EV Hybrid Battle – The EV/Hybrid Market 2023 🚘
According to the 2015 Paris climate agreement, global net-zero greenhouse gas emissions must be reached by 2050 to limit global warming to 1.5°C. This means that gasoline-powered vehicles must be largely phased out by that time, and as cars typically have a lifespan of 15-20 years, this would likely mean the end of a new production of gasoline-powered cars after about 2035. In anticipation of this transition, major car companies such as GM and Volvo have announced plans to produce only electric vehicles (EVs) by or before 2035. However, Toyota, the world’s largest automaker, has taken a different approach, stating that it plans to offer a range of options, including hydrogen-fuel-cell vehicles, rather than focusing solely on EVs. While Toyota does have plans for EV sales to reach 3.5 million by 2030 (or 35% of its current annual sales), the company also sees hybrids as a viable option that can significantly cut emissions.
Hybrid vehicles, which have a small battery that helps the gasoline engine by recapturing energy during driving, can reduce emissions by about 20% compared to their fully gasoline-powered counterparts. Plug-in hybrids, which have a battery that can be charged using electricity and typically run 25-50 miles on electricity before switching to their gasoline engine, can lead to even more significant emissions cuts. However, the exact amount depends on driving and charging habits and the sources of electricity used to charge the battery. In the US, EVs have been found to correspond to 60-68% lower lifetime emissions than gasoline-powered vehicles, while in Europe, the savings are even higher at 66-69%. However, in countries with less clean electricity, EVs may produce more emissions than hybrids.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.