view transcript

WHAT'S IN STORE FOR THE FUTURE OF THE AUTO INDUSTRY?

2019'S NEW YORK INTERNATIONAL AUTO SHOW SIGNALED THAT THE ANSWER MAY BE ELECTRIC CARS.

SO HERE'S THE PROOF ...

MORE THAN 40 VEHICLES DISPLAYED AT THE SHOW INCLUDED A BATTERY POWER COMPONENT

AND OUT OF THE THREE FINALISTS FOR 2019'S WORLD CAR OF THE YEAR, TWO WERE FULLY ELECTRIC.

AUDI'S E-TRON WAS THE RUNNER-UP WHILE JAGUAR'S FIRST ALL-ELECTRIC VEHICLE, ALSO KNOWN AS THE I-PACE, TOOK HOME FIRST PRIZE.

LATELY, THERE HAS BEEN AN INCREASE IN ELECTRIC CAR SALES

WHERE TESLA HAS LED THE PACK WITH MORE THAN 50 PERCENT OF THOSE SALES.

ELECTRIC VEHICLES SALES WERE UP 81 % IN 2018. (SOURCE: TRACKING WEBSITE INSIDE EVS)

THESTREET RECENTLY SPOKE TO THE FOUNDER OF ELECTRA MECCANICA, JERRY KROLL. HIS COMPANY SELLS A SINGLE- PASSENGER EV, CALLED THE SOLO. HE SEEMSPOSITIVE ABOUT THE FUTURE OF ELECTRIC CARS WHILE CITING HIS CAR'S SALES.

SOUND BYTE: "OUR FIRST 2000 ORDERS ARE SOLD OUT. 23, 000 ORDERS. SO, WE HAVE 5000 COMING OUT IN CALENDAR YEAR 2019, 20,000 THE FOLLOWING YEAR. I EXPECT AS THESE CARS ARE DELIVERED NOW IN SAN FRANCISCO AND LOS ANGELES; OUR SALES ARE GOING TO SPIKE. "

SALES OF ELECTRIC CARS HAVE ALSO BEEN ON THE RISE IN OTHER COUNTRIES ...

IN NORWAY, ELECTRIC VEHICLES OUTSOLD OTHER NON-ELECTRIC CAR MODELS FOR THE FIRST TIME IN MARCH 2019 ...

IN FACT, ONE REPORT PROJECTS THAT ELECTRIC VEHICLES WILL MAKE UP ABOUT 50% OF THE COUNTRY'S CAR SALES IN 2019.

(SOURCE: THE NORWEGIAN ELECTRIC VEHICLE ASSOCIATION)

GIVEN THE UPSWING IN ELECTRIC CAR SALES, FORD WAS ANOTHER COMPANY THAT RECENTLY DECIDED TO JUMP ON THE BANDWAGON - THE COMPANY ANNOUNCED IT WAS GOING TO INVEST $500 MILLION TO DEVELOP AN ALL-NEW ELECTRIC VEHICLE WITH RIVIAN, A START-UP COMPANY BASED IN MICHIGAN.

AND WHILE THE FUTURE OF ELECTRIC CARS CONTINUES TO LOOK BRIGHT, THERE ARE STILL CONCERNS LOOMING AMONG CONSUMERS ...

SOUND BYTE: FILIP BRABEC, AUDI OF AMERICA, VP PRODUCT MANAGEMENT

"THE CHALLENGES IS REALLY COMMON TO ENTIRE INDUSTRY I.E. PERCEPTION OF ELECTRIC VEHICLES. AND OF COURSE, LOTS OF PEOPLE HAVE CERTAIN MISCONCEPTION ABOUT THEM, IN TERMS OF RANGE FOR EXAMPLE. THERE IS A THING CALLED RANGE ANXIETY, OF COURSE, THAT LOT OF PEOPLE WORRY ABOUT THE RANGE. HOW FAR THEY CAN GET? THE THING THAT WE HAVE TO KEEP IN MIND IS THAT WHEN YOU DRIVE AN EV. EACH AND EVERY DAY, YOU ARE DRIVING ESSENTIALLY WITH A FULL TANK OUT OF THE GARAGE 'COS YOU ARE CHARGING IN YOUR GARAGE. SO, ONCE YOU GET THAT IN PEOPLE'S MINDSET, IT BECOMES A LOT EASIER TO TALK ABOUT THINGS LIKE RANGE. I WOULD SAY MOSTLY AROUND THE PERCEPTION OF ELECTRIC VEHICLES."

THE LACK OF CHARGING STATIONS AND OUTLETS ACROSS THE U.S. IS ALSO A CHALLENGE FOR THE ELECTRIC CAR INDUSTRY. AS OF 2018, THERE ARE ONLY AROUND 20,000 PUBLIC CHARGING STATIONS AND MORE THAN 57,000 OUTLETS. (SOURCE: STATISTA 2019) COMPARED TO THE MORE THAN 1 MILLION ELECTRIC VEHICLES THAT ARE CURRENTLY ON THE ROAD. (SOURCE: EDISON ELECTRIC INSTITUTUTE)

BUT EVEN WITH THOSE CHALLENGES IN MIND ... SUPPORTERS ARE STILL OPTIMISTIC ABOUT THE FUTURE OF THE AUTOMOBILE INDUSTRY.

SOUND BYTE: ROEL DE VRIES, NISSAN CORPORATE VICE PRESIDENT, GLOBAL HEAD OF MARKETING AND BRAND STRATEGY


ELECTRIC VEHICLES ARE REALLY AMAZING TO DRIVE. THEY ARE VERY DIFFERENT TO DRIVE. AND WE CAN USE A LOT OF TECHNOLOGY IN TERMS OF AUTONOMOUS DRIVE, IN TERMS OF CONNECTIVITY THAT WILL MAKE THIS REALLY THE CAR OF THE FUTURE, NOT BECAUSE GOVERNMENT STIMULATED, NOT BECAUSE WE AS AN INDUSTRY WANT PEOPLE TO DRIVE ELECTRIC CARS BUT SIMPLY BECAUSE PEOPLE WILL MOVE TO ELECTRIC CARS BECAUSE THEY ARE JUST AMAZING CARS TO HAVE.

IT'S NO SECRET MORE COMPANIES ARE GETTING INVOLVED IN THE ELECTRIC CAR SPACE. BUT ONLY TIME WILL TELL IF MORE CONSUMERS WILL WANT TO TO BUY INTO IT.

Is the auto industry going electric?

It seems like that. 

The 2019 New York International Auto Show had more than 40 vehicles with a battery power component.

Wait there's more. The top two of the three finalists for 2019's World Car of The Year were fully electric. The Audi's  (AUDVF) e-tron was the second runner up while Jaguar's  (TTM) first all-electric vehicle, also known as I-Pace, took home the first prize.

While New York was hosting the International Auto Show, Ford announced a $500 million investment to develop an all-new electric vehicle with Rivian, a start-up company based in Michigan.

This also suggests that bigger companies are not letting electric vehicles get away from their hands. Also, the sales of electric cars are on the rise. According to Inside EVs, in 2018, electric vehicles sales were up by 81%.

Jerry Kroll, the founder of Electra Meccanica (SOLO - Get Report) , the company that sells a single-passenger electric vehicles,  is hopeful that the industry will continue to boom. He cites his company's sales figure to back it up. 

"Our first two years are sold out-23,000 orders," he said. "We have 5,000 coming out in calendar year 2019 - 20,000 the following year," Kroll said.

"I expect as these cars are delivered now in San Francisco and Los Angeles, our sales are going to spike," he added.

The sales of electric vehicles are increasing not only in the U.S., but also in other countries.

Electric cars outsold other non-electric car models in Norway for the first time in March 2019, which was about 60% of all vehicles sales.

Want to know more about the future of electric cars? Watch the video above. 

Related. Volkswagen to Invest $2.6B in Ford Self-Driving Unit - Reports

              3 SUVs That Could Revolutionize Your Carpool in 2020

              Chinese Electric Car Company: NIO

Trending Videos on TheStreet