Electric Car Factors

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Factors Influencing the Growth of Electric Car

1. Cost Factors: -
a. Batteries and Fuel:
The cost of the Plug-in Electric vehicle is comparatively higher than that of the conventional vehicles. The main reason for high cost is the cost of its batteries. There is uncertainty in the resale value of plug-in electric vehicle because of its battery deterioration. However, the operational cost of plug in vehicle is much lower than its counterparts. The cost of charging electric vehicles is approximately a quarter of what it costs to fuel a conventional vehicle. Together these factors influence the growth of electric vehicles.

b. Cost of Advanced Batteries:
Almost one-third of the cost of today’s electric vehicle is due to the cost of batteries.
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Price of Fuel:
Electric vehicles run on electricity and conventional cars n gas, the prices of electricity and gas in the future will have a significant impact on the cost effectiveness of the electric vehicle. A rising world population will push the demand for cars, in turn gas. The U.S. Energy Information has predicted that the prices of gas and electricity will rise and they will become more expensive in 2035 than in 2011. The operational cost of traditional vehicle is more responsive to oil prices than the electric vehicle to electricity which is key point in this
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While the electric vehicle market is still at a very early stage of development, it is poised to reshape industries and communities the world over. Following are the potential benefits of electric vehicles:

1. Creating Jobs: -
It is very early to point out the potential of the electric vehicle in creating newer jobs. Electric vehicle are cheaper to operate than other conventional vehicles. Drivers switching from conventional vehicle to electric vehicle will have more disposable in their hands to spend in other sectors such as housing, food and services. There will be a direct job creation by firms developing components used in electric vehicles and indirectly by the firms who supply these components to the firms.

2. Reduced reliance on Imported Oil
Higher gas prices mean retailers will charge lower mark-up due to competition. This will reduce the profits made by the domestic companies. As per the U.S. Energy Information Administration, around 80% of the cost of a gallon of gas is earned by foreign oil makers thereby the money leaving the nation. Due to electric vehicle, dependence on foreign oil can be reduced. Even if a small amount is saved due to this, it will increase the consumer spending on other household

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