Now you too can buy electric vehicles. It’s now myth that the electric cars are only for the very rich people. Think once again.
In February,2023, the average U.S non-luxury cars including both gas and electric were retailed for about $44,700. Even though there are at least 10 electric cars that cost less than that price and even three electric cars are under $30,000.
The Federal, state and local rebates and incentives can also help to reduce thousands of dollars in electric vehicles buying price.
Even the leasing of an electric vehicle can make you eligible for a greater federal tax rebate than buying that EV.
Here are the 10 cheapest electric vehicles to buy in your budget:
Chevrolet Bolt:
Price: $27495
Federal Tax Benefit: $7500 Fedral Tax Credit
Estimated Rang: 259 Miles
Fun to Drive with great range.
2. Chevrolet Bolt EUV:
Price: $28795
Seating Capacity:For Five
Federal Tax Benefit: $7500 fedral Tax Credit
Estimated Rang: 247 Miles
Larger version of GM’s original Chevy Bolt.
3. Nissan Leaf S:
Price: $29135
Estimated Rang: 149 Miles
Leaf S is a great option for those who drives shorter distances and charge primarily at home.
4. Mini Electric Hard Top:
Price: $31895
Estimated Rang: 114 Miles
A Zippy import, the Mini Electric gets agile handling and quick acceleration.
5. Hyundai Kona Electric:
Price: $34885
Estimated Rang: 258 Miles
One of the best electric vehicle under $50,000
6. Nissan Leaf SV Plus:
Price: $37135
Estimated Rang: 212 Miles
Second generation Leaf gets high marks for safety and its practicality from the consumers.
7. Volkswagen ID.4 Standard:
Price: $40290
Estimated Rang: 209 Miles
Offers Ample cargo space and three years of electrify charging at America’s fast charging Network.
8. Kia Niro EV Wind:
Price: $40875
Estimated Rang: 253 Miles
Comes with driver assistance and wireless smartphone charger.
9. Hyundai Ioniq 5:
Price: $44235
Estimated Rang: 220 Miles
Compelling choice for anyone moving first swing towards Electric vehicles.
10. Nissan Ariya:
Price: $44525
Estimated Rang: 216 Miles
Nissan Ariya is a Crossover SUV, comes with important safety features like blind spot monitoring and automatic braking.
Conclusion:
There are various automakers and new upcoming startups in the field of electric and hybrid vehicles manufacturing are coming to the market and new inventions are creating more opportunities for the players. This definitely creates more possibilities to reduce the manufacturing cost and then the selling price.
Even the tax incentives and government rebates are the key point of discussion for the price relaxation in all electric vehicles.
So the average and common people should rethink before purchasing their new car and can think of any budget Electric Vehicles.
The market share of new electric cars surpassed 7% for the first half of the year 2023 , moving past a critical tipping point for mass acceptance. In the last few months, all-time sales capped 3 million.
Electric Vehicles Market Growth Analysis:
However, perhaps the most remarkable of all is the accomplishment of a record-hot pace of almost one (01) million new Electric Vehicles per year. According to an analysis of Bloomberg Green, in the last 12 months through June, Americans bought 977,445 cars that run solely on electricity.
In the U.S., it took approx. 10 years to sell its first million fully electric vehicles, two years to reach the second million, and just over a year to reach the third. By the time the up-to-date quarter’s records are checked up over the next month and is supposed that the country should be well on its way to a fourth million EVs.
A 12-month rolling sales of electric vehicles is another way to look at the yearly pace of EV purchases, which reveals unexpected progress. For this attitude, each new calendar quarter displays the year of EV purchases leading up to that point. It smooths out periodic variations that can disguise longer-term trends.
During the period during the start of the pandemic, the only time 12-month Electric vehicle sales declined was during a brief stretch beginning in the third quarter of 2019. That is when Tesla for the time being exported a substantial share of its American-made Model 3 inventory to kick off overseas sales.
The story of U.S. electric vehicle acceptance has so far been the tale of two leading actors: the state of California and Tesla Inc. The crucial EV tipping point of 5% of new car sales among the first top 10 worldwide auto market was reached only by California. Tesla recently removed Toyota as the top-selling vehicle brand, electric or otherwise, in the state
Conclusion:
Markets need to branch out for Electric Vehicles to become truly mainstream across the U.S., and for the Detroit auto industry to continue the changeover. Geographically, this happens with California losing some of its U.S. EV shares to states like Texas, Florida, Washington, and New Jersey. Tesla, however, is still very much in the driver’s seat, responsible for 61% of EVs ever sold in the US.
The analyst Corey Cantor of Bloomberg looked at a similar 01 million electric vehicles milestone that included plug-in hybrids. As per the result of the analysis, if you include all cars that come with a plug, he found, that Americans are already buying a million EVs every nine months.
India is the fastest-growing and one of the world’s largest auto marketplaces and has a big population with millions of electric vehicle owners. There is a significant impact of environmental consciousness for the transition from gasoline-powered vehicles to electric vehicles throughout the globe and India is leading in the adoption of green fuel energy sources and electrical vehicles.
As per the IEA report, more than 90% of India’s 2.3 million electric vehicles are cheaper and are two & three-wheelers, motorbikes, and E-Rickshaws.
Analysts say that because of last decay’s enormous rise in fuel and consumers’ awareness of cost benefits, the government has announced a $1.3 billion federal plan to encourage electric vehicle manufacturing and to provide rebates for customers.
Have a look at how the government incentives and cost-conscious customers have given a boost to an electric vehicle boom in India:
1. Government Incentives for Electric Vehicles:
Policy Framework:
In the year 2015, the government of India has launched FAME (Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles scheme. This scheme is to provide incentives for the purchase and usage of electric and hybrid vehicles.
Tax Incentives:
The Indian government has reduced the GST (Goods & services Tax) on electric vehicles as lowered as 5% only whereas the same on gasoline-powered vehicle is 28%.
Charging Infrastructure:
The Indian government is very much focused on creating a robust infrastructure of Electric Vehicles charging systems. The plan is to set up electric vehicles charging stations on highways and within the cities at a regular interval.
State Incentives:
All the states of India have their own policies of electric vehicle and they are offering some additional incentives, subsidies, and extra waivers to both the manufacturers and the consumers. For manufacturers, the state government provides land and electricity at subsidized rates, and for consumers, they may provide rebates in road taxes and rebates in the registration fee of the electric vehicles.
Promotion of Local Manufacturing:
The government has introduced the ‘Make in India’ initiative to support and boost local manufacturing. The goal is to make India a global hub for electric vehicle manufacturing in view of creating jobs for local people and also to reduce production costs.
2. Cost- Conscious Customers:
Lower Total Cost of Ownership:
However, the initial cost of purchasing the electric vehicles are comparatively high, but the total cost of ownership i.e. the cost of fuel, maintenance and other costing for the lifetime of the vehicles are comparatively lower in electric vehicles.
Economies of Scale:
The demand of electric vehicles are increasing day by day and subsequently it results the more production of the electric vehicles. This brings down the low cost of the manufacturing and resulting the lower market price of the electric vehicles.
Increase in More affordable Models:
During the initial stages of manufacturing the electric vehicles, the most available models were only in the premium segments. However, with the increase in demand of the electric vehicles and because of local manufacturing, more affordable models are coming in the market and it is more convenient to select and opt for the customers.
Environmental Awareness:
Swatch Bharat and Clean & Green Movement for pollution-free atmosphere is the major concern of everywhere. The increase in awareness among the consumers about the environment leads to electric vehicles.
Enormous Rise in fuel cost:
The consistent rise in fuel cost i.e. increasing cost of petrol and diesel in the major reason to shift towards alternative fuel and the electric vehicles.
Conclusion:
The collaboration of government policies along with the essential financial and environmental benefits of electric vehicles has created a rapid adoption of electric vehicles in India and even throughout the globe.
If the present trends continues and innovations & the technologies advances then India will definitely see a major transformation in the transportation sector and the automobile market.
The price range of electric vehicles depends on the battery size of the vehicle, the ability of the motors to power the vehicle and increase the range, the charging capability of the vehicle, and other additional features like infotainment or interior and exterior features.
The major factors that can affect the overall costs of owing an Electric Vehicles are:
1. Cost of Electric Vehicles Compared to Gas-Powered Vehicles.
Electric vehicles generally come with a higher price tag than gas-powered vehicles as per your choice of the make and model you want to drive.
However, few small and compact electric vehicles with acceptable range for city driving or small travels usually retail for a lower label price than many gas-powered SUVs or mid-size sedans.
Electric vehicles require less maintenance and no cost of periodic oil changes after every three to five thousand miles as required for gasoline-powered vehicles. However, the electric parts are more expensive to repair or replace in case of wear and tear and accidental damages, though the life of lithium-ion batteries is generally around 10 years. The wheel tires of an electric vehicle are of the same life as those of gas-powered vehicles.
Because of a unique structure and higher cost of repairs of an electric vehicle, the insurance premium cost is greater as compared to the gasoline- powered vehicles.
2.Costs of Powering an Electric Vehicles:
What makes Electric Vehicles so appealing to drivers beyond the eco-accommodating emanations is the capacity to control a vehicle exclusively on electric battery power. Electric vehicles run on the energy produced by an electric engine, which is estimated in kilowatts. Higher kilowatt yields equivalent to more ability to speed up and support the EV.
Like the idea of a gas-powered motor, the more power you feed your vehicle, the more speed and taking care of you get from the vehicle. Rather than searching for an all-the-more impressive motor filled by gas, EVs convey power in light of the vehicle’s battery limit in kilowatt-hours (kWh), which lets you know how much energy a vehicle stores in the battery pack.
3. Basic Charging Costs:
The expense of charging your EV in light of kilowatt-hours will likewise affect the general cost of an electric vehicle. The most costly charge comes from public quick charging stations, however assuming that you plan out your charging timetable to routinely re-energize at your home, you’ll bring about insignificant energy costs.
You can find out about the genuine expense of running an EV in light of the amount it expenses to re-energize the battery. For instance, utilizing a normal 120-volt power source (a similar one you’d use to connect your toaster oven) takes a normal of 40-50 hours to completely charge an electric battery at the most minimal power level. With the typical expense of power at 15 pennies for every kWh, you’re still just paying $7.50 max to charge your vehicle.
Most EVs offer a level 2 charging connector you can equip for your home. These regularly run 240 volts, diverting seriously charging capacity to the battery. Level 2 charges top off your battery power in a normal of 4-10 hours, bringing your costs down to $1.50 or less. Kilowatt-hour rates differ broadly by state, yet utilizing the public typically assists you with computing a good guess of how driving an EV puts on your electric tab.
4. Costs for Fast Charges:
As an EV driver, you are probably spending significantly less to control up as opposed to filling your vehicle. Yet, maneuvering into a quick charging station builds your energy costs.
That is because the advantageous quick charge costs more each kilowatt-hour, frequently twofold or more than the normal cost you would pay at home. For instance, EVgo, from one side of the country to the other, quick charging station, charges non-individuals 34 pennies for each kWh or 29 pennies for fundamental-level individuals in addition to expenses.
To try not to pay something else for a battery re-energize, plan to control up for the time being, saving quick charges for times when it is very important, like startling traffic or during a long excursion.
5. Conclusion:
The electric vehicles are the future of the road conveyance and transportation system. These alternative fuel vehicles are the demand of next generation for a sustainable growth and clean & green environment. Thus people should be come forward to think and adopt the new era vehicles and the electric vehicles are the best option in this way.
The electric vehicles are a little costlier as compared to the gas-powered vehicles but with the innovations and the upcoming developments, the EVs will be more compatible and cheaper with many government incentives and rebates, which are already offered in many states and countries.
Electric Vehicles are the future. As the worldwide community is becoming very aware of the environmental challenges and the sustainable futures. An effort to transition from fossil fuels to sustainable energy sources is rising. The major concern towards a sustainable future is the conveyance systems running on fossil fuels. Electric vehicles (EVs), when seen as innovative ideas, are presently at the very front of this change, ready to reclassify portability for a practical world.
Historical Overview of the Electric Vehicles:
The Origin (1820s-1920s): The concept of electric mobility was initially started during the early 19th century, i.e. by the end of the 1800s, in the country like Europe and the U.S., electric carriages and trolleys were relatively very common, and popular for the mobility.
Decline and Rebirth (1930s-1990s): As the internal combustion engines became governing and dominating the vehicle market, Electric Vehicles faded into anonymity. Yet, the oil crises during the 1970s brought transformed interest in substitutes.
21st Century Revival: With innovative technological advances in batteries and a greater focus on environmental issues, automotive manufacturers like Tesla brought Electric Vehicles back into mainstream discussions.
Technological Advancements for Electric Vehicles:
Battery Technology:The high energy density, long lifespan, and decreasing cost of lithium-ion batteries enable EV manufacturers to rework and do more research for the growth of the electric vehicle market. Even the research for solid-state batteries is in a very advanced stage and this promises even greater efficiency.
Charging Infrastructure: The technological advancement and developments, the establishment of fast charging networks like Tesla’s Supercharger, and many public charging stations have relieved “range anxiety.”
Electric vehicles Charging Points.
Integration with Renewable Energy: The electric vehicles can be linked with renewable energy sources like solar or wind power, which strengthens the sustainability impact.
Environmental Impact:
Reduced Emissions: There is no tailpipe in electrical vehicles as there is no combustion of fuel in the system. Hence, the EVs emit zero tailpipe pollutants, and no air pollution and CO2 emission.
Recycling and Waste: With the increase in the adoption and use of electric vehicles, the recycling and the waste management of batteries are becoming critical.
Current Challenges:
Initial Cost: Despite various tax rebates and price cuts, electrical vehicles are still a costlier affair as compared to traditional gasoline vehicles. However, this is often counterbalanced by lower operating costs.
Energy Sources: The energy sources to charge the batteries of electrical vehicles are either from the coal-burned power plant or from other non-renewable sources. Here the environmental benefits decrease, as these sources create pollutants.
Range Anxiety: This is the major concern of the range; an electrical vehicle goes on a single charge. Many consumers are definitely thinking before going for an electrical vehicle, about how far it will go in a single charge of the battery.
Production Footprint: The manufacturing of batteries for electrical vehicles left a remarkable footprint on the environment.
Future Potential:
Autonomous Driving: There is a belief that the electrical vehicle is tangled with self-driving technology.
Integration with Smart Grids: The electric Grids are becoming smarter and more connected, the electrical vehicles can be used to store or even feedback energy during peak times.
New Markets: With the improved technologies and the better infrastructure, Electric Vehicles have more potential to penetrate the automobile market.
Policy and incentives: In the US, Europe, India, and almost everywhere the governments are giving Tax rebates and other discounts to promote the adoption of electrical vehicles and targeting to phase out internal combustion engine-operated vehicles.
Conclusions:
Electric vehicles can provide a very promising and reliable path to a sustainable future. With the technological growth and drop in purchase prices with the help of government rebates, the common consumers of the sensible society are attracted to EVs. In the global effort towards a sustainable future and pollution-free environment, electrical vehicles will be the major player in the worldwide effort. Whereas Challenges continue, the collective push from industry, policymakers, and consumers suggests a right and electrified road ahead.
If price was the only thing stopping you from buying an electric vehicles this summer, it is time to look again. With smart planning, you can even get the government to pay for part of it with EV tax credits.
Federal EV tax credits are just one factor driving a buying boom this summer. Some cars and trucks also qualify for a state rebate or tax credit. Together, those incentives could cut as much as $15,000 off the price of a new EV. And falling prices and a surge in new models of electric vehicles combine to make this big-ticket purchase less of a splurge.
Adding to the good news, General Motors (GM) just announced in its second-quarter earnings report that it has decided to reverse an earlier decision to end production of the very popular Bolt EV and EUV. GM CEO Mary Barra said GM would reintroduce a new Bolt EV soon, powered by Ultium battery technology. The Bolt has always been one of the most affordable EVs. The Bolt’s MSRP was cut this year to as low as $27,495.
This confluence of financial carrots is why analysts expect record demand for EVs this summer. That will help EVs crack the key level of 10% of all new auto and truck sales in the U.S. later this year.
But do you know how to maximize your electric cars or Electric Vehicles tax credits?
Summer Boom in Electric cars Sales
Electric car sales in the U.S. are already strong. The U.S. ranks third globally in EV sales, after the China EV market and Europe. The U.S. market climbed 55% in 2022, reaching a sales share of 8%, according to the latest Global EV Outlook from the International Energy Agency.
This summer’s popularity of EVs is forceful enough to shift the entire economy. Changes ahead for the global auto industry have major implications for the energy sector, the IEA says. And the electrification trend could reduce the need for 5 million barrels of oil a day by 2030.
IEA Executive Director Fatih Birol said, “Electric vehicles are one of the driving forces in the new global energy economy that is rapidly emerging, and they are bringing about a historic transformation of the car manufacturing industry worldwide.”
EV prices are falling so fast, they’re no longer just a luxury. Kelley Blue Book said last month that the average U.S. price of an electric vehicle in May was $55,488, down from almost $65,000 a year ago. Sales are increasing as prices decline, with May up 4% over April. “April’s downward movement of EV average transaction prices reflects EV automakers, particularly Ford (F) and Tesla (TSLA), seeking a balance between pricing and profitability,” said Michelle Krebs, executive analyst at Cox Automotive.
Electric Vehicles Prices, Tax Credits Power the Switch:
However, lower sticker prices only tell part of the story. U.S. car buyers enjoy other solid incentives to switch to an electric vehicle. They include a federal income tax credit of up to $7,500 for some new EVs. In addition, do not forget added rebates and other benefits from state and local utilities.
While this nest of incentives sounds complicated — and it is — it is also worth thousands of dollars in savings. It is worthwhile to check out eligibility and available perks when shopping for an EV.
Promoting clean energy use was just one facet of 2022’s Inflation Reduction Act. The IRA extended federal EV tax credits for another decade and included eligibility for used EVs. However, it also added complex restrictions such as a price cap, income limitations and final assembly rules.
If you took delivery of a new clean vehicle on or after April 18, 2023, it must meet critical mineral and battery component requirements to qualify for the credit.
If drivers have been reluctant to buy an EV because of high prices, another break is coming. Starting in 2024, taxpayers can transfer the EV tax credit to the dealer at the time of purchase. That will lower the price of the vehicle by the qualifying credit amount.
Who Qualifies For the EV Tax Credit:
You may qualify for an EV tax credit of up to $7,500, according to the IRS, if you buy a new, qualified plug-in EV or fuel cell electric vehicle. The credit is available to individuals and their businesses. To qualify, you must buy it for your own use, not for resale, and use it primarily in the U.S. In addition, your modified adjusted gross income (AGI) may not exceed $300,000 for married couples filing jointly or $225,000 for heads of households. The AGI limit is $150,000 for all other filers.
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. As long as your modified AGI is below the threshold in one of the two years, you can claim the credit. The credit is nonrefundable, so you cannot get back more on the credit than you owe in taxes. Moreover, you cannot apply any excess credit to future tax years.
Vehicles placed in service April 18, 2023, and after must meet all of the criteria listed above. And they must meet new requirements for critical mineral and battery components for the buyer to get an EV tax credit of up to:
$3,750 if the vehicle meets the critical minerals requirement only.
$3,750 if the vehicle meets the battery components requirement only.
$7,500 if the vehicle meets both.
Which New Electric Vehicles Qualify For EV Tax Credits:
#However, that is not all. To qualify, a new vehicle must:
Have a battery capacity of at least 7 kilowatt-hours.
Have a gross vehicle weight rating of less than 14,000 pounds.
Be made by a qualified manufacturer.
Undergo final assembly in North America.
Meet critical mineral and battery component requirements (as of April 18, 2023).
#The sale qualifies for the tax credit only if:
The seller reports required information to you at the time of sale.
The seller reports your name and taxpayer identification number to the IRS.
In addition, the vehicle’s manufacturer suggested retail price (MSRP) cannot exceed:
$80,000 for vans, sport utility vehicles and pickup trucks.
$55,000 for other vehicles.
MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer-installed options, accessories and trim but excluding destination fees. It is not necessarily the price you pay.
You can find your vehicle’s weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle’s window sticker.
#Used EVs Can also Qualify,
While these rules apply to EV credits for new electric vehicles, Congress threw in another carrot. If you buy a qualified used EV or fuel cell vehicle from a licensed dealer for $25,000 or less, you may be eligible for a used EV tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. The credit is nonrefundable, so you cannot get back more on the credit than you owe in taxes. You cannot apply any excess credit to future tax years.
The EV Lease Loophole:
Last year’s IRA placed some new and significant limits on which vehicles qualify for the EV tax credits. The EV has to be built in the U.S., Canada, or Mexico; the battery cells must use minerals from a specific list of countries; and the cells and packs have to be made in the U.S. However, buyers can get federal tax credits for models not on the list allowed by the Inflation Reduction Act if they lease them.
In the IRA, Congress exempted commercial vehicles from the restrictions. While “commercial” is a term usually applied to vehicles like heavy-duty trucks, the Treasury Department defines leased EVs as “commercial” vehicles. Any leased vehicle may qualify for the tax credit because the North American battery-content and manufacturing rules do not apply to commercial vehicles.
When a dealer buys a vehicle and then leases it to a driver, the Treasury says that is a commercial transaction because the driver does not take title. This means the dealer or the finance company holding the lease receives the tax credit. Industry representatives and carmakers say the EV tax credit will help lower the price of leases and increase incentive programs. According to Edmunds, leases reached 34% of total EV sales in March, up from just 18% in March 2022.
“A number of lenders … have offered lease incentive programs. Everyone I have seen has offered it at the full amount,” Andy Koblenz, executive vice president for legal and regulatory affairs at the National Automobile Dealers Association, said at a Federal Reserve Bank of Chicago webinar on EV tax credits. “We’re starting to see it in the marketplace already.” Incentive programs may increase as leasing “will be an attractive way to help get the EVs into the market.”
State EV Tax Credits and Electric Vehicle Rebates:
Some states offer credits or rebates on EV purchases or leases, while utility companies may offer breaks on home charger installations.
Colorado, for example, offers EV tax credits ranging from $2,000 to $8,000 on EV purchases. California’s Clean Vehicle Rebate Project provides rebates from $1,000 to $7,500 for the purchase or lease of new, eligible zero-emission vehicles.
Oregon’s Clean Vehicle Rebate Program is not a tax credit but rather a cash rebate of up to $7,500 on any qualifying purchase or lease. Oregon’s generous rebate program is so popular — it’s handed out $70 million in the past five years — that it is almost out of money and was paused this year. Lawmakers and nonprofits in the state are working to replenish the program’s funding. The Department of Energy’s Alternative Fuels Data Center provides updated state-by-state information on rebates and incentives.
Get Your Federal EV Tax Credit:
If your head is spinning from all the rules but you want to maximize your EV tax credit, Investor’s Business Daily did the work for you. The table below includes all 24 vehicles that qualify for the full $7,500 credit when placed into service on or after April 18, 2023.
It also shows an additional 10 vehicles that qualify for a credit of $3,750. See all the details for various levels of EV tax credits at fueleconomy.gov.
Cars and Trucks That Qualify For The EV Tax Credit:
“The Global Electric Vehicles Motor Market size is expected to reach $19.2 billion by 2028, rising at a market growth of 20.4% CAGR during the forecast period”
Electric Vehicles:
An electric vehicles (EV) motor is an electromechanical device that completely transforms electric energy into mechanical energy to control EVs. An electric vehicle engine’s orientation, end section, shape, rotor, stator, and cooling edge are crucial. Modern electric vehicles are made to manage both DC and AC power internally. Although the battery holds and distributes DC, the motor also requires AC.
With Levels 1 and 2 charging, the energy enters the onboard chargers as AC, while with Level 3 fast chargers, it enters as DC high-voltage current. Power electronics are used to handle the numerous onboard AC/DC conversions. These are especially needed when stepping the voltage from 100 to 800 volts of charging strength to battery/motor system voltages ranging between 350 and 800 volts to the numerous vehicle lighting, chassis, and infotainment functions that need 12-48-volt DC electricity.
Two key components are present in all-electric vehicle motor types. The stator, whose housing is attached to the chassis, is the stationary exterior casing of the motor. The rotor, which is the only spinning component, and functions similarly to a crankshaft as it distributes torque to a differential and the transmission.
In order to reduce the speed difference between the motor and the wheels, the majority of EVs rely on direct-drive (single-ratio) units. Electric motors, like internal combustion engines (ICE), operate most effectively at low rpm and increased load. The fundamental rotor variations amongst the various motor types represent utterly distinct methods for converting the stator’s rotating magnetic field (RMF) into actual rotary motion.
#COVID-19 Impact Analysis:
The pandemic had a negative impact on the electric vehicle motor market. The COVID-19 pandemic’s effects have led to supply-chain disruptions, which have decreased sales of passenger automobiles and temporarily halted vehicle production all across the world. Compared to automobile manufacturing in 2019, there was a decrease in worldwide car production. A number of automakers experienced a shortage of parts, including semiconductor chips, which caused production to be delayed and, as a result, reduced sales of electric vehicle motor systems. It has been concluded that the COVID-19 pandemic temporarily decreased sales of electric vehicles, but it may also increase demand in the future, particularly for larger, more powerful electric vehicles. Due to COVID-19’s travel restrictions, import-dependent suppliers of materials for electric cars have been disrupted as well, which has encouraged the use of domestic alternatives and the stockpiling of necessary components.
##Market Growth Factor :
#Increased consumer interest in Electric Vehicles
A large demand for electric vehicles has emerged in recent years as numerous people are concerned about the potentially disastrous effects of climate change. This is further influenced by the appalling levels of pollution documented in the world’s biggest cities, which continues to rise. The loss of fossil fuel resources and the growing trend among businesses to derive the greatest possible profit from their oil reserves are both factors that contribute to the acceleration of demand growth.
#Consistently rising costs for gasoline and diesel:
The need for fuel, such as gasoline and diesel, has grown dramatically in recent years due to the rising demand for automobiles. Fuel costs have recently increased due to the rising cost of crude oil, which is used to make gasoline and diesel. At the start of the COVID-19 pandemic, crude oil was less expensive because of the temporary closure of numerous enterprises and the drop-in energy consumption. Costs have, nevertheless, dramatically climbed as a result of suppliers’ challenges in meeting consumers’ rising demands.
#Market Restraining Factor:
High cost of production offering an expensive end product
Given that the metals used in these motors are susceptible to export limitations and supply uncertainties, the electric vehicle motors manufacturers are anticipated to experience difficulties in the acquisition of rare earth metals required in permanent magnets for synchronous motors. Additionally, buying a vehicle with an e-powertrain costs almost twice as much as buying one with a standard gasoline engine.
#Type Outlook:
Based on type, the electric vehicle motor market is bifurcated into AC motor and DC motor. The AC motor segment acquired the highest revenue share in the electric vehicle motor market in 2021. A three-phase motor with a focus on speed is the AC induction motor and it can be powered by 240 volts. Because it contains regenerative capabilities that may also serve as a generator and supply power to the vehicle’s battery, this type of vehicle motor is regarded as versatile.
#Application Outlook:
Based on application, the electric vehicle motor market is categorized into passenger cars and commercial vehicles. The commercial cars segment witnessed a significant revenue share in the electric vehicle motor market in 2021. This segment’s rising growth is mostly due to the electric vehicle motor’s explosive growth. A commercial vehicle is any motor vehicle that is used to transport passengers or deliver goods. CMVs include, but are not limited to, pick-up trucks, semi-trucks, vans, buses, box trucks, coaches, taxicabs, travel trailers, and trailers.
#Electric Vehicles Type Outlook:
On the basis of electric vehicle type, the electric vehicle motor market is divided into battery electric vehicle, plugin hybrid vehicle, and hybrid vehicle. The battery electric vehicle segment procured the largest revenue share in the electric vehicle market in 2021. Instead of using any fuel at all, battery-electric cars are propelled only by the stored energy in a battery system, which drives one or even more electric motors while producing no pollution. These cars can usually be charged anywhere, at any moment, and normally for a lot less money than a gas fill-up.
#Regional Outlook:
On the basis of region, the electric vehicle motor market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment recorded the highest revenue share in the electric vehicle motor market in 2021.
The Asia-Pacific market is expanding as a result of rising vehicle requirements and a rise in vehicle ownership. Additionally, due to government measures, several technological developments in the area of electric vehicles are occurring, which further supports the expansion.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Continental AG, Denso Corporation, Robert Bosch GmbH are the forerunners in the Electric Vehicle Motor Market. Companies such as Nidec Corporation, Magna International, Inc., Johnson Electric Holdings Limited are some of the key innovators in Electric Vehicle Motor Market.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Buhler Motor GmbH, Inteva Products, LLC (The Renco Group Inc), Mabuchi Motor Co., Ltd., Johnson Electric Holdings Limited, Continental AG, Denso Corporation, Magna International, Inc., Robert Bosch GmbH, Nidec Corporation and MITSUBA Corporation
#Strategies Deployed in Electric Vehicle Motor Market:
Nov-2022: Continental AG partnered with Sono Motors GmbH, a Germany-based electric solar car developer. Together, the companies aim to work on a climate-friendly mobility project.
May-2022: Continental AG released two new sensors for electrified vehicles named the Current Sensor Module (CSM) and the Battery Impact Detection (BID) system. Both these products protect the battery and maintain performance in electrified vehicles.
May-2022: Denso Corporation collaborated with Honeywell, an America-based multinational conglomerate corporation. Through this collaboration, Denso and Honeywell would co-develop an electric motor (e-motor) for the Lilium Jet and this product would mark the entry of Denso into the aerospace market.
Apr-2022: Denso Corporation came into collaboration with United Semiconductor Japan Co., Ltd., a subsidiary of global semiconductor foundry United Microelectronics Corporation. Through this collaboration, Denso and USJC agreed to fulfill the demand in the automotive industry by producing power semiconductors at USJC’s 300mm fab.
Feb-2022: Robert Bosch GmbH completed the acquisition of Atlatec GmbH, a high-resolution 3D maps provider for SAE Level 3 to 4 automated driving functions. Through this acquisition, Bosch reinforced the field of high-resolution digital maps and offers building blocks of automated driving from maps and software to sensors and actuators to customers.
Jan-2022: Robert Bosch GmbH signed a partnership with IRP Systems, a provider of electric powertrain solutions for e-mobility. Through this partnership, Bosch reinforced automotive manufacturing capabilities with IRP’s innovative e-powertrain technology to offer affordable, robust, and quality controllers for mobility OEMs in Europe and Worldwide.
Oct-2021: Johnson Electric Holdings Limited released an active moisture removal solution, a headlamp condensation management device. With this product, Johnson Electric aims to enhance the quality of life of people and provide safer, healthier, and more comfortable products.
Jun-2021: Mabuchi Motors Co, Ltd. completed the acquisition of Electromag SA, an expert in developing and manufacturing brushless DC motors to serve demanding healthcare applications. Through this acquisition, Mabuchi strengthened its medical market sales and enhanced its specialization in brushless motors.
Dec-2020: Magna International, Inc. signed an agreement with LG Electronics. Following the agreement, the companies established a Joint Venture Company named LG Magna e-Powertrain. The JV manufactures onboard chargers, inverters, and e-motors for some automakers, as well as manufactures related e-drive systems for assisting the emerging global shift for vehicle electrification.
Sep-2020: Denso Corporation unveiled a new Electric Power Steering Motor Control Unit (EPS-MCU). This product aims to make the automobile society safe and secure by offering enhanced handling and safety to vehicles.
Dec-2019: Nidec Corporation took over Roboteq Inc., an American ultra-low voltage (ULV) motor designer. Following this acquisition, Nidec offers ULV drives, precision gearboxes, and servo motors to AGV customers.
Jul- 2019: Continental AG opened a new Powertrain plant and expanded its business to Wuhu, China. This facility enhanced production capacity and offers low-emission combustion technologies and the latest energy vehicles.
