value.
The UK government provides grants that can discount up to 35% off the price of a new electric car, with a maximum cap of £1,500, and can cover up to 75% of the expenses for installing a home charger.
Initially, the cost of insurance for electric cars is high, but it is gradually decreasing as the market expands and knowledge about electric vehicles improves.
Charging an electric car in a street setting is more common, highlighting the numerous benefits of electric vehicles (EVs), which have been gaining significant traction in the automotive industry becoming.
The move towards electric vehicles is evident due to their wide range of benefits, such as being environmentally friendly and providing economic savings, making them an increasingly popular choice for conscientious consumers.
Let’s delve into the world of EVs and explore the primary advantages that could pique your interest in switching.
Environmentally friendly: a breath of fresh air
The substantial positive impact of electric cars on the environment makes them a highly compelling option.
In contrast to traditional petrol and diesel vehicles, electric cars produce zero carbon emissions, positioning them as a clean and environmentally conscious alternative. Here are a few environmental benefits of driving an EV:
Reduced carbon footprint: By not emitting exhaust gases, electric cars contribute significantly to a decrease in greenhouse gases.
Improved air quality: Electric vehicles, by not producing CO2 emissions, aid in reducing air pollution, leading to clearer skies and healthier communities.
Reduced noise pollution: The quiet hum of an electric motor, in contrast to the loud noise of a combustion engine, contributes to a more peaceful urban soundscape.
Economic benefits: more value for your money
The advantages of electric cars extend beyond environmental considerations and also make strong economic sense. Here’s how EVs can contribute to your financial well-being:
Operating and maintenance expenses: Electric cars generally have lower operating costs. With fewer moving parts, they require less maintenance, leading to significant long-term savings.
Driving, parking, and charging expenses: Electric car owners may benefit from exemptions from road tax and the London congestion charge, as well as potential advantages such as free or designated parking spaces. Charging at home, work, or public stations is increasingly convenient, and certain energy tariffs even offer reduced rates for EV charging.
Resale value: As the popularity of electric cars grows, their resale value increases, making them a smart long-term investment.
Selecting the appropriate electric vehicle
The electric vehicle market offers a wide array of choices, ranging from compact city cars to spacious SUVs. With a multitude of options available, how do you go about finding the perfect EV for you?
To help you find your ideal electric vehicle, we offer a handy Electric Vehicle Tool that enables you to compare electric vehicles based on efficiency, charging speed, price, and car insurance quotes. Why not try it out for yourself?
Government grants: a valuable aid
The UK government is dedicated to promoting the use of electric cars and provides grants to enhance accessibility.
You can receive a discount of up to 35% off the price of a new electric car, with a maximum cap of £1,500, and up to 75% off the expenses for installing a home charger. It is important to keep in mind that only government-approved vehicles and chargers are eligible for these grants.
Production and environmental impact
It is essential to note that while the production of electric cars requires more energy and emits more than conventional vehicles, the overall lifetime emissions are considerably lower.
Furthermore, as the industry for battery recycling matures, we can anticipate an even greater reduction in environmental impact.
Insurance: decreasing costs
Initially, insuring an electric car was expensive due to the high cost of parts and specialized repairs.
As the market expands and mechanics’ knowledge grows, insurance premiums are starting to decrease. It is always a good idea to compare electric car insurance to ensure you are getting the best possible deal.
Electric vehicles are not merely a passing fad; they represent the future of transportation. With their numerous benefits for both the environment and your finances, there has never been a better time to consider making the switch.
Whether you are drawn to the environmental advantages, the economic savings, or the cutting-edge technology, electric cars offer an enticing package that is difficult to ignore. So, why not embrace the future and join the electric revolution?
Electric vehicles are suitable options for environmentally conscious individuals looking to replace their traditional diesel and petrol-powered cars. EVs operate on electricity and emit no polluting gases, in contrast to conventional petrol and diesel cars.
This article highlights the advantages of electric vehicles and emphasizes the importance of considering one.
The advantages of electric vehicles:
1. Costs for running electric vehicles are lower compared to petrol and diesel-powered cars due to their utilization of electric power for battery charging instead of fossil fuels, resulting in more affordable running expenses.
2. Electric vehicles have lower maintenance costs than internal combustion cars since they contain fewer moving components, reducing the need for servicing and maintenance.
3. Electric vehicles emit zero emissions, reducing their environmental impact, and operate quietly due to the absence of an engine under the hood.
4. Owners of electric vehicles enjoy tax benefits such as lower road tax and registration fees, although government policies and incentives vary by state.
5. Electric vehicles are gearless and can be driven without the need for using brakes, accelerator, or steering wheel, simplifying the driving experience.
6. Charging electric vehicles at home is convenient and can help save time by avoiding the need to visit fuel stations. In case of forgotten charging, fast-charging facilities or battery swapping services can be utilized.
7. Electric vehicles provide a comfortable, noise-free driving experience with convenient cabin space and additional storage options.
8. Electric vehicle owners are not affected by frequent fuel price hikes, offering peace of mind in terms of fuel expenses.
It’s predicted that by 2035, all new cars will be electric, making electric vehicles an essential part of reducing carbon emissions in the transportation sector. Electric vehicles run solely on electricity, and while electric cars are the most common type, they also include trucks, bikes, buses, planes, and boats. There are different types of electric vehicles, including all-electric vehicles, hybrid vehicles, plug-in hybrids, and fuel-cell vehicles, each utilizing different power sources.
Electric vehicle technology has significantly advanced since the production of the first electric car in 1884, constantly improving to produce more efficient and dependable EVs. Electric vehicles are not limited to personal transportation and have become common in various industries, including. Many logistics companies are transitioning their fleets to electric vehicles, including trucks and freight-handling vehicles, to reduce emissions despite initial concerns about cost and practicality.
Public transport
Electric buses are very popular in China, and the adoption of these buses is increasing in Europe. You may have seen green buses on the roads, and there will be more of them in the upcoming years.
The electric transformation is not limited to the vehicles themselves. Currently, 38% of the UK rail network is electrified, and there are plans to expand this initiative.
Additionally, electric trams have become a common sight in major cities over the last ten years.
Aviation
Yes, you read that correctly – electric aircraft. Sounds futuristic, doesn’t it?
Electric aircraft technology is still in its early stages, but progress is being made each year.
However, the potential for electric aircraft is a topic of much debate.
A modern passenger plane requires batteries that weigh 30 times more than its current fuel intake. Some argue that this issue is unsolvable, but progress is being made each year, and some predict that electric planes will be in the skies by 2026.
Boats
Similar to airplanes, electric boats require significant battery power to operate, which poses challenges for longer trips and larger vessels.
That being said, there are existing prototypes, and considerable resources are being dedicated to solving the challenges of electric boats.
How sustainable are electric vehicles?
Around one-fifth of the world’s CO2 emissions come from transportation, and road vehicles are responsible for almost 75% of these pollutants. Therefore, it is crucial to implement more environmentally friendly transportation solutions. Electric vehicles play a crucial role in reducing carbon emissions on a larger scale.
But how?
First and foremost, electric vehicles produce zero emissions, significantly reducing harmful gases and particulate matter in the air. The absence of a combustion process means no fossil fuels are used, which drastically reduces CO2 emissions.
However, the batteries powering electric vehicles need to be charged, and how this electricity is generated affects the sustainability of the vehicles.
While solar panels, wind turbines, and other renewable energy sources produce clean electricity, many parts of the world still rely on burning fossil fuels to generate energy.
It’s important to note that environmental issues related to electric vehicles go beyond just emissions. For instance, the manufacturing of lithium-ion batteries for electric vehicles can be energy-intensive. Research indicates that the energy used to manufacture an electric vehicle accounts for about a third of the vehicle’s lifetime CO2 emissions. Moreover, there is room for improvement in the manufacturing process and battery recycling facilities.
However, a 2018 analysis from the UK government found that battery electric vehicles (BEVs) “had much lower greenhouse gas emissions than automobiles, even when taking conventional into consideration the electricity source and the electricity utilized for battery manufacture.”
So, while there is still much work to be done, considering all factors, the benefits of electric vehicles outweigh the drawbacks, making them the best option for a greener future.
Are electric cars the future of transportation?
In short, yes. Electric vehicles are a top priority for several global powers, including the UK, the USA, and China. As you may have read, green transportation policies are a major focus on political agendas, guided by science.
Furthermore, according to experts at Wood Mckenzie, electric vehicle sales are projected to surpass 45 million annually by 2040, adding 323 million EVs to the world’s stock.
There is no doubt that electric cars reduce emissions and contribute to combating climate change. By 2035, they are expected to surpass traditional petrol and diesel models as the primary new car choice.
However, creating a sustainable future requires efforts in various fields, and sustainable energy sources must power electric vehicles to achieve maximum effectiveness.
The future of electric vehicles is promising. As more drivers switch to electric vehicles and car manufacturers innovate to provide efficient zero-emission vehicles, traditional combustion engines are taking a backseat.
In the aftermath of the economic turmoil caused by the coronavirus, policymakers are preparing recovery packages to support businesses and create jobs. Electrified transportation is likely to be a top contender for stimulus funding due to its potential economic and environmental contributions- both now and in the future.
Before the pandemic, the United States Bureau of Labor Statistics estimated that the shift to electric vehicles would create over 350,000 new jobs by 2030, with a focus on infrastructure. These jobs are now more important than ever. The growing environmental consciousness and concerns regarding air quality serves as strong motivations for investment.
In Los Angeles, the Transportation Electrification Partnership, a coalition of local, regional, and state stakeholders, aims to promote transportation electrification and zero emissions goods movement in preparation for the 2028 Olympic and Paralympic Games. The partnership has requested $150 billion in stimulus funding, emphasizing the economic and public health advantages.
Electric vehicles require charging, and the process of establishing a network raises intricate questions. Our utility and transportation systems were constructed over half a century ago. How should they be adjusted? What level of investment is necessary, and who would be willing to finance it ? How do we determine the placement and configuration of chargers?
This article addresses these issues by examining the factors driving the transition to electric vehicles and the roadmap for achieving this transition.
Given its potential economic and environmental benefits, electrified transportation is likely to be a strong candidate for stimulus funding – both now and in the future.
Growing support
Before the pandemic, declining costs and environmental concerns were already leading to an increasing number of electric vehicles on the roads. The International Council on Clean Transportation reported that the number of electrified fleet vehicles in the United States surpassed two million in 2018, marking a 70 percent increase from the previous year. The International Energy Agency predicts that by 2030, there will be 125 million electric cars on the roads globally. In this trend, vehicles such as transit buses are leading the way, as cities and states are spearheading the shift to electric fleets.
Electric vehicles produce no greenhouse gases, thus wide-scale adoption can reduce emissions. This is particularly significant as the transportation sector accounts for 20 percent of greenhouse gas emissions in the US Emission reduction can also assist cities in achieving social equity and environmental objectives by enhancing air quality in lower-income neighborhoods, which often have high concentrations of vehicle emissions.
In response to public concerns, several US cities, including Los Angeles and New York, have introduced “green new deals” focused on carbon reduction. These programs initially concentrate on electrifying municipal vehicles, including transit and school buses, as well as service and fleet vehicles such as garbage trucks and police vehicles.
Transit agencies are also committing to electric transportation, with nine out of ten of the country’s largest transit agencies studying or planning transitions by 2040. Statewide efforts are also underway. The California Air Resources Board has mandated that all buses purchased in the state after 2030 must be electric, and it’s expected that all municipal buses will be electric by 2040.
Another driving force behind the shift is the cost reductions resulting from technological advancements. A substantial reduction in the cost of transit vehicle batteries has increased accessibility for transit and fleet operators, leading to increased demand for electric buses and fleet vehicles. According to a study by Carnegie Mellon University, battery-electric buses are cost-competitive with liquefied natural gas, compressed natural gas, and hybrid diesel buses. The American Public Transportation Association found that the total cost of ownership of electric buses equals that of diesel buses for vehicles with a utilization of at least 37,000 miles per year. Furthermore, electric buses offer lifecycle-cost advantages over internal-combustion engines because they convert energy into motion more effectively and have fewer moving parts, making them more affordable to power and maintain over time.
Technological advancements
As the current charging infrastructure matures, utilities and transportation agencies continue to develop innovations such as solid-state batteries enabling faster charging, as well as smart systems connecting vehicles and grids to enhance grid reliability and power management.
The industry is exploring various new technologies to enhance energy management, including smart charging systems for fleet facilities that optimize charging patterns and minimize energy costs, peak shaving strategies that use energy storage to reduce demand charges, microgrid technology to promote resilience, and facility power generation to offset power needs while providing resilience. Future technology may even include dynamic wireless charging that allows vehicles to charge on the roadway without slowing down.
Another emerging technology, termed “vehicle-to-grid,” could also generate substantial revenue for transit agencies, creating thousands of dollars of revenue per year. At The Navy Yard in Philadelphia, AECOM is investigating how vehicle-to-grid and other emerging electrification technologies could be integrated into the district’s growing micro-grid.
Preparing for an electric tomorrow
The infrastructure needs of electric vehicles impact energy and transportation networks and warrant thorough consideration. Successful implementation requires attention to three areas: collaboration, energy networks, and charging.
1) Collaboration
Fleet managers and businesses running large vehicle operations might be able to establish a private charging network. However, for individual electric car ownership to become widespread, a comprehensive charging network will be necessary. To achieve this, states, cities, utilities, and transportation agencies must work together. These entities share similar goals in improving communities and providing public health resources. Collaborating, they can develop strategies for transportation electrification, prioritizing public fleet conversion, modernize infrastructure, plan charging infrastructure, set utility policies, rates, and incentives, and upgrade energy distribution capability.
2) Energy networks
The increased adoption of electric vehicles will put additional strain on electric grids, prompting a closer look at their carbon credentials. Analyzing the impacts of electrification on grid assets can help authorities, agencies, and other stakeholders make decisions about charging infrastructure, locations, capital improvements , and future needs based on data.
Managing the energy grid wisely will become increasingly crucial as electric vehicle numbers rise. Utilities are adjusting their policies to speed up electric vehicle adoption by offering subsidies and, in some areas, specific charging rates. They are also working to balance these efforts with the demand on their grid and their ability to support that demand.
On the other hand, electric vehicles could help utilities manage their load better, especially with the increase in intermittent wind and solar energy generation. Major investments have been made in batteries that can store this energy for a few hours. Transportation electrification could also enhance business models by increasing electricity demand. This represents a significant change for an industry that has experienced declining energy needs over the past decade and will encourage investments in modernization and improvements to outdated systems, subsequently reducing operating and maintenance costs.
3) Charging network
As the number of electric car owners grows, there will be a greater need for a comprehensive public charging network. While at-home and workplace charging will play significant roles in enabling infrastructure, the ability to charge on the go is equally important, especially for larger vehicles and along longer routes and highways. Stimulus funding can aid municipalities and utility operators in adding chargers and charger infrastructure to publicly-owned areas such as parking structures or airports, which can, in turn, become sources of new revenue.
Embracing the gas station model can also support this capability. For example, AECOM is supporting Shell Oil Company as it installs fast chargers at each of its gas stations in the Netherlands. These stations will allow drivers to charge their vehicles, pay, and depart, ensuring easy access to “fuel” for their vehicles.
So, how long will this really take?
In the last decade, electric cars have shifted from being novelties to being commonplace. Transit agencies are beginning to make similar transitions. The conversion of transit vehicles will occur gradually, as buses have a useful life of 10 to 15 years, and transit agencies replace around 15 percent of buses annually. Agencies are using this lead-time to plan, particularly considering charging methods, even as they work with utilities to negotiate electricity rates. Many agencies nationwide have committed to being fully electric by 2040.
As with personal cars, fueling is a significant aspect of electric bus and fleet vehicle planning. Transit agencies have various charging options, including catenary wires for rapid charging on-route layovers, slow charging at bus depots, or pads embedded at bus stops that enable charging while passengers board or exit at stops or at bus depots. Selections will vary depending on energy needs related to factors such as usage, energy tariffs, routes, route elevation, and climatic conditions.
While agencies will need to balance charging options with operational needs and costs, those working with utility and private partners will also find opportunities to develop public-private partnership projects that can accelerate adoption.
In summary, establishing a comprehensive charging network is a complex and expensive task, and progress will likely come in stages, driven by fleet vehicle planning. Growing demand is expected to fuel investment, which, in turn, will lead to an improved quality of life for communities across the United States.
Roseville, California
The city of Roseville, California, aims to pave the way for an efficient electrified future. Roseville independently manages its power distribution and transportation system. Through collaboration with AECOM, officials in the city have developed a utility roadmap to predict charging loads and support charging infrastructure planning and development. The city-specific study assessed the increasing demand for electric vehicle charging, potential local utility impacts, and forecasted the number and locations of electrified vehicles. This evaluation aimed to determine business strategies and operational plans to address charging needs.
John F Kennedy International Airport, New York
AECOM is partnering with the New York Power Authority at John F Kennedy International Airport in New York City to provide program management, procurement services, and constructability and design review. The power authority is installing fully operational electric vehicle charging stations and infrastructure at JetBlue Terminal 5 to enable charging while vehicles are parked.
Los Angeles, California
AECOM is leading initiatives with the Los Angeles Department of Transportation (LADOT) to plan and design four bus facility retrofits in anticipation of more than 500 new electric buses that will undergo conversion in 2021. Working closely with LADOT and the Los Angeles Department of Water and Power (LADWP), AECOM is designing charging infrastructure for the buses, coordinating the facilities’ integration, and developing intelligent solutions to reduce fleet infrastructure conversion costs. Each facility expects around eight megawatts of new demand and will require coordination, collaboration, and innovation to build an effective electric transit ecosystem.
As more electric vehicles zip by on city streets and charging stations become more prevalent on roads and in parking garages, it’s easy to envision that we are making progress in combating climate change, one electric car at a time.
However, electric vehicles alone cannot completely solve the issue of transportation pollution and climate change. U of T researchers specializing in transportation and climate caution that as we increase their usage, new challenges will arise that need to be addressed.
“There is no future without electrification. But solely relying on electrification will not lead us to a solution,” says Marianne Hatzopoulou, a professor in U of T’s department of civil and mineral engineering. “We should not fall into the trap of assuming that we have solved the problem by supporting electric vehicles.”
The transition to electric vehicles is already well underway. According to the International Energy Agency, electric cars made up 14 per cent of new sales globally in 2022. In Canada, all-electric vehicles accounted for seven per cent of new car sales at the beginning of 2023.
During the UN Climate Change Conference in 2022, the Accelerating to Zero Coalition committed to making all new cars and vans zero-emission by 2035 in leading markets and by 2040 globally. Canada is currently deliberating regulations that would require automakers to ensure that 60 per cent of new passenger vehicles available for sale in 2030 are zero-emission, with the expectation rising to 100 per cent by 2035.
Daniel Posen, an associate professor at U of T’s department of civil and mineral engineering and the Canada Research Chair in system-scale environmental impacts of energy and transport technologies, acknowledges the importance of electrification. nevertheless, relying solely on electric vehicles to reduce carbon emissions from transportation may not be sufficient, especially if we aim to achieve it in time to prevent a catastrophic two-degree increase in global temperatures.
To comprehend the magnitude of the issue, Posen, along with Heather MacLean, a professor in U of T’s department of civil and mineral engineering, and postdoctoral researcher Alexandre Milovanoff, examined the pace at which the US would need to electrify transportation to meet emission goals that would limit warming to less than two degrees.
By 2050, 90% of all passenger vehicles on the road in the US would need to be electric – 350 million vehicles. Currently, there are approximately one million electric vehicles. Considering the lifespan of cars, this would likely mean that by 2035, every new car sold would have to be electric.
If the US were to achieve this level of EV adoption rapidly, it would need to increase its electricity generation by 1,700 terawatt-hours per year – approximately 40% of its total production in 2021.
Posen notes that there is no similar analysis for Canada, but this country will likely encounter similar challenges in scaling up its electricity production. The challenge is particularly demanding because for EVs to deliver full environmental benefits, the electricity powering them – and their manufacturing process – should be eco-friendly. If not, there is a risk of ending up with an electric vehicle that generates more greenhouse gases than an efficient gasoline-powered car.
“We need to make the transition to decarbonization, but we must carefully select the path we take,” said Teresa Kramarz, an assistant professor at the University of Toronto’s School of the Environment.
For instance, when considering emissions from manufacturing, a study by Posen suggests that an electric vehicle powered by electricity in a coal-dependent area like West Virginia will produce approximately six percent more greenhouse gases over its entire lifespan compared to a gas-powered vehicle of similar size.
“Solar and wind technologies have become much more affordable than they used to be. These technologies are no longer excessively expensive,” noted Posen. “However, there could be challenges in terms of the technical resources required to rapidly expand the green-energy grid .”
Critical Minerals
One of the most complex issues that electric vehicles may bring about is the increased demand for essential minerals such as lithium, manganese, and cobalt.
To meet the rising demand for green energy technologies, including electric vehicles and the renewable energy necessary for their production and operation, the production of lithium and cobalt will need to grow by 500 percent by 2050, according to the World Bank – and this could present challenges. “Historically, mining has had significant environmental impacts,” observed Teresa Kramarz, an assistant professor at the University of Toronto’s School of the Environment and co-director of the Environmental Governance Lab. She raised questions about how these environmental impacts would be addressed and how the social risks associated with extractive industries would be mitigated.
Mining often results in the displacement of communities and contamination of local environments. Many critical minerals are located in lower-income countries where mineral wealth can paradoxically lead to significant problems. For example, cobalt mining in the Democratic Republic of Congo has led to water and soil contamination, lack of transparency and accountability, and increased forced labor, according to Kramarz.
Moreover, all the materials used in solar panels and batteries will eventually need to be recycled and disposed of properly to avoid environmental contamination. These materials include not only critical minerals but also heavy metals such as lead, tin, and cadmium. “We need to transition to a decarbonization path, but we must make this choice very thoughtfully, taking into account the tradeoffs associated with different options,” emphasized Kramarz.
One promising approach, developed by Professor Gisele Azimi, involves changing the way lithium-ion batteries used in electric vehicles are recycled.
Azimi and her team at the Laboratory for Strategic Materials in U of T Engineering have proposed a more sustainable method to extract essential minerals such as lithium, cobalt, nickel, and manganese from lithium-ion batteries that have reached the end of their useful lifespan. “These batteries still contain a high concentration of elements of interest,” said Azimi.
Recycling can not only provide these materials at a lower cost but also reduce the need for mining raw ore, which is associated with the environmental problems highlighted by Kramarz. “We truly believe in the advantages of this process,” said Azimi.
The Air We Breathe
Electric vehicles also offer the promise of reducing ground-level pollution, which directly affects air quality. Pollutants like nitrogen oxide and fine particulate matter, commonly emitted by cars, cause 15,300 premature deaths in Canada annually, with 3,000 of those occurring in the Greater Toronto and Hamilton Area alone, according to Health Canada. In a study, Hatzopoulou found that if all cars and SUVs in the region were electric, there would be 313 fewer deaths each year, resulting in a total social benefit of $2.4 billion.
However, electric vehicles still contribute to ground-level pollution in the form of airborne particulates. These particulates originate from the abrasion of brake pads and rotors and the wear of tires on roads, explained Matthew Adams, an associate professor in the department of geography, geomatics, and environment at the University of Toronto Mississauga. “Electric vehicles will eliminate tailpipe emissions completely. Undoubtedly, yes. But they will not eliminate all emissions,” Adams stated.
“It’s crucial for people to recognize, from the standpoint of community health, that electric vehicles will not completely eliminate the generation of these particulates. The extent of reduction remains uncertain.” For example, the lower operating costs of electric vehicles may lead to more significant vehicles being purchased and driven more, resulting in even greater particulate pollution.
Adams and his colleagues at the University of Toronto are collaborating on a study with the US-based Health Effects Institute to gain a better understanding of electric vehicle particulate pollution.
The Problem with Trucks
Converting delivery and long-haul trucks to zero-emission vehicles presents an even more challenging problem. While delivery trucks make up only 15 percent of the total traffic in the Toronto and Hamilton region, they contribute 50 to 70 percent of the pollutants in the air we breathe, according to Hatzopoulou.
Electrifying long-haul commercial trucks will pose significant challenges, according to the expert. One difficulty is the high initial cost of replacing a commercial fleet. Additionally, the limited range of electric vehicles presents a challenge. Long charging times can also impact scheduling.
Rather than relying solely on electrification, the expert suggests that redesigning the delivery process could have a more immediate impact. She questions the necessity of having a truck delivery constantly circulating in the neighborhood. Planning distribution centers and routes in a way that allows for the ” last mile” of deliveries to be made by bicycle is one potential solution.
Additionally, the expectation for same- or next-day delivery may need to change to facilitate the consolidation of deliveries. According to the expert, it’s essential to rethink the delivery of goods in large metropolitan areas alongside technological advancements.
All the researchers interviewed for this article agree that electrification is essential for reducing greenhouse gas emissions. However, there are other steps that could be simpler, more cost-effective, and equally impactful. For instance, choosing to take the bus could result in a low-emissions trip with a carbon footprint almost as favorable as the newest electric vehicle.
In Ontario, driving a kilometer in an electric car generates 15 grams of emissions from the electricity used, which is significantly lower than the 250 grams produced by a gas-powered car. Alternatively, taking public transportation results in emissions of just under 20 grams per kilometer per person due to ridership. The expert emphasizes that even traditional diesel buses remain competitive in terms of emissions because of their higher ridership.
Making cities denser, creating mixed-use neighborhoods conducive to walking and biking, implementing downtown congestion charges, and enhancing public transportation are strategies that could reduce traffic-related emissions by 25%, as per the Intergovernmental Panel on Climate Change.
According to an associate professor in the department of human geography at U of T Scarborough, transitioning to electric cars without addressing other aspects of the mobility system may exacerbate inefficiencies. He emphasizes that car-based mobility systems do not scale well in larger cities, occupying excessive space and impeding the provision of a high quality of life for residents.
Despite the push for electric vehicle (EV) adoption, there are signs of cooling demand in critical markets, prompting concerns about the immediate impact on addressing climate change through car purchases. Governments are facing pressure to expedite decarbonization, with ambitious targets for EV sales, but industry representatives view these targets as overly aggressive, especially for commercial vehicles.
Moving too quickly towards EVs could have repercussions for automakers struggling to profit from these vehicles and consumers facing challenges such as insufficient charging infrastructure, limited selection, range anxiety, and higher costs.
Regulators should consider the unintended consequences of an abrupt shift to EVs, especially for industries beyond transportation. For example, a significant shift to EVs could impact the petroleum refining industry, potentially creating challenges for consumer and industrial product manufacturers that depend on petroleum-derived inputs and applications.
Despite the growing consensus on the need for government intervention to address climate change, it’s important to acknowledge the significant contribution of passenger vehicles and commercial trucks to greenhouse gas emissions.
These are the kinds of inquiries that the upcoming Special Meeting on Global Collaboration, Growth and Energy for Development organized by the World Economic Forum in Riyadh this month aims to address.
It is evident that fossil fuels are an essential resource required to meet both current demand and facilitate a seamless transition to an era where low-carbon energy is widespread. Implementing changes too rapidly could have an unintentionally devastating chain reaction, yet taking no action impacts future generations and postpones a sustainable planet.
Innovations in the energy sector
Players in the oil and gas industry, including numerous crude oil refineries worldwide, are aware that the energy transition is underway. Since refiners will rely heavily on fuel demand for transportation and the oil that powers them for years to come, we should not exclude oil companies from having a significant role in the decision-making process. In fact, their presence becomes even more crucial. These organizations wield considerable influence on the global economy as providers of goods, services, emerging green technology, and employment opportunities. They also possess the best technical expertise and capabilities to overcome the challenges of the energy transition.
Innovation is on the horizon but will require time to mature. For instance, companies are developing bio-based alternatives to petroleum products, but such solutions are still a long way from reaching significant scale. Many of these alternatives will need more time, investment, innovation, and widespread support to come to fruition.
Another example of the complexity associated with the energy transition is the shift to bio-based materials, which could potentially reduce the reliance on petroleum-based products and mitigate the impact of declining gasoline and diesel demand. Again, it is a promising concept that requires time and resources to become a viable solution.
Acknowledging that only a few limited facilities currently produce bio-based plastics on an industrial scale, there are hardly any companies presently operating at a scale comparable to those underpinned by petroleum. When significant scale is achieved, key conflicts must be taken into account. While contributing to carbon emission reduction, these bio-based materials are derived from crops that people consume, such as corn, soybeans, and sugar tested, with current technology, the industry cannot manufacture essential items like medicines, plastics, and other materials that society depends on without competing with food, driving up food costs. Elevated food costs and thereby potential scarcity have the greatest impact on the economically disadvantaged.
Ensuring energy security
As mentioned earlier, another consideration for rapid energy transition mandates are the repercussions of escalating costs and volume throughout an energy system that has evolved over 150 years. Present grids are not designed to accommodate the technological advancements driving electric vehicle (EV) adoption. Simultaneously, consumers are demand stimulating for AI-enabled smartphone and computing technologies.
Both EVs and AI are instigating significant changes in power generation and electricity transmission and distribution. These changes necessitate new investments and innovations that demand a return commensurate with the associated risks. Making these investments will likely lead to higher energy costs in developed markets and, given the interconnected nature of the global energy system, could have implications worldwide.
This is not the time to retreat from these challenges. We must have faith that global leaders committed to accelerating the energy transition not only possess the urgency to confront the challenge, but also the foresight to ensure that the transition is economically and socially sustainable.
With the imminent end of the sale of new petrol and diesel cars and vans in the UK by 2030, the race to transition to electric vehicles (EVs) is underway. This new automotive ecosystem continues to bring a plethora of new technology providers, alongside substantial and ongoing changes to road infrastructure.
Here, we examine the current status of the market, key hurdles for the sector, and delve into how standards are playing a pivotal role in supporting the entire EV infrastructure.
What is the status of electric vehicles in the UK today?
In 2022, over 260,000 battery electric vehicles (BEVs) were sold in the UK, comprising 16.6% of all sales and trailing only behind petrol models. Additionally, hybrid cars accounted for 11.6% of sales and plug-in hybrids 6.3%.
This trend has also permeated the second-hand market: a record 71,071 used BEVs were sold, marking a 37.5% increase from 2021. Sales of used hybrids captured by 8.6% and plug-in hybrids by 3.6%.
Globally, the International Energy Agency (IEA) reports that there were 16.1 million electric vehicles on the roads in 2021 – triple the number from three years earlier. Nevertheless, it emphasizes that more effort is needed for the world to stay on course for achieving net zero emissions by 2050. So, what are the primary barriers, and how are they being addressed?
1) Infrastructure for recharging
As per a survey by AA in 2022, apart from cost, the main obstacle to buying an electric vehicle is the lack of rapid charging stations on highways. Fortunately, the situation is getting better. In February 2023, there were nearly 39,000 public charging points in the UK at over 23,000 locations, compared to just over 8,000 traditional fuel stations. Additionally, there were approximately 400,000 home and workplace charging points, some of which are open to the public.
2) Concerns about limited driving range
This refers to the worry experienced by drivers that their electric vehicle might not have enough power to complete a journey. However, given that 99% of car trips in England are under 100 miles, most drivers will find that EVs meet their needs. There’s also positive news for drivers who frequently take longer trips. The battery capacity of new EV models is constantly increasing, with ranges of 300 or even 400 miles on a single charge now being common.
3) Accessibility issues
Despite some advancements, accessibility remains a significant barrier to widespread adoption of EVs. Cost is a major hurdle for much of the population, and there are also challenges that other potential EV drivers face. For instance, the disability charity, Motability, has highlighted that from inadequate signage to unsuitable parking facilities, disabled EV users face numerous obstacles when it comes to public charging facilities. BSI has published PAS 1899:2022 Electric vehicles – Accessible charging – Specification to improve charging point design for drivers with disabilities. It’s available for free download.
4) Availability of vehicle charging points near residences
Not every potential EV owner has suitable off-street parking for installing a home charging point, especially in urban areas. Local councils may be slow to respond to requests for on-street charging points, or they may lack the funds to invest in the infrastructure Unfortunately, there’s unlikely to be a quick solution for EV owners without off-street parking. Even though the government has introduced funding programs to enhance EV charging infrastructure (such as integrating charging points into lampposts and bollards), progress is slow.
5) Cost of electricity
If you fill up your car with petrol, you would expect to cover the cost yourself. However, with the increase in energy prices, some drivers are worried about paying the bill. According to a 2022 AA survey, 63% of respondents said that rising energy costs have discouraged them from purchasing an EV. However, this might be indicative of a lack of understanding about the actual costs of fueling different types of vehicles. Currently, a full charge is relatively inexpensive, even considering the rise in energy costs. Charging a small car at home can cost as little as 3.4p per mile, according to Which? additionally, as of November 2022, approximately 11% of public charging points were free, including many at supermarkets, workplaces, and in parking lots.
6) Challenges with charging vehicles at stations
There are discrepancies in charging point facilities that create confusion. For instance, there is variation in charging speed. A slow charge point (3 kW) can charge a vehicle in about 6-12 hours, depending on its battery size. A fast charge point (7 kW or 22 kW) can do so in 4-5 hours, a rapid charge point (43-50 kW) in about one hour, while ultra-rapid charge points (100+ kW) take 20-30 minutes. Another source of confusion is the connection cables, with drivers sometimes discovering that charge points do not have the right one for their vehicle.
Electric vehicle prices are dropping as car dealerships have more models in stock while consumer interest declines. This results in some EV prices coming close to those of gas-powered cars after factoring in federal tax credits.
In May, the average price of a new EV was $56,648, which is about 15% lower than two years ago when it was $65,000, according to Kelley Blue Book. Similarly, used EV prices fell to $28,767 last month, marking a 42% decline from $40,783 a year earlier, as reported by iSeeCars.
One of the factors contributing to the decline in prices is the plateauing of EV sales in the past year, as per Jenni Newman, the editor-in-chief of Cars.com. Despite this, the prices of EVs still tend to be higher than those of gas-powered cars, although this gap is narrowing as dealers reduce prices.
Jenni Newman mentioned, “We’re seeing inventory build up, both for new and used EVs, meaning there are deals available.”
While a record 1.2 million EVs were sold in the US last year, experts anticipate that 2024’s sales will remain at a similar level according to Cox data.
Federal tax credits of up to $7,500 for new EVs and up to $4,000 for qualifying used EVs are helping persuade some Americans to choose electric. With these credits, EV prices are even closer to those of gas-powered cars, with new gas-powered models selling for an average price of about $45,000, as noted by Newman.
Dealership inventory
Three years ago, there were limited EVs available for sale as automakers grappled with a shortage of semiconductor chips. However, once these supply chain issues disappeared, automakers increased their production to meet the growing demand for EVs in the US
Presently, dealerships have around 117 EVs available on their lots for an average 45-day supply, compared to 78 gas-powered vehicles and 54 hybrids, based on data from CarGurus.
The auto industry is heavily investing in EVs, with automakers spending billions of dollars to restructure their factories for producing electric vehicles. As the options for EVs expand, automakers are resorting to price reductions to entice customers into buying these eco-friendly vehicles.
Over its lifetime, an EV emits 50% less CO2 compared to a gas-powered vehicle, while a hybrid reduces these emissions by 25%, based on data from the National Renewable Energy Laboratory. If consumers choose hybrids over EVs, it would take longer to decarbonize the nation’s fleet of gas automobiles.
Prices are dropping at a time when Americans seem to be losing interest in EVs. According to a survey by consulting firm McKinsey, nearly half of US drivers who bought an EV intend to switch back to a gas-powered vehicle.
Another survey by AAA found declining interest in purchasing electric vehicles, with only 18% of US adults indicating they are likely to buy an EV, down from 23% last year. The survey concluded that consumers’ main concerns are the high costs of EVs, limited charging infrastructure, and range anxiety.
Newman highlighted that the scarcity of charging locations is still a major concern for EV drivers, but automakers and local governments have initiated programs to increase the number of charging stations.
Traditionally, new technology is expensive initially and becomes more affordable over time. This is one of the reasons why being an early adopter of new and exciting products is risky, as you pay more to be among the first to own the latest gadget, while those who come later are likely to get a better deal.
When electric cars first entered the market, they were typical examples of new technology with a higher price tag, surpassing that of comparable gas-powered cars.
However, the outcomes have been diverse in recent times, with some electric cars becoming pricier while others becoming more affordable.
Tesla, for instance, raised prices seemingly haphazardly through 2022 and early 2023, but later in 2023, the automaker implemented significant price reductions on some models to stimulate waning demand.
In 2022, EV startup Rivian made headlines by announcing a price hike across their range, including vehicles customers had already ordered. However, a few days later, the company reversed course and confirmed that agreed-upon pricing for existing orders would be honored.
Chevrolet, Hyundai, and Nissan have lowered prices on entry-level EV models over the past few years. For instance, the base 2023 Chevy Bolt now costs approximately $10,000 less than the 2017 Bolt did when it was launched.
Furthermore, the Hyundai Kona EV subcompact crossover saw a reduction in price, mainly to remain competitive as newer and more advanced Hyundai EVs joined the lineup.
It is important to note that certain electric vehicle models saw price reductions during a summer when new car inventory reached record lows. This not only reduced the availability of sales and incentives but also prompted dealers nationwide to add “market adjustment” surcharges to maximize profits.
Although adding market adjustment surcharges is common practice for high-profile, limited edition cars, it is not something most shoppers would expect when purchasing a car like a Subaru Outback. For example, while a newcomer like Rivian tried to raise prices despite being relatively new , buyers of established models like the Chevy Bolt are enjoying lower prices than ever before.
The unconventional behavior of the electric car market raises the question: why are electric cars still so expensive? The simple answer is that batteries, the most significant component of an EV, are expensive.
The cost of EV batteries has dropped by an average of 80% over the last decade. However, while it was predicted that electric cars would become cheaper as batteries did, the opposite has been true for most models. Despite the plummeting cost of batteries, new electric car prices have increased by 80%.
Even when battery technology becomes more affordable, the continuous investment required to improve these batteries and the complexity of improving an EV’s battery present ongoing challenges. Additionally, setbacks such as the pandemic-induced semiconductor chip shortage and rare mineral shortage have further increased the price of batteries.
Furthermore, not only do car buyers want batteries with longer range and faster charging capabilities, but they also expect the batteries to deliver more power without infringing on passenger space or cargo capacity. This constant demand for improvement adds to the complexity of producing affordable EVs.
In addition to expensive batteries, luxury and performance are also contributing factors to electric cars’ high prices. As mainstream automakers and luxury automakers introduce more electric models, the pricing tends to be competitive within each category. Luxury automakers, in particular, are capitalizing on the ability to charge higher prices for their EVs by marketing superior performance, upscale design, and features.
Moreover, all-electric automakers like Tesla and Rivian have the ability to charge premium prices for their high-performance luxury EVs. This is exemplified by Rivian’s inclination to follow in Tesla’s footsteps by implementing price hikes outside of regular model year changes. Tesla has also adjusted its prices several times to optimize demand for higher-priced models and enable its entry-level models to qualify for incentives.
Many of these car manufacturers do not offer gas models for direct comparison, and as they differ significantly from traditional automakers, it is challenging to determine their competition.
The average cost of an electric vehicle in mid-2023 was roughly $12,000 higher than that of a gas-powered vehicle. While this price difference is notable, it’s important to note that gas cars are also expensive. Various factors contribute to this, with the primary one in 2023 being supply and demand. However, experts anticipate that by the end of 2023, this price gap may decrease or potentially disappear.
Some automakers, such as Tesla, have a history of experiencing significant delays between ordering and receiving a new vehicle due to the high demand in this segment compared to the supply, resulting in seemingly arbitrary price increases.
This issue isn’t exclusive to Tesla. In 2022, even Kia Tellurides and Hyundai Palisades were extremely difficult to purchase, and in 2023, shortages of certain desirable models persist.
However, until the cost of gas-powered cars decreases, it is unlikely that overall EV prices will drop significantly.
Electric cars have never been more affordable. Is it the right time to invest in an EV?
An increase in models, competition, and surplus stock has created a buyer’s market for electric vehicles.
Unprecedented discounts have made electric cars more accessible than ever as automakers compete for market share.
Low prices are also leading to great deals in the used car market for those who are unable to purchase a new electric vehicle.
More affordable than ever before
Leading the changes in the EV industry are price reductions across various segments of the market.
The GWM Ora hatchback is now the most affordable EV in Australia, priced at $35,990 following a price drop of approximately $4,000.
The competing MG4 (from $39,990) has also seen a significant reduction in price as part of the brand’s repositioning of its electric models aimed at budget-conscious consumers.
Peugeot recently cut the price of its 2023 e-2008 by around $26,000 (a 40% reduction), while Lotus lowered the cost of its Eletre SUV by up to $49,000, now priced at $189,990 before on-road costs.
Polestar, Audi, Renault, and even market leader Tesla have also made widespread discounts and price adjustments.
At the beginning of last year, the base model of the popular Model Y SUV from Tesla was priced at $69,300, and it is now available for $55,900 following another recent price reduction.
Despite years of inflation, Teslas are now more affordable than ever in Australia.
In response to the backlash regarding price reductions, Elon Musk, the CEO of Tesla, stated on X that “Tesla prices must be adjusted frequently to align with production and demand.”
Mike Costello, corporate affairs manager at Cox Automotive, a provider of vehicle data solutions and operator of Manheim auctions, mentions that “demand is not as high as it was during the peak of the market” in 2022 and 2023.
“Growth has increased this year, but at a slower pace,” he says. “While early adopters have embraced the technology, it’s proving to be challenging to attract the mass market to adopt EVs.”
Reducing prices is a simple way to stimulate demand, which, according to Costello, is at the core of these recent reductions.
“You wouldn’t reduce prices if the market was healthy.”
More models on the horizon
The major uncertainty is whether prices will continue to decline, as the upcoming influx of new brands competing for a share of the EV market appears poised to intensify competition.
Leapmotor, Lynk & Co, Zeekr, Xpeng, and Geely are among more than 10 brands planning to enter the Australian market, joining the already 60-plus car brands.
Electric cars lined up beside a lake surrounded by steep mountains in Eidfjord, Norway
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In addition to these, companies such as BYD and Chery have announced their ambitious expansion plans. BYD, which exclusively sells EVs and plug-in hybrids, has set a goal to surpass Toyota and become Australia’s top-selling car brand by 2028.
Ross Booth, the general manager of valuation giant Redbook, believes there is only one way to achieve such an extraordinary feat: by providing better value.
“You need to distinguish yourself and establish a brand by creating a quality product at a competitive price that meets the demands of the market,” he explains.
“The Australian market has always prioritized value for money.”
Australia has consistently attracted new brands as it is considered a favorable testing ground.
The growing appeal of a medium-sized developed market in Australia is becoming more apparent.
Costello suggests that due to stricter trade barriers in the US and Europe, Chinese brands may view Australia as an ideal target because it lacks a domestic manufacturing industry to protect.
According to Costello, the increasing presence of Chinese brands also signifies the challenges faced by existing brands, with some expected to exit the market.
Achieving lower emissions is an additional motivation for car manufacturers to sell more electric vehicles (EVs) due to mandated CO2 targets, which require a 60% reduction in new vehicle emissions by the end of the decade.
The government recently passed the new vehicle efficiency (NVES) standard, which will be effective in 2025, compelling carmakers to minimize the carbon dioxide emissions from their vehicles.
While hybrids will have a significant role, the NVES requirements will increasingly necessitate zero-emission vehicles, such as EVs, as a way to offset potential penalties for vehicles that exceed the CO2 limits.
Industry experts concur that the recent developments in the EV market have created an opportune time for purchasing a vehicle.
Costello states, “There has never been a better time to adopt this technology. Buyers currently have the upper hand. There is an ample supply of most vehicles, prices have significantly decreased, and there is a wider variety in the market.”
The question remains whether EV prices will decrease further highly in the near future. Considering the influx of competition and the development of smaller, more affordable models, a continued decline seems likely.
However, adverse factors such as exchange rates could also exert negative influence.
Nevertheless, for individuals open to considering pre-owned vehicles, the availability of competitively priced EVs extends to the used car market.
The rapid developments in the EV market, reduced prices of new cars, government incentives, and reluctance toward new technology have led to a drop in the prices of pre-owned EVs.
Most EV buyers still prefer purchasing new vehicles over compromising with a used one.
“Currently, there is not much demand for used EVs,” remarks Booth.
Booth notes that hybrids have become particularly popular in the pre-owned car market, while the demand for electric cars is relatively low, with Tesla being the exception.
“People are still interested in purchasing a Tesla,” says Booth. “Tesla continues to maintain high residual values for EVs due to the demand in the pre-owned market.”
Nevertheless, Booth suggests that the pre-owned EV market is now a favorable place for prospective buyers.
“If you can find an EV that meets your range and charging time requirements within your budget, there are many good deals available.”
On average, pre-owned EVs are now selling for thousands of dollars less than comparable gasoline-powered vehicles.
In February, the average prices for pre-owned electric vehicles fell below those of pre-owned gasoline-powered vehicles for the first time, and the price difference continues to widen as consumers reject the previous “premium” associated with EVs.
The decline over the past year has been substantial. In June 2023, the average prices of pre-owned EVs were over 25% higher than those of pre-owned gasoline-powered cars, but by May, the average price of pre-owned EVs was 8% lower than that of pre-owned gasoline-powered cars in the US. In dollar terms, the gap increased from $265 in February to $2,657 in May, according to an analysis of 2.2 million one to five-year-old used cars conducted by iSeeCars. During the past year, the prices of pre-owned gasoline-powered vehicles decreased by 3-7%, while the prices of pre-owned EVs declined by 30-39%.
iSeeCars executive analyst Karl Brauer noted, “It’s evident that used car shoppers are no longer willing to pay more for electric vehicles.” According to an iSeeCars report published last week, electric power is now viewed negatively by consumers, making EVs “less desirable” and consequently less valuable than traditional cars.
The divide between pre-owned luxury brands and electric vehicles (EVs) has also widened. According to iSeeCars, the prices of used BMWs now surpass those of comparable Tesla EVs by a significant margin. In May 2023, a Tesla Model 3 cost $2,635 more than a BMW 3 Series, but by May of this year, it was priced over $4,800 less than the 3 Series.
There is currently a higher number of used EVs being sold, partly due to the expanding market. In 2022, 176,918 used EVs were bought in the US, and this number increased to over 45,000 in May alone. The used car market is significantly larger than the new car market, and used vehicle values tend to depreciate rapidly.
On average, a one-year-old used car is priced at 80% of the same new car. As more EVs enter the used market at lower prices, it becomes more accessible to a broader range of potential first-time EV owners.
There are factors contributing to the likely decline in EV premiums in the used market despite recent shifts in consumer perception. These include continual advancements in battery technology, leading to increased range in new models, as well as consumer concerns about battery degradation over time.
Newer models come with extended ranges, improved battery life with charging temperature control, and significant value tied to the battery, which makes up 30-50% of an EV’s worth. However, this is balanced by the lower overall ownership costs of EVs, covering fuel to maintenance, and the possibility of federal tax credits for owners of used EVs.
Tesla CEO Elon Musk’s decision to initiate a price war in 2023, along with decreasing demand, has played a key role in the recent drop in used EV prices. This move led to price cuts on various Tesla models, with continued reductions in 2024. Scott Case, CEO of Recurrent, noted that declining used Tesla prices led to price drops in new Tesla models, followed by decreases in prices of used EV rivals.
In January, Hertz adjusted its aggressive EV strategy by selling 20,000 EVs at Hertz Car Sales locations, roughly one-third of its EV fleet, with used Teslas priced at an average of $25,000 without negotiation nationwide.
The decreasing demand for EVs and infrastructure limitations have many auto companies to scale back on aggressive EV rollouts and focus more on promoting hybrid models, which are experiencing a surge. General Motors reduced its expected EV sales and production from 200,000–300,000 to 200,000- 250,000. EVs accounted for less than 3% of GM’s Q1 sales. Ford encountered losses from its Model E electric vehicle launch, combined hybrid and EV sales increased in May. Ford also decided to rescind a program that required dealers to make substantial investments in EV infrastructure during the initial EV boom.
Charging infrastructure is still in its early stages, and the lack of it makes switching to electric vehicles a challenge for many Americans. However, access to EV chargers is expanding, with over 64,000 publicly accessible electric vehicle charging stations in the US, totaling over 176,000 EV charging ports, as reported by the Department of Energy. EV charging infrastructure has increased by 29% since the Inflation Reduction Act of 2022, which included tax incentives for EV adoption. There are around 145,000 gas stations in the US
According to a Pew Research analysis using Department of Energy data, approximately 60% of Americans now live within two miles of a public charger, yet only 7% of those within the vicinity would consider buying an EV. The majority of EV charging still occurs at home, but there are also underserved rural areas.
A Gallup poll in April revealed a 3% annual increase in EV ownership among Americans but an equivalent decrease in serious interest in buying an EV, decreasing from 12% to 9%. Overall, 35% of Americans indicated they might consider purchasing an EV in the future, down from 43% the previous year.
As the electric vehicle industry copes with multiple notable setbacks, several startups that have emerged in recent years underestimated their capital needs by billions of dollars, according to industry insiders.
Several companies attempting to launch products or go public, especially through Special Purpose Acquisition Companies (SPACs), are encountering challenges. According to AutoForecast Solutions, at least 30 electric vehicle (EV) companies have either halted operations, gone silent, or faced the risk of bankruptcy in the past decade.
Mark Wakefield, managing director at AlixPartners, mentioned that apart from Chinese automakers, Tesla was the first to emerge in fifty years. Rivian and Lucid are considered the next two prominent Western automakers, but both have used up $10 billion. This situation contrasts with smaller startups that believe that raising $1 billion or $2 billion is sufficient.
The EV market has thrived due to government support for climate goals and has attracted Wall Street’s attention. Tesla’s success with investors led many skeptics to label it a “cult stock.”
In 2023, Tesla dominated over 50% of the US EV market, sold more than 650,000 vehicles in the country, and generated over $82 billion in global vehicle sales.
Despite slower-than-expected adoption, EVs accounted for 8% of US new car sales that year. It is anticipated that EVs will represent 46% of new vehicle sales by 2030, approximately 8 million units.
Pavel Molchanov, managing director at Raymond James, noted that startups are attracted to extensive addressable markets. However, the reality is that the automotive industry is highly capital-intensive and competitive, with less attractive capital returns.
Even well-funded companies from other industries that planned to enter the automotive sector have discontinued their projects. Apple and British appliance maker Dyson both halted their car projects.
In many ways, the current EV industry resembles the early days of the American auto industry. At the beginning of the 20th century, there were numerous small automakers and parts firms in Detroit and the surrounding region. However, after a decade of consolidation and numerous failures, only a handful of US companies such as Ford, GM, and Chrysler (now part of Stellantis) remained.
John Paul MacDuffie, a professor at the University of Pennsylvania’s Wharton School of Business, suggested that successful EV companies, like Tesla and China’s BYD, are highly vertically integrated, similar to GM during its rise to the top.
MacDuffie also pointed out that despite the current influx of new firms in the EV industry, historical patterns indicate that it may not be sustainable in the long run.
The cost of certain electric vehicles (EVs) in Australia has dropped by up to $20,000 “almost instantly” due to heightened competition as manufacturers compete for every customer. With government incentives and growing concerns about climate change, EVs are now more popular than ever.
In 2023, the number of purchases more than doubled compared to 2022, continuing the trend of doubling sales every year since 2020 in Australia. Despite the increased demand, automotive expert Paul Maric told Yahoo Finance that prices may still have further to fall.
According to Maric, increased competition among manufacturers is driving the price war. He mentioned that Chinese brands introducing more affordable electric vehicles have been a significant factor.
The prices of electric vehicles vary widely based on the brand. For example, the GWM Ora Standard is priced at $35,990, while the Porsche Taycan Turbo S will cost you $345,800.
Some mid-range electric cars have experienced significant price reductions. The Nissan Leaf dropped from $50,990 to $39,990, the Polestar 2 2024 Long Range Single Motor fell from $71,400 to $58,990, and the Tesla Model Y decreased from $72,000 to $55,000.
Polestar seems to be the most impacted by price drops, with four out of its eight cars available in Australia experiencing decreases between $10,000 and $15,000, as reported by Gizmodo.
Maric also mentioned that Tesla has been a surprising participant in the price reduction trend. He pointed out that the Model Y, for instance, saw a significant drop from $72,000 to $55,000.
According to Maric, Tesla has had an excess of vehicles in Australia with no buyers, leading to substantial price reductions in order to move the stock.
The CarExpert.com founder suggested that Australians might be tempted to wait for better deals as the price war continues. However, he also stated that it’s a bit of a gamble and buyers should be prepared to live with their decision.
Maric explained that it might be best to purchase an EV now, as they are currently reasonably priced. However, he cautioned that buyers should be comfortable with the possibility of depreciated value at the end of the purchase or lease term.
Maric also recommended that EV owners consider upgrading their vehicles every two to three years to take advantage of new car and battery warranties, as well as updated technology.
Additionally, Maric highlighted that the second-hand EV market can be harsh, with electric vehicles selling for a fraction of their original purchase prices. He emphasized that EVs are especially susceptible to depreciation.
For regular used cars, sales data from 2023 show a 14.1 percent depreciation between two to four years after their manufacture date, whereas for EVs, the depreciation during the same period is 42.4 percent.
Maric attributed this steep depreciation to owners attempting to sell their cars quickly to avoid being stuck with an expensive asset they can’t sell.
Lastly, it was noted that electric vehicle sales more than doubled in 2023, accounting for 7.2 percent of all new cars sold.
The move towards electric vehicles (EVs) is imminent, regardless of our preparedness, and Australians are on the brink of experiencing significant changes in the realm of automobiles.
The Australian government recently introduced its proposed New Vehicle Efficiency Standards (NVES) and aims to compel car manufacturers to supply more fuel-efficient vehicles by January 1, 2025, with the goal of hastening its efforts to reduce carbon emissions by 369 million tonnes by 2050.
As per the government’s strategy, by 2028, Australian drivers have the potential to save $1,000 annually on fuel and over $17,000 over the lifespan of the vehicle.
The sale of EVs more than doubled in 2023. According to data from the Federal Chamber of Automotive Industries (FCAI), electric vehicles accounted for 7.2% of total new-car sales, a marked increase from 3.1% in 2022.
Alborz Fallah, the founder of CarExpert, informed Yahoo Finance that “Demand for electric cars in Australia is at an all-time high and, if we look back to last year, 87,217 EVs were sold – more than double that of 2022 (33,410).”
He added, “Although this represents just over 7% of all cars sold in 2023 (a total of 1,216,780), the growth in electric vehicle sales is likely to continue as more and more affordable models reach our market.”
What’s fueling the growth of EVs?
The increasing interest in EVs in Australia is driven by various factors. While one might assume that soaring fuel prices are the primary driver, there are myriad other considerations.
Fallah mentioned, “With the significant decrease in the price of EVs – for instance, the fully electric MG4 starting at around $40,000, and offering excellent safety, driving dynamics, and over 400km of range – more buyers are realizing that they can opt for electric vehicles without incurring substantial costs.”
He also emphasized the impact of government incentives, stating, “There is a higher level of social awareness regarding the environmental impact of internal-combustion-engine (ICE) vehicles than ever before. Many buyers are willing to make a choice that aligns with their moral values.”
However, a spokesperson from the Department of Infrastructure, Transport, Regional Development, Communications, and the Arts (DITRDCA) informed Yahoo Finance that despite this growth, Australia still trails behind other countries in EV sales.
Earlier this month, FCAI chief executive Tony Webber attributed this lag to Australia’s strong preference for utes and SUVs, which made up 78.4% of all new-vehicle sales in 2023.
What impedes Australians from transitioning to EVs?
The adoption of EVs in Australia significantly lags behind other nations, with only 3% of vehicle owners currently utilizing them. Several factors contribute to this slow uptake.
High upfront costs of EVs
Recent research from global data and insights company Pureprofile revealed that close to 39% of Australians were hesitant to purchase an EV due to the substantial initial investment, with almost 65% stating that the rising cost of living was hindering their ability to do so.
While it’s true that the charging and maintenance of an EV are more cost-effective, their purchase price generally exceeds that of petrol and diesel vehicles. However, the Electric Vehicle Council (EVC) noted that there are now numerous models available in Australia for under $45,000.
The EVC also highlighted the incentives available to Australians looking to buy EVs, including the nationwide Electric Car Discount, which provides an exemption from Fringe Benefits Tax for novated leases and company cars.
Most Australian states and territories offer their own set of incentives:
In Queensland, there is a leading rebate of $6,000
Western Australia follows closely with a maximum of $3,500 in rebates available
Tasmania provides $2,000 in rebates for new and used EVs
Canberra residents have access to stamp duty exemptions, a registration discount, and zero-interest loans
In the Northern Territory, incentives include stamp duty and EV registration fee waivers, along with an EV charger grant scheme for owners who purchase and install chargers
Victorian EV owners are now only eligible for a registration discount after the closure of the Zero Emissions Vehicle Subsidy
Unfortunately, there are no available rebate programs for residents of South Australia and New South Wales, as the programs were closed in 2023.
Lack of charging infrastructure
Data from Pureprofile also revealed that 36% of Australians feel that there are insufficient EV charging stations throughout the country.
As of December 2022, the EVC stated that there were 2,392 public charging stations in the country.
Trevor Long, the host of the Two Blokes Talking Electric Cars podcast and an EV owner, highlighted this issue to Yahoo Finance after testing the country’s charging network during a road trip across New South Wales. Long discovered that not only were charging stations scarce, but some of them also did not function.
This is a particularly pressing issue in rural Australia, where individuals often have to travel long distances.
However, the DITRDCA is currently working with the NRMA on a partnership to establish a national EV-charging network, which will serve as a “backbone.” A spokesperson mentioned that there will be 117 electric vehicle charging stations strategically positioned along key highway routes in Australia, with an average distance of 150 kilometres between each station, effectively linking all capital cities. The spokesperson also noted that the new sites will complement the existing and planned EV-charging infrastructure, with a specific focus on addressing known blackspots and prioritizing regional and remote communities.
Range anxiety is a concern for over three-quarters (78%) of Australians, representing the fear of running out of battery power during a journey. This fear is heightened when carrying a heavy load, such as a trailer or a caravan, and traveling long distances.
Electric vehicles (EVs) available in Australia generally have a battery range spanning from 250 to 650 kilometres, with many models capable of traveling over 400 kilometres before requiring a recharge. The EVC stated that this range typically meets the driving needs of numerous regional commuters. However, the organization emphasized the critical importance of public charging infrastructure being readily available along the country’s major road network.
Despite this, Fallah holds a differing perspective, stating that currently, electric vehicles are not well-suited for towing due to the significant reduction in battery range when carrying additional weight. He did note, however, that the emergence of the next generation of solid-state batteries, entering mass production, might alter this situation and make EVs suitable for towing purposes.
Australians considering purchasing an EV have various inquiries, including gaining basic knowledge about the available types of EVs.
There are four main types of EVs:
– Battery electric vehicles (BEVs), also referred to as plug-in or pure EV
– Hybrid electric vehicles (HEVs), operating on a combination of petrol or diesel and battery power
– Plug-in hybrid electric vehicles (PHEVs), similar to HEVs in terms of power source, but differing in the battery’s ability to be recharged using a standard power outlet at home or in a public charging station
– Hydrogen or fuel cell electric vehicles (FCEVs), which convert fuel into energy through an electrochemical reaction with hydrogen and oxygen. However, this technology is still emerging in Australia, and these vehicles are not yet available for everyday use.
With regard to the environmental friendliness of EV batteries, there is widespread belief that EVs are environmentally friendly. Nevertheless, concerns persist about the disposal of batteries in landfills.
Natalie Thompson, EVC senior manager for policy, stated that there has been misinformation about batteries and their recycling, where the challenges of collecting small batteries have been conflated with those related to massive car batteries. She mentioned that the issue of EV batteries ending up in landfills is not prevalent, as the global market for EV battery recycling remains relatively small due to low volumes of EV batteries reaching the “end of life.” This situation is expected to change over the next decade.
Fallah also articulated his viewpoint on this issue, referencing past iterations of EV batteries, particularly the initial first-generation of EVs, which had questionable battery-producing practices. However, he highlighted efforts made by brands like Tesla and BYD to make battery production as environmentally friendly as possible.
He emphasized that the environmental impact of an EV hinges on its longevity and the recycling process. When techniques for better stripping and reusing the rare-earth materials in EV batteries are developed, EVs will have a significantly lower environmental impact.
From traditional automotive manufacturers to emerging electric vehicle companies, a decline in EV demand has presented challenges. Factors such as higher pricing compared to gas vehicles, increased financing costs, and insufficient charging infrastructure have limited the growth of EVs in the US.
However, on the positive side, it is currently a highly favorable time for consumers interested in purchasing or leasing an EV. For instance, according to Kelley Blue Book, new EV prices decreased by 10.8% in January compared to the previous year, and in December, EV transaction prices dropped to $53,611, marking the lowest point in the past 12 months.
CarGurus, an online platform for car shopping, discovered that the length of time electric vehicles (EVs) are available for sale increased compared to the previous year, while the duration for internal combustion engine (ICE) cars decreased. In January, the average listing price for a new EV on the platform decreased by 9.1% year over year to approximately $60,000.
The used car market showed even more significant changes. In January, the average listing price for a used EV dropped by 20.6% to around $38.7K.
These trends indicate that this is an opportune time to shop for EVs before the market stabilizes and prices rise again. Here are some of the top deals we found for new EVs, utilizing incentives available in the New York City metro area and excluding destination charges, which vary by manufacturer and vehicle.
The cost of electric vehicles is poised to become more affordable due to increasing interest in bi-directional charging technology. This technology, also known as vehicle-to-grid (V2G) or vehicle-to-home (V2H) charging, enables EV owners to utilize their vehicle to power their home. By allowing electrical current to flow in both directions, cars can supply power back to the grid or power a home using energy from the EV battery.
A representative from RACV explained that this could transform homes into “the green petrol station of the future.” Essentially, the concept is that your car can function as both a home battery and a mode of transportation.
If you charge the car from a cost-effective source like rooftop solar, a free charger at a local shopping center, or at work, you can use the car’s battery to power your home economically. Jet Charge CEO Tim Washington believes that this dual functionality of EVs could lead to the complete replacement of stationary home batteries.
But what happens when the car is not at home? Most cars are idle in the garage, on the street, or at work most of the time. Considering that the average person drives only about 36 kilometers a day, there is plenty of charge in a 300-kilometer-range EV to use as a home battery.
Furthermore, as Tim Washington pointed out, when you are using energy at home, the car is likely at home as well. In cases when the car is not present, you can still access grid electricity unless you are completely off-grid.
Currently, not all electric vehicles support bi-directional charging, according to a representative from RACV. Only a few models such as the Nissan Leaf and the Mitsubishi Plug-in Hybrid have this capability. However, the spokesperson anticipates that this will change as newer EV models enter the market and the technology matures.
The high cost of bi-directional charges is another obstacle. Priced at around $10,000, they are not inexpensive, but Tim Washington believes that their cost will rapidly decrease. Additionally, it’s important to consider the impact of bi-directional charging on the battery life Although moving electricity back and forth would increase overall usage, Washington stated that the effect on EV batteries, which now have long lifespans, would be negligible.
In the future, another way to capitalize on your car could be to sell electricity back to the grid. Dr. Bjorn Sturmberg, a research leader at ANU, mentioned that EV owners may receive compensation for aiding the grid during peak demand periods. Essentially, when there is high energy demand, such as during hot days when air conditioners are running at full blast, energy providers may reward you for accessing the electricity stored in your vehicle’s battery, ensuring sufficient supply for everyone. Incentives are already being offered to homeowners to allow access to their household batteries, and it’s likely that EVs will be treated similarly.
Study Shows Major Price Drops On Used Electric Vehicles
It seems that almost every week brings forth some troubling statistical evidence highlighting the declining prospects of electric vehicles. For instance, this week, the annual EY Mobility Consumer Index revealed that only 34% of global participants plan to select an EV as their next vehicle, blaming costly battery replacements and insufficient public charging infrastructure as significant barriers.
On a positive note regarding the downturn in the EV market, the prices for new electric vehicles have begun to decrease to counteract the dip in demand, with car manufacturers providing cash incentives ranging from $7,500 to $10,000 this month to assist their dealers in reducing inventory.
However, the decreases in price have been particularly sharp in the used-car segment, where second-hand EVs are currently being sold for 11.4% less than traditional internal combustion vehicles. A year prior, they were fetching prices 12.1% higher than regular cars, trucks, and SUVs. This comes from a pricing trend analysis conducted by the online platform iSeeCars.com, based on more than 1.6 million transactions of used EVs aged 1-5 years in August 2023 and 2024.
The vehicle that has seen the most significant price drop over the past year is the Tesla Model 3, which has undergone an average decline of 24.8% due to an abundance of used models. Additionally, the study indicates that five of the six models experiencing the steepest losses in the past year are electric vehicles. Below is iSeeCars’ list of the 15 used cars with the most significant price drops.
Generally, used vehicle prices have been returning to normal after pandemic-induced supply and demand fluctuations led to significant increases. Nevertheless, iSeeCars’ research shows that pre-owned electric vehicle prices have decreased four times more rapidly than those of hybrid cars and six times more quickly than gasoline-powered used vehicles. Thanks to an average value drop of 25%, used electric vehicles are now selling at a much quicker pace than they were in 2023.
“Used electric cars have decreased from an average of 55.3 days to sell in September 2023 to 38.6 days in the current timeframe,” explains Karl Brauer, an executive analyst at iSeeCars. “This suggests strong demand for used EVs—provided they are priced 8% to 11% lower than hybrid or gasoline vehicles.”
Clearly, the conclusion is that those looking to purchase an affordable electric vehicle can find excellent deals that will save money both initially and in the long term regarding fuel and maintenance costs.
However, it is important to note that not all used car prices are plummeting. Some highly sought-after models, as shown in iSeeCars’ study, are actually increasing in value. This includes the Porsche 718 Cayman, which experienced a 21.4% price rise over the last year, the Volvo S90 (+16.3%), Chevrolet Camaro (+8.4%), BMW 2 Series (+6.6%), and the Mitsubishi Outlander Plug-In Hybrid (+6.4%), among others.
A recent report from iseecars.com indicates that used car prices have slightly declined, with the electric vehicle sector particularly impacted by the Tesla Model 3’s 24.8% depreciation compared to last September. Other entry-level EVs (Bolt, Niro, Leaf), which have recently transitioned to the used car market, have also undergone significant depreciation similar to luxury vehicles like the Maserati Levante and Mercedes-Benz AMG GT during the same timeframe.
While it may be easy to attribute the swift depreciation of electric vehicles to a cooled overall EV market, the rapid advancement of EV technology signifies that even electric cars 2 or 3 years old are no longer cutting-edge. Overall, this translates to a much lower price for buying a late-model electric vehicle, while the used car market overall continues to recover from pricing spikes during the Covid era.
Data from CarGurus indicates that this recovery is inconsistent rather than uniform. In the last month, CarGurus reported a slight increase of just under half a percent in used car prices, likely part of an ongoing general downward trend. While the overall trend is downward, some used vehicles are still appreciating, albeit by minor amounts.
From iseecars.com’s data, the highest year-over-year price increases in the used market have been recorded for the Porsche 718 (21.4%), Volvo S90 (16.3%), and Chevrolet Camaro (8.4%) respectively. The entire market is still gradually finding its way back to a previous normal, but the ongoing shift toward electrification is disrupting the values of outgoing internal combustion engine performance cars, given that the 718 will soon be migrating to a four-cylinder setup. The Camaro is another combustion enthusiast vehicle facing elimination, with widespread rumors of its eventual electric successor.
CarGurus’ monthly review of the limited selection of used cars increasing in value is also noteworthy, with a brand new electric vehicle among the top three. Alongside the 3.4% increase in price for the recently discontinued Chrysler 300 and the 2.2% increase for the updated Toyota Camry, the Honda Prologue has seen its used prices rise by 3.2%. This could potentially indicate scalpers trying to capitalize on unmet demand for a vehicle whose production has not yet caught up. As the market stabilizes, it appears that a vehicle’s circumstances matter as much as the type of propulsion it uses.
As electric vehicle (EV) manufacturers lower prices on new models, the cost of used EVs has dropped to 11% less than that of gasoline vehicles, based on data from iSeeCars.
An analysis of 1.6 million used vehicles (all aged one to five years) sold between August 2023 and 2024 revealed that the Tesla Model 3 experienced the most significant drop in value for any car over the past year, decreasing by 24.8%. Other electric vehicles also saw declines, although they were smaller but noteworthy.
The positive aspect is that the decline in used EV prices is not as severe as it was at the close of last year and the start of this one. This could indicate that we are nearing the end of a prolonged reduction.
Karl Brauer, executive analyst at iSeeCars, stated, “The 25 percent decrease in used electric vehicle prices over the last year is still significantly higher than for gasoline or hybrid cars. However, it’s lower than the 30 to 40 percent drops we observed at the end of 2023 and the first half of 2024, suggesting that average used EV prices may soon stabilize around $25,000.”
In August, the average cost of a used gasoline vehicle was $30,292, while the average price for a used EV was $26,839—an 11.4% difference. In comparison, last year, EVs were priced at 12.1% more than gasoline vehicles.
A decreased market share for battery-electric vehicles in 2025 is expected to complicate the EU’s ability to meet its carbon emission targets, as boosting BEV market share and sales is a crucial strategy for manufacturers to achieve these objectives.
Current data from S&P Global indicates a deteriorating outlook for battery-electric vehicles in the EU. It is now estimated that the share of battery-electric vehicles in 2025 will be 21%, a notable downward adjustment from the previously forecasted 27% in the first half of 2024.
This revision largely stems from changing market dynamics, as the global demand for electric vehicles declines.
A reduced market share for battery-electric vehicles in 2025 will also pose significant challenges in achieving the EU’s carbon emission objectives for that year, primarily as increasing BEV market share and sales are vital avenues for vehicle manufacturers to meet these targets.
Other measures include collaborations between high-emission manufacturers and those with lower emissions, as well as a shift in sales strategies to promote more efficient vehicle options. Additionally, mild-hybrid technology, which utilizes a small battery-powered electric motor to support a traditional diesel or petrol engine, could aid in reaching these targets.
Czech transport minister Martin Kupka remarked on the ACEA website: “Without a specific automotive industrial action plan, we risk lagging behind the US and China.”
“The reality check indicates that the EU must establish a more adaptable framework for automakers to achieve the ambitious CO2 reduction goals. We need to ensure that the industry invests profits into new solutions rather than merely paying fines.”
Sigrid de Vries, the director-general of ACEA, also noted in the press release: “The impending crisis demands immediate action. All signs point to a stagnating EU electric vehicle market at a time when acceleration is crucial. Besides the excessive compliance costs for EU manufacturers in 2025, the success of the overall road transport decarbonization policy is in jeopardy.
“We acknowledge that several European Commissioners have stressed the need for regulatory predictability and stability during their confirmation hearings, but stability alone cannot be an end goal. Manufacturers have invested significantly and will continue to do so. Europe must maintain its focus on the green transition by implementing a functional strategy.”
Higher tariffs imposed by the EU on Chinese electric vehicles are expected to further suppress the battery-electric vehicle market.
Recently, the EU has raised import tariffs on Chinese EV manufacturers such as Geely, BYD, and SAIC. This decision arose amid growing concerns about the Chinese government’s substantial subsidies for these companies, enabling them to offer their models at greatly reduced prices within the EU.
Consequently, this has seriously undermined other European automakers like Volkswagen, Audi, Mercedes-Benz, and BMW.
The EU has now set tariffs of 18.8% on Geely, 17% on BYD, and 35.3% on SAIC.
However, as these tariffs take effect, the prices of these electric vehicles are likely to rise significantly, which could deter sales, particularly as consumers continue to grapple with the cost of living crisis throughout Europe.
This situation is likely to make it even more challenging to meet carbon emission targets, both for 2025 and for the longer term in 2030.
Huawei is distributing samples of its Ascend 910C processor to conduct tests, aiming to address the gap left by Nvidia.
Under US sanctions, Huawei Technologies has initiated the testing of a new AI chip with potential customers in China, as they seek alternatives to high-end Nvidia chips, moving closer to bolstering China’s self-sufficiency in semiconductors despite US restrictions.
Huawei has provided samples of its Ascend 910C processor to major Chinese server companies for testing and setup, as stated by two sources familiar with the matter.
According to one of the sources, a distributor of Huawei AI chips, the upgraded 910C chip is being offered to large Chinese internet firms, which are significant Nvidia customers. Huawei did not respond immediately to a request for comment on Friday.
Huawei has been striving to fill the gap left by Nvidia after the ban on the California-based chip designer from exporting its most advanced GPUs to China.
The Ascend 910B chips, which Huawei has claimed to be comparable to Nvidia’s popular A100 chips, have emerged as a leading alternative in various industries in China.
Huawei’s Ascend solutions were utilized to train approximately half of China’s top large language models last year, as per Huawei’s statement.
Although Huawei has been discreet about its progress in chip advancements, it is evident that the company is establishing a support system for the domestic AI industry.
During the Huawei Connect event, the company unveiled various new solutions and their alignment with its Digitalized Intelligence vision for 2030.
At Huawei Connect Shanghai 2024, the company introduced upgrades to its AI, cloud, and compute capabilities, aligning with the company’s ‘Digitalized Intelligence’ 2030 strategic vision.
Huawei’s Deputy Chairman and Rotating Chairman, Eric Xu, emphasized the importance of envisioning the future of intelligent enterprises and aligning current strategies and actions with that vision during the opening keynote.
As part of its objectives in AI Intelligence and Amplifying Industrial Digitalization and Intelligence, Huawei’s updates aim to assist enterprises in effectively implementing the AI revolution.
With extensive experience in intelligent transformation, Huawei aims to develop products based on enterprises’ needs for successful deployment of new digital technologies.
Huawei has outlined a roadmap for creating an intelligent enterprise, characterized by six key aspects.
The first four aspects result from intelligent transformation:
– The first aspect focuses on Adaptive User Experience for customers.
– The second aspect is Auto-Evolving Products and their inherent product functionality and adaptability.
– The third aspect pertains to Autonomous Operations, covering sensing, planning, decision making, and execution.
– The fourth aspect involves an Augmented Workforce.
The remaining two aspects serve as the foundation of AI:
– The fifth aspect focuses on All-Connected Resources, aiming to connect all parts of an enterprise, including assets, employees, customers, partners, and ecosystems.
– The last aspect is AI-Native Infrastructure, aiming to meet the needs of intelligent applications through ICT infrastructure.
As a company rooted in telecommunications, Huawei recognizes the significance of interconnectedness and networks.
Therefore, the fifth aspect emphasizes the importance of All-Connected Resources, aiming to connect every part of an enterprise, from assets and employees to customers, partners, and ecosystems.
The final aspect, AI-Native Infrastructure, is twofold, with a focus on building ICT infrastructure to support the demands of intelligent applications.
This transitioned to David Wang, Huawei’s Executive Director of the Board and Chairman of the ICT Infrastructure Managing Board, as he emphasized Huawei’s commitment to collaborating with customers and partners to build future-proof infrastructure capable of supporting these initiatives.
To this end, Huawei introduced a new report called the Global Digitalization Index (GDI), which builds on the Global Connectivity Index (GCI) and incorporates new indicators to assess digital infrastructure, including computing, storage, cloud, and green energy. It also quantifies the value of each country’s ICT industry and its impact on the national economy.
A study found that every US$1 investment in ICT results in an US$8.3 return in a country’s digital economy.
Recognizing these returns, Huawei released an Amplifying Industrial Digitalization & Intelligence Practice White Paper with 10 major solutions for industrial intelligence to help businesses understand how to implement digitalization.
“We will also develop new scenario-specific solutions and create an environment for both the economy and society to flourish,” David stated during the keynote address. “Let’s seize the opportunities presented by this transformation and make its benefits accessible to all.”
Notwithstanding, ambitions need support. Supporting these digitalization efforts are a range of new product solutions that enterprises can use to advance their journey into AI.
Acknowledging that widespread AI usage will bring new demands, Huawei announced a focus on several key areas: connectivity, storage, computing, cloud, and energy.
New announcements, including the launch of cloud to mainframe technology by Zang Ping’an, Executive Director of the Board and CEO of Huawei Cloud, aim to facilitate better integration between cloud and computing environments for a centralized view to optimize IT operations.
Huawei’s continued efforts to help enterprises digitalize more widely are evident in their endeavors to make their AI more accessible and easier to deploy.
“We believe that if a company lacks the ability or resources to build their own AI computing infrastructure or train their own foundation model, then cloud services are a more feasible, sustainable option,” explains Eric.
Their Pangu models have been utilized in various industries, and experience suggests that a 1-billion-parameter model is sufficient for scientific computing and prediction scenarios, such as rain forecasts, drug molecule optimization, and technical parameter predictions.
Following AI, Pangu Doer, an intelligent assistant powered by the Pangu large model, was announced to usher in a new era of intelligent cloud services.
Designed around a “1+N” architecture, its uses extend to planning, using, maintaining, and optimizing the cloud through a series of specialized assistants tailored to key enterprise scenarios.
Huawei also introduced its new CANN 8.0 and opened its openMind application enablement kit, aiming to make the industry ecosystem more dynamic by providing wider access.
Additionally, Huawei announced the launch of their new Atlas 900 SuperCluster, the latest offering in Huawei’s Ascend series of computing products, utilizing a brand-new architecture for AI computing.
This was followed by an announcement for enterprises needing to build AI-native cloud infrastructure that matches their requirements.
Zhang subsequently announced the launch of CloudMatrix, designed to interconnect and pool all resources including CPUs, NPUs, DPUs, and memory, comprising an AI-native cloud infrastructure in which everything can be pooled, peer-to-peer, and composed, providing enterprises with significant AI computing power.
Building the foundation for the future of business
Huawei is actively addressing the key challenges businesses face as they adapt to the rapidly evolving digital landscape, with a focus on integrating AI, cloud, and computing technologies to improve operational efficiency and foster innovation.
By concentrating on six key areas – Adaptive User Experience, Auto-Evolving Products, Autonomous Operations, Augmented Workforce, All-Connected Resources, and AI-Native Infrastructure – Huawei aims to empower enterprises to effectively navigate their digital transformation journeys and develop digital and AI applications that enhance their offerings.
This comprehensive approach not only addresses immediate business needs but also prepares organizations for future challenges in an increasingly interconnected world.
This commitment to developing intelligent infrastructure, through collaboration with industry partners and a focus on innovative ICT solutions, is positioning Huawei as a leader in driving the future digital economy.
These innovative solutions and more can be experienced at this year’s GITEX. From October 14 to 18, Huawei will be a Diamond Sponsor at the 44th GITEX GLOBAL 2024, one of the world’s largest technology exhibitions.
With the theme of “Accelerate Industrial Digitalization and Intelligence”, Huawei will launch a series of flagship products and solutions for the global enterprise markets, Reference Architecture for Intelligent Transformation, and rich innovative practices in digital intelligence in the global industry.
During this exhibition, Huawei will also host the Huawei Industrial Digital and Intelligent Transformation Summit 2024, featuring dozens of forums, hundreds of talks, and keynote speeches, promoting discussions with the industry.
China has increased its computing power by 25% to meet the growing demand for artificial intelligence (AI) and other technologies. At the annual China Computational Power Conference in Zhengzhou, it was reported that the country’s total computing capacity reached 246 EFLOPS as of June, showing a significant growth from the previous year. If this trend continues, China is expected to achieve a total computing power of 300 EFLOPS by 2025.
Intelligent computing power used in AI-related tasks experienced a remarkable 65% growth, contributing to China’s position as the second-strongest computing powerhouse globally, after the United States. The US accounted for 32% of the world’s total computing power, surpassing China’s 26 %. This data was compiled by the state-backed China Academy of Information and Communications Technology (CAICT).
Zhao Zhiguo, chief engineer at the Ministry of Information and Technology, emphasized the urgent need for digital information infrastructure such as computing power facilities due to the accelerated pace of digitalization and intelligent transformation of various industries.
To address regional imbalances in digital resources, China launched the Eastern Data and Western Computing project in 2022, aiming to achieve a balance between the more prosperous areas of eastern China and the energy-rich west. The plan includes the construction of 10 computing clusters across the country.
Huawei’s 2023 Annual Report revealed impressive revenue of nearly US$100 billion, positioning the Chinese technology giant above companies such as Tesla, Bank of America, Dell, and NTT in terms of annual revenue. The report highlighted steady growth in the cloud computing and digital power businesses, as well as significant investment in research and innovation, with R&D investment in the past decade reaching US$157 billion.
Ken Hu, Huawei’s Rotating Chairman, expressed gratitude for the trust and support of customers, partners, and friends, emphasizing the company’s resilience and growth despite facing challenges in recent years.
Huawei’s revenue is largely driven by its ICT infrastructure, accounting for over half of the company’s total revenue at US$51.1 billion, a 2.3% increase compared to the previous year. The consumer business experienced a 17.3% growth, reaching a revenue of US$35.5 billion.
Cloud computing also saw significant growth, with revenue increasing by 21.9% to reach US$7.8 billion. Huawei aims to focus on developing core ICT technologies and building platform capabilities for complex hardware and software systems, which are then made available to partners.
Huawei’s chairman, Hu, expressed the company’s commitment to creating greater value for customers and society through open innovation, thriving ecosystems, and a focus on quality. Huawei has partnered with Chinese EV company BYD to incorporate Huawei’s autonomous driving system into its off-road Fangchengbao EVs, with the aim of boosting car sales.
BYD, the world’s largest electric vehicle maker, is partnering with Huawei to utilize its autonomous driving system in its premium cars. The Fangchengbao lineup will be the first BYD model to use Huawei’s Qiankun intelligent driving system and is expected to be launched later in 2024.
The introduction of Qiankun in April 2024 aims to enhance the self-driving systems, including driving chassis, audio, and driver’s seat, reflecting the EV market’s increasing investment in AI and automation to attract potential buyers.
The partnership between Huawei and BYD comes at a time when the EV leader is seeking to improve profitability, as its premium car brands accounted for only 5% of its total sales in the first half of 2024. The EV market is seen as a significant advancement in vehicle engineering, with autonomous vehicles expected to enhance safety and driving experiences.
McKinsey research predicts that electrified passenger vehicle sales will reach 40 million in 2030, indicating rapid market growth, technological advancements, and intense competition across the value chain.
In 2024, EV sales have experienced a slight slowdown as leading organizations compete for market share. The use of Huawei technology by BYD underscores the pressure on large EV companies to offer the latest technology.
BYD aims to maintain its market dominance by improving smart driving configuration, leveraging its cost advantage through vertical integration, and investing in advanced driver-assistance systems (ADAS) and AI and automation offerings.
Huawei’s 2023 Annual Report highlights its robust financial performance, surpassing that of Tesla, with reaching revenue US$99.5 billion and a profit of US$12.3 billion. The organization’s partnership with BYD spans various areas of technology and innovation.
Prior to the recent announcement, both companies collaborated on intelligent driving technologies, leveraging Huawei’s expertise in AI, 5G, and cloud computing to advance capabilities in new EVs and rail transport systems. Additionally, Huawei provided smart factory solutions for BYD and assisted in building a high-quality 10 Gbps data centre campus network.
BYD, a Chinese electric vehicle (EV) maker, has recently teamed up with Huawei to incorporate Huawei’s advanced autonomous driving system, Qiankun, into BYD’s off-road Fang Cheng Bao EVs.
This strategic partnership is aimed at advancing BYD’s premium brands, including Denza, Fangchengbao, and Yangwang.
The collaboration is crucial for BYD to narrow the technological divide in the self-driving space with its competitors.
Huawei’s Qiankun ADS 3.0, which was introduced in April 2024, is composed of two characters: “Qian,” symbolizing heaven, and “kun,” representing the Kunlun Mountains, demonstrating Huawei’s ambition to reach new heights and excel in core technologies within the smart driving landscape.
Qiankun offers advanced smart driving features, such as Navigate on Autopilot (NOA), similar to Tesla’s Full Self-Driving (FSD), and other end-to-end network architecture capabilities that provide a more human-like driving experience.
Qiankun’s development stems from the legacy of Huawei Intelligent Automotive Solution, the company’s previous automotive business unit. Initially established in 2019 as a division within Huawei, this branch transitioned into an independent entity, Shenzhen Yinwang Intelligent Technology Co., Ltd., focusing on providing automotive hardware and software solutions to manufacturers.
The change to Yinwang marked a significant step in Huawei’s commitment to the automotive sector, solidified through key partnerships and investments with companies like Avatr Technology and Seres Group.
Regarding usage, the Harmony Intelligent Mobility Alliance (HIMA) developed by Huawei allows automakers to leverage Huawei’s comprehensive vehicle solutions, facilitating collaboration in product definition, design, marketing, quality control, and delivery.
Noteworthy brands such as Seres, BAIC BluePark, Chery, and JAC Group have benefited from the standardized parts supply model as well as the “Huawei Inside” (HI) and “HI Plus” models, incorporating Huawei’s technologies into their vehicles across different tiers.
Through this alliance, companies like Deepal, M-Hero, Avatr, and other leading manufacturers have embraced Huawei’s innovative solutions, including Qiankun Smart Driving and Harmony Cockpit, to improve their offerings and cater to evolving consumer demands in the competitive automotive market.
Key Differences Between Huawei Cars and BYD
Huawei and BYD are both significant players in the Chinese automotive market, but they differ fundamentally in their approaches, core competencies, and market offerings. Here’s a detailed look at the main distinctions:
1. Core Business and Expertise
Huawei:
Focus on Technology: Huawei is primarily a technology company with a strong background in telecommunications and information technology. Their entry into the automotive industry leverages their expertise in ICT (Information and Communication Technology), AI, and cloud computing.
Autonomous Driving and Connectivity: Huawei focuses on integrating advanced autonomous driving systems and connectivity solutions, such as their Huawei ADS (Autonomous Driving System) and HarmonyOS-powered smart cockpits.
These features are designed to enhance the driving experience through advanced driver assistance systems and seamless connectivity.
BYD:
Automotive Manufacturer: BYD (Build Your Dreams) is an established automotive manufacturer with a comprehensive focus on producing electric and hybrid vehicles. They have a deep expertise in battery technology and electric drivetrains.
Battery Technology: BYD is a leader in battery manufacturing, known for their Blade Battery technology, which emphasizes safety, efficiency, and longevity. Their focus is on creating vehicles that are efficient, affordable, and environmentally friendly.
2. Product Range and Market Strategy
Huawei:
Collaborative Ventures: Huawei collaborates with established car manufacturers such as Seres and Chery to produce vehicles. Models like the AITO M5, M7, and Luxeed S7 showcase these collaborations. Huawei provides the technological backbone, including autonomous driving features, connectivity, and infotainment systems.
Technology Integration: The main selling point of Huawei’s vehicles is the integration of cutting-edge technology, making their cars highly advanced in terms of connectivity and autonomous driving capabilities.
BYD:
Diverse Vehicle Portfolio: BYD produces a wide range of electric vehicles (EVs) and plug-in hybrids (PHEVs), including sedans, SUVs, and buses. They offer models like the Tang, Han, and Qin, which cater to different segments of the market.
Vertical Integration: BYD’s strategy involves vertical integration, controlling the entire supply chain from battery production to vehicle manufacturing. This allows them to optimize costs and ensure high quality across all components of their vehicles.
3. Market Position and Brand Identity
Huawei:
Pioneer in Technology: Huawei positions itself as a pioneer in technology within the automotive industry, with a focus on integrating the latest ICT advancements into vehicles.
Their branding highlights the fusion of smart technology and advanced driving systems.
New Player: As a relatively new player in the automotive market, Huawei is using its technological expertise to distinguish itself from traditional car manufacturers.
BYD:
Established Electric Vehicle (EV) Brand: BYD has a strong presence in the EV market and is globally recognized for its contributions to electric mobility.
Their brand identity is built on their extensive experience in producing dependable and efficient electric vehicles.
Focus on Sustainability: BYD emphasizes sustainability and eco-friendliness, showcasing their efforts in emission reduction and promotion of green energy through their EV offerings.
The fundamental disparities between Huawei and BYD in the automotive market arise from their core business areas, product strategies, and market positioning.
Huawei harnesses its technological capabilities to offer highly connected and autonomous vehicles through collaborations, while BYD concentrates on producing a wide array of electric vehicles with a strong focus on battery technology and sustainability.
These differences shape their respective approaches to revolutionizing the automotive industry and meeting the needs of contemporary consumers.
How Huawei is Revolutionizing the Chinese Automotive Market
Huawei’s foray into the automotive market is causing significant waves throughout the industry, fundamentally changing the dynamics of the Chinese car market.
Their innovative approach, integrating advanced technology with automotive manufacturing, is setting new benchmarks and widespread driving transformation.
Huawei’s dedication to research and development (R&D) and innovation is a game-changer. By leveraging their expertise in ICT, they have introduced features such as the HarmonyOS smart cockpit, which offers seamless connectivity and a user-friendly interface.
This integration is not just about incorporating new gadgets; it transforms the entire driving experience, making it more interactive and personalized.
Furthermore, the adoption of 5G technology ensures that Huawei’s cars are at the forefront of the connected vehicle revolution, offering real-time data exchange and enhanced vehicle-to-everything (V2X) communication.
Additionally, Huawei’s partnerships with established automotive manufacturers like Seres and Chery are accelerating the pace of innovation in the industry.
These collaborations combine Huawei’s technological prowess with the automotive expertise of their partners, resulting in the rapid development and deployment of new vehicle models.
The AITO M5, M7, and M9, as well as the Luxeed S7, showcase how these partnerships can yield high-quality, technologically advanced vehicles that meet the evolving demands of consumers.
These efforts are not only enhancing the competitiveness of the Chinese automotive industry but also positioning it as a leader in the global market.
Conclusion
Huawei’s entry into the automotive market has transformed significantly the Chinese automotive industry by integrating cutting-edge technology with traditional vehicle manufacturing.
Known for its advancements in telecommunications, Huawei utilizes its expertise in ICT, AI, and cloud computing to introduce state-of-the-art autonomous driving systems and smart cockpits powered by HarmonyOS.
These features enhance the user experience by providing seamless connectivity, real-time data exchange, and advanced driver assistance.
Huawei, known for its advancements in telecommunications, is making significant strides in the automotive industry, especially in the realm of autonomous driving.
Their collaboration with AITO, a joint venture with Seres, demonstrates their commitment to integrating cutting-edge technology into modern vehicles.
Here’s a detailed look at how Huawei’s autonomous driving solutions differ from traditional cars and enhance the user experience.
Advanced Autonomous Driving Technology
Huawei’s smart cars are equipped with the HUAWEI ADS 2.0 (Advanced Driving System), which incorporates several state-of-the-art technologies to facilitate autonomous driving:
AI and Machine Learning: Huawei’s autonomous driving system utilizes AI algorithms to process extensive amounts of sensor data, enabling real-time decision-making and adjustments.
Comprehensive Sensor Suite: The vehicles come with a combination of LIDAR, radar, and high-definition cameras, providing a 360-degree view of the surroundings and ensuring precise navigation and obstacle detection.
High-Performance Computing: These systems require robust computing power to handle complex driving scenarios, which Huawei provides through its advanced processors.
Seres: Huawei and Seres have a substantial partnership, resulting in the AITO brand. This collaboration has given rise to models such as the AITO M5, M7, and M9, which integrate Huawei’s advanced ICT and autonomous driving technologies with Seres’ automotive expertise.
Chery: The collaboration with Chery resulted in the creation of the Luxeed S7, an electric sedan that combines Chery’s automotive experience with Huawei’s state-of-the-art technology.
Avatr (Changan, Nio, and CATL): Huawei is working with Avatr, a joint venture involving Changan, Nio, and CATL, to develop new electric models. This partnership aims to produce vehicles that utilize a new platform supporting various types of advanced electric powertrains.
BAIC BluePark: BAIC BluePark partners with Huawei to incorporate smart selection technologies into high-end models, enhancing the user experience with advanced features and connectivity.
Honda: In the Chinese market, Honda integrates Huawei’s components into their electric vehicle lineup, showcasing a successful integration of traditional automotive engineering with Huawei’s advanced technological capabilities.
Driving Experience and PCB Integration
Huawei’s smart cars have garnered positive feedback for their driving experience, especially for the stability and reliability of their autonomous driving systems.
The HarmonyOS-powered smart cockpit offers intuitive controls and personalized settings, significantly improving user satisfaction.
PCBs (Printed Circuit Boards) play a critical role in Huawei’s automotive technology. They support central computing systems, connectivity modules, sensor integration, and power management systems, enabling sophisticated functionalities and ensuring the performance and reliability of Huawei’s vehicles.
The Fangchengbao brand of BYD will be the first to incorporate Huawei’s Qiankun intelligent driving system according to the agreement. The Bao 8 SUV, a model in the Fangchengbao range, is expected to be the first vehicle equipped with this technology, with plans for its release later this year.
As BYD aims to move upmarket and increase sales of its premium brands, including Denza, Fangchengbao, and Yangwang, this collaboration is part of the company’s strategy to focus on higher-margin vehicles to improve profitability.
Despite the fact that these premium brands collectively made up only 5% of BYD’s total sales in the first half of the year, as reported by the China Association of Automobile Manufacturers, BYD is facing a significant challenge.
The decision to integrate Huawei’s autonomous driving system into its vehicles underscores the competitive pressure BYD is experiencing in the rapidly evolving EV market. Despite its dominance in EV sales, largely due to its cost-effective vertical integration strategy, BYD has been striving to catch up in the area of smart driving technologies.
The company has been heavily investing in the development of its own advanced driver-assistance system (ADAS) and has reportedly recruited thousands of engineers since last year to strengthen its in-house capabilities.
However, BYD’s dependence on external suppliers for intelligent features in its upmarket models remains. For example, the company uses Momenta ADAS in its Denza cars. The partnership with Huawei is a significant move in BYD’s efforts to enhance its offerings in this critical area of automotive technology.
The collaboration also highlights Huawei’s increasing influence in the EV sector as a major supplier of ADAS. The tech conglomerate has been expanding its presence in the automotive industry and has formed notable partnerships beyond BYD. For instance, Volkswagen’s Audi brand has also announced plans to utilize Huawei’s ADAS in its EVs intended for the Chinese market.
This strategic alliance between BYD and Huawei reflects the broader trends in the global automotive industry, where traditional automakers and tech companies are increasingly collaborating to meet the demands of next-generation vehicles.
As autonomous driving technology becomes a key differentiator in the premium EV segment, such partnerships are likely to become more common.
Industry observers will closely monitor the success of this venture, as it could potentially reshape the competitive landscape of China’s EV market.
For BYD, the integration of Huawei’s advanced autonomous driving system presents an opportunity to strengthen its position in the premium segment and potentially capture a larger share of this lucrative market.
Closing the Technology Gap
This collaboration comes as BYD aims to narrow the technological gap with Tesla and other emerging Chinese automakers. Despite its dominance in the Chinese EV market, BYD acknowledges the increasing demand for advanced features among buyers.
The partnership represents a significant shift in BYD’s stance on autonomous driving technology. In 2023, the company had argued that self-driving technology was “basically impossible” for consumer applications. However, in 2024, BYD announced a $14 billion investment in smart car technology , including autonomous driving software and driver-assistance systems.
Expanding BYD’s Premium Offerings
BYD’s decision to integrate Huawei’s technology aligns with its strategy to boost sales of its premium brands, including Denza, Fangcheng Bao, and Yangwang. These brands currently make up only 5% of BYD’s total sales in the first half of 2023, according to the China Association of Automobile Manufacturers as cited by Reuters.
By leveraging Huawei’s expertise, BYD aims to differentiate its high-end offerings and improve profitability. The move is part of BYD’s broader ambition to establish itself as a top global automaker, competing with established players like Hyundai Motor Company and Volkswagen, which encompasses several successful brands.
Huawei’s Influence in the EV Sector
Moreover, the partnership also underscores Huawei’s increasing presence in the EV industry as a major supplier of advanced driver-assistance systems (ADAS). Beyond BYD, Huawei has secured a deal with Volkswagen’s Audi to provide ADAS technology for its EVs in the Chinese market.
With this strategic alliance, BYD is positioning itself to compete more effectively in the premium EV segment, both in China and globally. As a result, collaborations like the one between BYD and Huawei are likely to become more common as the prevalence of EVs continues to grow on roads.
5 levels of Autonomous Driving Network
Autonomous driving networks go beyond innovating a single product and are more about innovating system architecture and business models, which requires industry players to collaborate to define standards and guide technology development and rollout.
Huawei has suggested five levels of Autonomous Driving Network systems for the telecom industry:
L0 manual O&M: provides assisted monitoring capabilities and all dynamic tasks must be executed manually.
L1 assisted O&M: performs a specific sub-task based on existing rules to enhance execution efficiency.
L2 partial autonomous networks: enables closed-loop O&M for specific units under certain external environments, reducing the requirement for personnel experience and skills.
L3 conditional autonomous networks: expands on L2 capabilities, allowing the system to sense real-time environmental changes, and in certain domains, optimize and adjust to the external environment to enable intent-based closed-loop management.
L4 highly autonomous networks: builds on L3 capabilities to accommodate more complex cross-domain environments and achieve predictive or active closed-loop management of service and customer experience-driven networks. Operators can then resolve network faults before customer complaints, reduce service outages, and ultimately improve customer satisfaction.
L5 fully autonomous networks: represents the telecom network evolution goal. The system possesses closed-loop automation capabilities across multiple services, multiple domains, and the entire lifecycle for true Autonomous Driving Network.
The future of autonomous driving networks
At Mobile World Congress 2018, Huawei introduced its Intent-Driven Network (IDN) solution, which establishes a digital twin between physical networks and business goals, and helps advance networks from SDNs towards autonomous driving networks. The solution also assists operators and enterprises in implementing digital network transformation centered on service experience.
The solution necessitates four transformations within the industry: from network-centric to user-experience-centric; from open-loop to closed-loop; from passive response to proactive prediction; and from skill-dependent to automation and AI.
Huawei’s IDN solution encompasses various scenarios, including broadband access, IP networks, and optical and data center networks. It enables telecom networks to progress towards Autonomous Driving Networks.
For instance, in the broadband access field, there is an average of 1,000 customer complaints and 300 door-to-door maintenance visits per year for every 10,000 users. Due to a lack of data, about 20 percent of customer complaints cannot be entirely resolved However, the IDN perceives broadband services in real time.
Big data and AI algorithms quickly locate faults and optimize the network, resulting in a 30 percent reduction in home visits and an improved service experience.
In September 2018, Huawei enhanced its Intent-Driven Network (IDN) solution and proposed its “digital world + physical network two-wheel drive” strategy to accelerate IDN innovation.
Huawei is also expediting the implementation of autonomous driving networks in wireless network scenarios. At the 9th Global Mobile Broadband Forum, Huawei published the Key Scenarios of Autonomous Driving Mobile Network white paper, outlining seven key sub-scenarios, such as base station deployment and network energy efficiency, to progressively achieve network automation.
As research progresses, Huawei will continuously update its application scenarios and release its research findings. Huawei and leading global operators have jointly initiated the NetCity project to promote the application of new technologies such as big data, AI, and cloud computing in telecom networks.
By defining business scenarios and introducing innovations following the DevOps model, Huawei and its operator partners have introduced cutting-edge technologies to enhance users’ service experience, driving telecom networks to evolve towards Autonomous Driving Networks.
By the end of 2018, Huawei had collaborated with leading customers to launch 25 NetCity innovation projects. Achieving autonomous driving networks will be a lengthy journey. To realize our vision, the industry must collaborate.
Huawei is dedicated to leading developing ICT solutions through continuous innovation, and simplifying complexity for customers. Together, we will embrace a fully connected, intelligent world.
Huawei introduced a new software brand for intelligent driving called Qiankun on Wednesday (Apr 24), as part of its efforts to establish a strong presence in the electric vehicle industry.
The name Qiankun represents a fusion of heaven and the Kunlun Mountains and the brand aims to offer self-driving systems for various components such as driving chassis, audio, and driver’s seat. Jin Yuzhi, CEO of Huawei’s Intelligent Automotive Solution (IAS) business unit , made this announcement during an event preceding the Beijing auto show.
Jin stated that by the end of 2024, over 500,000 cars equipped with Huawei’s self-driving system will be on the roads, marking the beginning of mass commercialization of smart driving. Huawei’s smart car unit was established in 2019 with the vision of becoming a leading supplier of software and components to partners, akin to German automotive supplier Bosch in the era of intelligent electric vehicles.
In November, Huawei revealed plans to spin off the smart car unit into a new company, which will inherit the unit’s core technologies and resources and receive investments from partners like automaker Changan Auto.
At the event, Jin Yuzhi also announced the launch of the Qiankun ADS 3.0 intelligent driving system, which is an upgraded version of the previous Huawei ADS 2.0, featuring enhancements in mapless intelligent driving, collision avoidance, and all-scenario parking.
The ADS 3.0 boasts improved road and scene recognition through cloud and real vehicle training, providing the system with the ability to make decisions similar to an experienced human driver. It also introduces the GOD network for general obstacle detection, an upgrade from the architecture seen in ADS 2.0.
Huawei claims that the Qiankun ADS 3.0 is the first product in the industry to enable Navigation Cruise Assist (NCA) from parking space to parking space, allowing drivers to exit the car and walk away after selecting the target parking space. This system supports parking in all visible spaces and is not limited to specific types.
The upgrade to Qiankun ADS 3.0 also includes improved capabilities for the omnidirectional collision avoidance system (CAS) to CAS 2.0 standard, covering front, rear, and side collision avoidance. According to Huawei, a test with the Aito M9 equipped with CAS 2.0 outperformed comparable models in various scenarios, including pedestrian crossing and left turns.
The high-end version of Qiankun 3.0 is dependent on Lidar, while there is also a Qiankun SE version for non-Lidar equipped vehicles, which is expected to replace the current Huawei ADS Basic Intelligent Driving system.
Other components of the Qiankun brand include the Qiankun iDVP intelligent vehicle digital platform, Qiankun Vehicle Control Module, and XMotion 2.0 Body Motion Collaborative Control. Huawei claims that the Qiankun vehicle control module is the world’s first 5-in-1 vehicle control SoC (system on chip), leading in terms of high integration, high performance, low latency, high reliability, and high security.
Additionally, the XMotion 2.0 system uses 6D vehicle motion algorithms to enhance driving performance and provide a better driving experience, offering stability control at speeds up to 120 km/h and stability during events such as punctures and high-speed obstacle avoidance. Adaptive slip control ensures that a car equipped with the system does not skid on slippery roads.
Huawei also announced at the conference that the system will be integrated into 10 “new” models to be launched in 2024 from brands including Dongfeng, Changan, GAC, BAIC, Aito, Chery, and JAC.
Finally, upgrades to the HarmonyOS cockpit system were also unveiled at the conference.
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