Automobile manufacturers heavily invest in electric vehicles.

Volkswagen, Nissan, Tesla Motors, Ford, and a slew of other automobile manufacturers from around the world have all made significant investments in recent years. They have invested literally hundreds of millions of dollars, with a large portion of this funding coming from the public purse in the form of government loans from countries like the United States, the United Kingdom, and others.

 Although the general public does not appear to be particularly enthusiastic about the electric vehicle at the moment, automobile manufacturers and governments worldwide are determined to make them work.

What is holding back the widespread adoption of electric vehicles?

The issue of electric charging stations, which are effectively the gasoline stations of the electric vehicle market, is one that is frequently brought up. Even if you have the most environmentally friendly mode of transportation, the most energy-efficient engine, and the best electric vehicle in the world, why bother if you can't get from point A to point B because there aren't any gas stations nearby?

The fact of the matter is that both automobile manufacturers and global governments have come to the realization that the market for electric vehicles cannot exist without electric charging stations. As a result, we have also seen a significant increase in financial incentives for individuals and businesses to install and maintain electric charging stations. In fact, numerous governments and well-known organizations are installing charging stations physically at many of their public venues.

Is the electric car industry being affected by the global economy?

The money that is currently being invested in the market for electric vehicles is one component of a slew of other funding options that were made available some time ago. This may have occurred before experts were aware of the severe global economic downturn brought on by the US mortgage crisis in 2008. As a result, it should come as no surprise that people all over the world, who frequently find it difficult to meet their monthly obligations, are reluctant to spend more money on electric vehicles, which generally cost more than gasoline or diesel vehicles.

We will see an increase in the sales of electric vehicles when the global economy does finally begin to recover, which could happen any time in the next ten years. When the global economy recovers, the three-pronged strategy of increased investment, improved technology, and a variety of new charging stations will make a difference.

Is there a chance that sales of electric cars will slow down?

It appears that global corporations and governments have invested too much in the electric car market at this point to risk it failing once more. False dawns in the electric vehicle market have cost businesses millions of dollars in the past, but this is unlikely to happen again. When you consider the potential savings in efficiency and the reduced impact on the environment, as well as the advancements in technology, journey capacity is unquestionably expanding. Are we not concerned about nothing?

Is China the key to the market for electric vehicles?

Regarding electric vehicles, it appears that the Chinese government is behind a significant push throughout the country, despite the fact that the automotive giants in the United States and their more conventional counterparts in the Far East continue to dominate the news. Because there is a growing sense of optimism within China that electric vehicles will soon be commonplace everywhere else, the Chinese government has given away hundreds of millions of dollars to help this market grow.

China aims to have 5 million electric vehicles on the road by 2020. The Chinese government's promise to have 5 million EVs on the road by 2020 has given the Chinese auto industry a lot of strength. Governments rarely make such predictions. Indeed, Wanxiang Group of China recently received approval from US authorities to acquire bankrupt A123 Systems for a rumored $256 million. This was an organization which had gotten in overabundance of $130 million in government help and was a historic engineer of electric vehicle batteries.

In light of indications that the two political powerhouses of the world may be willing to collaborate in the market for electric vehicles, this action by the US authorities has provided hope for the future. It's not clear why the Chinese government has decided to back the electric vehicle market this year, especially when you consider that global sales were pretty bad in 2012. But there is a lot of speculation!

Decreasing reliance upon oil

The Chinese specialists have for a long time currently been hesitant to be excessively subject to any mineral or any assets with oil becoming the dominant focal point. The public authority has obviously concluded that moving towards an electric vehicle market will diminish this reliance upon the dark gold and eventually decrease the power and the hold which the US government has all over the planet. It is true that improved technology is the key, and there are high hopes that this will initiate a new era for EVs worldwide.

It is difficult to determine whether other governments around the world thought too quickly about electric vehicles, which resulted in a lack of sales in 2012, or if they were merely lip service and did not invest all of the funds they had promised. The fact that the Chinese government is willing to lead the industry and that Chinese automakers are willing to pick up the slack should encourage other governments and the auto industry worldwide to do the same.

Is 2013 going to be the year of the electric car?

Experts have consistently predicted that "this year" will be the tipping point for electric vehicles, leading to their widespread adoption. Although we have repeatedly been dissatisfied, the market has diminished, and sales have been disappointing, it is possible that the inauguration of the Chinese government will serve as the highly desired tipping point.

Throughout 2013, experts will closely monitor global sales of electric vehicles. While consumers will ultimately decide if this is the year of the electric vehicle, they will be keeping an eye on the financial incentives provided by governments around the world.

Conclusion The Chinese government's promise to have 5 million electric vehicles on Chinese roads by 2020 is unlikely to be followed by other governments around the world. Consequently, rather than advancements in short-term technology, battery power, etc., it may be the Chinese government's introduction that finally propels the EV into the mass market.