Electric Vehicle Plastic Market to grow at 27.82% by 2021
The need for electric vehicles in today’s world cannot be emphasized enough. A WHO report released recently indicates that India is home to 20 of the world’s 40 most polluted cities in the world! According to CNN, New Delhi’s Air Pollution Index on November 7, 2016, was at 999, on a chart that considers 500 as hazardous.
In a time like this, electric vehicles may provide a much-needed respite to the environmental health. These vehicles run on electrically powered engines and do not emit toxic gases in the environment. In order to be more sustainable, electric vehicles need be lighter in weight. And to keep the weight of the vehicles low, their components are made from plastics. It is estimated that the global electric vehicle plastics market will be worth $1.49 billion by 2021 with a compound annual growth rate of 27.82%.
The Indian Outlook
Crude oil makes up a third of India’s import expenses. We are a country that is on its way to becoming third-biggest auto market by 2020. More petrol and diesel vehicles mean even more pollution. In light of the high pollution levels throughout the country, by 2013, the administration aims to make India a 100% electric vehicle nation.
Government initiatives have made the price of electric vehicles far lower as compared to their fuel-based counterparts. Piyush Goyal, India’s energy minister, even indicated that buyers choosing these automobiles will be offered zero-down payment. In October 2016, PM Narendra Modi visited Tesla Motors Headquarters to discuss the potential for renewable sources of energy.
Challenges faced by Electric Vehicles
The biggest hurdle to electric vehicles is a lack of charging stations in India. Some of the Indian electric cars available can run for about 100 km on a full charge, which takes 4-8 hours. Until the right infrastructure for supporting a fossil fuel-free ecosystem isn’t developed, electric cars cannot become popular in the mainstream.
Impact of Electric Vehicles on Plastics
As mentioned earlier, electric vehicles need lightweight components made from plastic. With the world moving to vehicles that use cleaner energy, the demand for plastic in the sector will soon see high growth. By 2017 itself, the projected global demand is expected to reach $73 million.
Components like energy recovery devices, fans, pumps, cooling pipes and other non-moving parts, which were previously made from metal, will be manufactured from plastics. There is also a possibility of using recyclable plastics to produce these parts. This move, however, will not compromise the performance of the lighter vehicles. This further aids the environment and can help manage plastic waste in the country.
Measures are being taken to promote electric vehicles and building supporting infrastructure. The plastic industry will play a major role in promoting this change and will also benefit from the rising demand.