Based on latest market data, the world is slowly leaning towards renewable sources of energy. As such, there has been a recent spike in terms of demand for electric cars. In order to get ahead of the competition, traditional carmakers are making a huge bet in an effort to conquer the world's biggest electric car market, China.
Recent reports have revealed that automakers are planning to invest as much as $300 billion in electric car technology within the next 5 to 10 years. Reports also claim that half of that total investment is targeted towards China, the global market with the biggest potential when it comes to electric cars.
While the majority of the world's car industry still rely on fossil fuels, there is a shift in terms of preference, especially on the millennial demographic. A handful of Asian territories lately are slowly transitioning towards the adoption of battery and electric powered cars.
One of the biggest investors in the Chinese electric car market is German car manufacturing giant Volkswagen AG. The company, driven in part by huge fees levied on carbon dioxide emissions, is responsible for nearly half of the $300 billion total global investment on electric cars.
An analysis of public data released recently by Reuters revealed that Volkswagen is aiming to advance the technology behind electric cars in a bid to improve battery cost and range. The car manufacturer is also looking for ways to lessen the time it takes to charge electric car batteries while at the same time engineer a car design that appeals to a much younger consumer preference.
China has been on the frontlines of the development of electric cars. The country is also imposing restrictions on conventional diesel and gasoline engines, a decision that has helped drive car prices in the country to unprecedented levels.
The $300 billion investment automakers promised to throw towards the electric car industry will help skyrocket the research, development, and production of electric cars not only in China but also in Europe and North America.
Of the $300 billion total investment, Volkswagen is responsible for at least one-third of it. The German is planning to invest $91 billion toward electric cars. While this sounds like a noble and practical undertaking, some observers have noted that the company might be doubling down on its efforts to distance itself away from the Dieselgate, the scandal that has cost the company billions in legal settlements and penalties.
