Electric car disruption

                                         
                                                    Tesla Model S Electric car 

Today automobile industry is about to be disrupted by electric cars.A lot of things are right now in favor of electric cars.By year 2030 across the world only electric vehicles will be getting sold.This will have a huge implication on employment,climate change and ownership of a car.I will list out few points which will accelerate the electric car usage.

1.Efficiency:With all the efficiency improvements that have take place over last century an internal combustion engine(petrol/diesel) still has of 17-21%.There is a limit to further efficiency improvement which are governed by the laws of thermodynamics.On the other had an electric motor has an efficiency of 90-95%.Efficiency is clearly in favor of electric cars and they are non polluting.

2.Cost:Charging a electric vehicle will be 10 times cheaper than filling up fuel in a car.Today if we are to use an app based taxi service roughly 30-55% of the cost is due fuel charge.But if the cars are to be converted to electric then only 5% of the cost will be for charging electric vehicle.For example to travel 16 km distance Ola or Uber charges us Rs 225.If all the taxis are to be converted to electric vehicles we will be able to travel the same distance in only Rs 165.Cost of electricity is bound to further go down as power production gets converted into renewable energy using solar or wind energy

3. Maintenance:An petrol car has more than 2000 moving parts.But an electric close to only 20 moving parts.What it means is the number of parts need to make a car will go down considerably.Scope of conventional engineering needed to develop a car will reduce substantially.Many automobile suppliers will not be able to sustain the onslaught of electric cars.Less number of parts means very less maintenance cost and lesser car dealerships.Electric cars will have infinite mile warranty.

4.Electric vehicles are more powerful:Electric motors have better torque characteristics than petrol or diesel engines.This means they can accelerate faster than all sports cars like Ferrari,Mclaren,Lamborgini and Porsche.Performance wise electric car will be any day better than a conventional car.All this will be at a cost which will be much lower that of present day super cars.

5.Cost of Ownership:In year 2014 electric car costed around $80000.This will go down to $33000 by the year 2018 and to less than $5000 by the year 2030.Today the median cost of owning a petrol or diesel car in US is around $35000.So in a years time EVs will be cheaper than an average car in US.This is with the assumption that the cost of batteries will fall down by 16% every year.By year 2025 owning an electric car will be very cheap and the cost equation will be totally against the petrol or diesel cars.

6.Mobility Services:Today most big car makers have started investing heavily in electric cars.Companies like GM and Ford are also trying to get into mobility services like Uber.This is because in sharing economy most people will become reluctant to own a car.So only way to make money from a car will be through app based taxi and by providing other services around a car.Many computer companies like Foxcom are trying to enter in to car business.This is because cars will become computers on wheel even powering our houses in near future.