In 2015, the top three best selling vehicles in the world were the Ford F-Series, the Chevy Silverado and the Dodge Ram, respectively. 2016 might yield the exact same results, but as we near the 2020’s, the auto market and the oil industry could be in for a major makeover. Today, the electric car makes less than 1% of all cars on the road. Most of them are not cool or pretty, but they are effective and efficient. Tesla has already entered the market in a big way, but mostly in the luxury class, which are unattainable in most demographics. But, Chevy, Nissan and Tesla already have plans to release electric vehicles in the $30,000 range within the next few years. Imagine the implications that alone will have on oil and car companies. What happens when Ford, Dodge, Honda, and Toyota follow suit?
The oil industry is not ready for a blow like this, as they predict that electric vehicles won’t makeup more than 1% of all vehicles for the next 25 years. That contradicts the fact that electric vehicle sales more than doubled last year, and if that was to occur exponentially over the next 10 years, the oil industry would be right back where it was two years ago. However unlikely that kind of sustained growth is, the electric car market is growing and car companies will cater to the needs of their target market, whether that be by oil or electricity.
Despite what oil companies claim, when their are electric pick up trucks and sports cars for under $40,000, the average customer will give more than a little thought to going electric.