Electric vehicles are considered a key player in reducing oil
demand. "There is no future for oil and gas in a 1.5-degree world,"
announced former Danish Minister for Climate, Energy and Utilities, Dan
Josejensen. AI predicts that oil and petrol consumption will fall by 75% by
2050 to achieve a net zero figure. The transportation sector uses a large
portion of the world's oil. If oil consumption declines so rapidly to achieve
climate goals, the transport sector must be cabalized. It called for shifting
the automotive sector from oil to Kabul renewable electricity such as wind and
solar. Electric vehicles are a great way to achieve this, as they run on
renewable electricity. For the global net zero target, 50% of the population
needs an EV population by 2050. And the Clean Energy Institute needs 30% market
share of EV sales by 2030. In 2021, global sales of EV cars were 6.5 million
units per year. China sells three million cars and thirty million motorcycles
each year. The European Union and the United States sold 2.5 million and less
than 1 million units, respectively. V's sales will be 30% of total sales by
2030, matching the renewable energy target. No one believes that 30% of the
target can be achieved in EVs including four wheelers, but this is possible
only when 30% market share or more can be achieved in the case of two wheelers.
The reason is that the two-wheeler's growing market ROG is 8%, both in terms of
annual sales of 2 million units and vehicle population of 20 million and it is
simple technology. Motorcycles use 40% of Pakistan's annual requirement. EVs
are also relatively quiet and easy to operate and have no gears or clutches.
They are also easy to maintain as they do not require any oil or filter
replacement. They also have more pickups and are equipped with electronic
controls, some of which have anti-collusion and security features. Drivers will
not have to go to petrol pumps as these vehicles can be charged at home with
the help of special home chargers, but it takes three to four hours to charge
them. And there is a general limit of 100 km per charge. This can be a
disadvantage for those who have long trips in a day. New developments have
taken place in the automotive sector, especially in the EVs sector. Established
brands are making inroads, and new players are emerging, especially outside of
China. Chinese products are also cheaper. It is expected that these new and
cheaper brands will be established in developing countries, which was never
thought of before. This will create opportunities for countries like Pakistan
to build locally. In this regard, E. V-motorcycles are more likely to be
manufactured. In the 1970s, Japan replaced Europeans as a leader in the
automotive sector. It seems that in the case of EVs, if not the automotive
sector. So the new leader will be China. A major Chinese carmaker, BYD, is
exporting EVs buses to Europe and the United States, and is probably the
largest manufacturer in the region.
China's first market share in the supply of batteries, such as EV
parts, is 74%. Two or three leading Japanese manufacturers in the four wheeler
market in Pakistan have monopolized the local market without any serious
effort. However, Suzuki has played a key role in building it locally. It was
fairly consistent with the purchasing power and attitude of the customers due
to the large market size and simple products. Today, one or two Chinese
companies can play a significant role in the development of the EV industry and
market. There is no doubt that electric vehicles are the trend in the world
right now. Petrol and diesel vehicles will soon be a thing of the past.