Electric Vehicles Are Here. What Does That Mean for Conventional Cars and Existing Auto Industry?

The movement toward electric vehicles (EVs) has picked up steam. Over the last few years, the auto industry has made significant steps toward electrification through innovation, investment and various policy changes. The shift toward EVs will undoubtedly impact producers, consumers, the environment and the broader economy.

Listen: The auto industry is going electric.

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Michelle Krebs is a senior executive analyst for Autotrader. She says most of the major car companies are investing in electrification, with General Motors committing to an all-electric future. “I think it’s something like 100 new EVs will be on the market in the next couple of years, by 2025,” says Krebs.

While car-making still requires considerable energy, Krebs says EVs still are a step in the right direction in addressing environmental concerns. As far as access, according to Krebs, EVs are still cost-prohibitive. Krebs says the price of cars has increased steadily in recent years, with companies prioritizing the production of SUVs and trucks.

Electrification doesn’t do much to address skyrocketing costs. “The gap widens with EVs, at least at the moment. Buyers of EVs have the highest income demographic of auto buyers,” says Krebs. In terms of how electrification will impact the auto industry as a whole, Krebs says there are still many unknowns as companies are in the pioneering stage of EVs.