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EV PROBLEMS AHEAD

Many people understand the limitations of the new wave of electric vehicles - limited range, which is reduced significantly in cold winter conditions and by the use of lights, heaters etc; lack of charging infrastructure; difficulties of charging if you live in an inaccessible property eg a flat; massive depreciation, high purchase costs etc etc.


What many people don't realise is the massive threat that the move to EVs poses for car manufacturers in the UK and the geopolitical and trade issues that are likely to result.

In the UK this year private sales of EVs have dropped 10% while business purchases have risen almost 10%, helped by tax efficient corporate schemes.

In short - we are being pushed into buying a product that most of us don't want and that rarely ends well.


It's estimated that if things continue as they are, there will be a worldwide overproduction of 20 million EVs in the next 3 years.


In the UK, car manufacturers will be fined if they don't reach increasingly high and rigid quotas for the ratio of EV to normal cars they sell. This fact, plus the overproduction of EVs will mean that there will be some cheap EVs around - cheap that is for an EV - currently the VW ID4, a mid size SUV will cost you between £44000 and £53000 to buy new, or you could try a PCP with a deposit of over £6000 and £530 per month for 3 years. Quite how that's affordable for the majority of the population I don't know.


EVEN THIS 5 LITRE V8 JAGUAR WILL GO FURTHER ON A TANK OF FUEL THAN A CHARGED EV


But don't worry - the Chinese can undercut these prices significantly, which is why America has just placed a 100% tarif on Chinese EV imports.


China controls more than 70% of the processing of the minerals required for battery production, at base costs 10-20% cheaper than anywhere else, so they have a significant grasp on the EV market.


Looking ahead, Chinese brands that undercut traditional car makers EV prices are likely to flood the UK and European market and without strong trade tarifs will make life very difficult for the Europeans. Do we want to be so reliant on China?


EVs are great for certain locations and purposes - shorter city commutes for example, but at present it's hard to see how the roll out of EVs nationwide could take place with the current levels of public resistance to the switch - unless the government forces the issue with yet more increases to the already too-high road tax bills and higher fuel duties. You have been warned!



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