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The Financial Express

Drive cheap, clean and fast: Electric car is the future

| Updated: August 07, 2021 21:02:00


Drive cheap, clean and fast: Electric car is the future

In developing countries also, environmental pollution is increasing amidst rapid urbanisation and industrialisation. Air pollution is one of the culprits to intensify poison in the air, hygiene, sanitation. Perilous wastes cause debilitating and internecine illnesses, create adverse living conditions, and destroy the ecosystems.

According to World Bank findings, pollution is the worst environmental cause of disease and premature death. Pollution of air, land and water causes more than nine million premature deaths which account for around 16 per cent of all deaths across the globe. It is unequivocally shocking news that pollution casualties far outstrip that from the other known lethal causes. It's three times more deaths than from AIDS, tuberculosis, and malaria combined and 15 times higher than from all wars and other forms of violence.

Worldwide health crises, such as the current Covid-19 pandemic, further highlight the need for continued action in addressing environmental pollution. An ongoing research is finding close links between air pollution and the incidence of illness and death from the Covid-19 scourge.

 Clean environment is vital for leading a healthy life. For the sake of next generation, we all have equal responsibility for keeping this environment pollution-free. Scientists are continuously doing extensive research to invent pollution-free engines and the electric car comes handy for solving major environmental pollution caused indeed by the combustible engine.

Bangladesh's economy is experiencing a robust growth amid this ongoing catastrophic pandemic. In order to expedite this growth all sectors are working relentlessly. For example, Bangladesh Auto Industries Limited (BAIL) and Nitol Motors Limited both are working on electric vehicles (EVs). BAIL was supposed to set up a plant on a 100-acre land in Mirsarai economic zone, right on the outskirts of the port city, and initially, $200 million will be invested. This project's 80 per cent of the investment will be sourced from Bangladesh and the rest will come from foreign direct investment (FDI). The total project cost will be $1 billion in the first five years. Nitol Motors Limited's project is located at Ishwardi, Pabna, on a 10-acre plot of land and component of a manufacturing plant set up in Bogura. It is a joint-venture project with one US and two Chinese companies. The project cost is estimated Tk 3.50 bilion and its cars are expected to hit the market by mid-2023.

The electric vehicles will cut down fuel costs by as much as 90 per cent. As a result, per-kilometre travel cost will be less than 2 taka. For being cost-efficient and helping to get rid of air pollution the demand for the EVs is increasing day by day globally. As per the International Energy Agency data, the number of electric cars, heavy-duty trucks, buses and vans on roads is expected to hit a hopping 145-million mark by 2030.

BloombergNEF (BNEF) study publishes that the global electric- vehicle-market size and adoption will grow exponentially in the long run. The report shows that electric vehicles now are enjoying a market share of only 3 per cent of car sales globally. Over the course of time by 2025 electric vehicles will stretch out 10 per cent of worldwide passenger-vehicle sales, rising to 28 per cent in 2030 and eventually 58 per cent by the end of 2040.

China is a major international electric-car-usage country in the world by outpacing this race with Europe and the USA. As the demand for electric vehicles is increasing worldwide, Bangladesh's large number of youth will be eager to buy the electric car for getting over environmental as well as cost concerns. If the ongoing projects for electric vehicles in Bangladesh can start off their presence strongly, in the long run, they can export these vehicles to other countries as well.

Gradually, the internal-combustion-engine demand will decline for new technological revolutions-and, obviously, technological revolutions tend to happen very swiftly. A robust estimation is done by the experts that in the next 25 years or so most of the combustible engines will be replaced by the electric vehicles.

In order to align with the market demand, unlike Nokia and Kodak strategy, giant company General Motors says they will make only electric vehicles by 2035. Ford also says that, in Europe, by the end of 2030 all vehicles will be electric. Volvo plans to sell electric cars from 2030 and Jaguar from 2025. In one sentence we can say that the electric-vehicle market is about where the internet was around the late 1990s or a foretime 2000s. 

Electric vehicles are environment-friendly and adding a new momentum to the transportation industry. Accordingly, electric charging stations will be a part of our day-to-today life and create a landscape on the highways. Conventional petrol pump and CNG station will disappear and electric charging station will stand in worldwide. Steady economic growth in developing countries like Bangladesh will also experience this new-generation technological penetration very soon.

Tesla electric cars are being used by US people, and it is a very thrilling experience. The car with no engine, so no usage of oil, runs using electric power that is stored in the battery. In full charge, it will smoothly cover 120 miles and before 20 miles the Tesla car will take you to the nearest Tesla charging station automatically. This electric car drives itself and your beloved family members can trace you using Tesla apps. The price of this self-driven car is around $100,000. The amazing feature of the Tesla electric car is parking automatically.

On the Bangladeshi market, Tesla's car is very expensive but BAIL plans to sell SUVs at Tk 2.50 million or sedans for Tk 1.20-1.50 million. Moreover, they will manufacture electric motorcycles and the price range will be Tk 50,000-150,000 which is quite reasonable for the Bangladeshi market. Conversely, Nitol Motors Limited echoed, their sedans price will be Tk 1.0-1.20 million.

Air pollution kills 7.0 million people worldwide every year, and a pollution-free society will contribute to alleviating poverty, ensure a healthy life, boost up shared prosperity, and a more productive workforce. Combustible engines' carbon emission is excessive and one of the culprits of global warming. And electric vehicles adoption lessens net carbon emissions and ensures public health. Consequently, it is obvious that combustible cars will be driven out by electric cars.

The writer is a Credit Analyst at Lanka Bangla Finance Limited.

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