Electric Cars Spark Controversy in the Auto Industry Amid U.S. Tax Credit Changes

Key Takeaways

All newly manufactured cars are expected to be electric within 10 to 15 years, according to Professor Gregorio Bustos.
The shift to electric vehicles is ongoing but requires time due to the historical dominance of internal combustion engine vehicles.
Advancements in battery technology and intelligent infrastructure will support the future of self-driving electric vehicles.

Future of Electric Vehicles

Electric cars continue to be a pivotal topic in the automobile industry. As the U.S. prepares to end tax credits for electric vehicle purchases under the “One Big Beautiful Bill Act” led by former President Donald Trump, global discussions on the future of E-mobility are intensifying. European Commission President Ursula von der Leyen recently stated her commitment to combine decarbonization with technological neutrality, indicating a multifaceted approach to reducing emissions.

During the World Knowledge Forum’s session on “E Mobility, Game Changer of Future Industries,” Professor Gregorio Bustos from IE Business School expressed strong confidence in the electric vehicle market. He predicts that in a decade or so, electric cars will dominate newly manufactured vehicles. Bustos, with over 20 years of experience at major automakers like Mercedes-Benz, acknowledges the challenges that come with such a significant industry shift, particularly given the past 130 years of success with internal combustion engines.

Bustos highlighted that manufacturers like BYD and Tesla are already focused entirely on electric vehicles, emphasizing that a transformational process is underway. Advances in battery technology, including potential innovations with salt and iron-based batteries, are pivotal in making electric vehicle production more cost-effective and efficient.

Despite the imminent end of tax credits in the U.S., Bustos believes electric vehicle sales will remain strong, stating that the market is gradually transitioning to electric-only options. Countries like Norway illustrate this trend, with more than 70% of new car sales being electric.

The discussion also veered into the realm of autonomous vehicles. Bustos recalls initial skepticism about self-driving cars but notes that advancements in autonomous technology could significantly reduce traffic accidents. He posits that although fully autonomous electric vehicles may take another 10 to 15 years to materialize, the necessary technology is in development.

While concerns about human drivers being replaced by technology exist, Bustos suggests that even fully autonomous vehicles will require human interaction, framing these cars as tools that allow passengers to engage in other activities during travel. The evolution of the automotive sector appears set for a dramatic and transformative decade ahead, with electric vehicles and autonomous technology leading the charge.

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