According to the latest study on the renewable energy industry, electric cars are likely to suffer most of the effects stemming from the continued slump in global oil prices.
The report also forecast a more limited impact on other attached businesses, such as wind-and solar-power companies. Since the end of June, the Brent crude oil prices have fallen by 45% and the aftermath would be that oil-producing countries would slow down their shift away from fossil fuels, while the price of natural gas is deemed on the rise in the US, for example, according to a report coming from Bloomberg New Energy Finance. The cheaper oil’s impact is also set to vary by region, hurting or even helping renewables. Among the low-carbon energy sectors, the most likely to be hurt and become a clear victim are the electric cars – owing to the fact that they can’t compete with gasoline-powered cars when oil is priced lower.
According to the London-based research arm of Bloomberg LP, the electric cars won’t stop growing, but the dampening effect would be clearly visible: in the US, if gasoline reaches an average of $2.09 a gallon, the segment might commend 6% of the entire market by 2020 – down from the 9% share they could reach if gasoline was higher priced, at $3.34 a gallon. Today the market share for electric cars in the US is below 1%.