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Strong government incentives for EVs and aggressive corporate emission goals driving growth of new age electric vehicle start-ups
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The current decade is expected to create new opportunities and more demand for greener powertrain alternatives. The biggest opportunities are seen in battery electric technology to expedite adoption for a cleaner and sustainable mobility. Over the last decade battery prices have fallen precipitously and are expected to reduce even further in the next 5-10 years. Price of motors, power electronics, inverters and other electric components have also decreased considerably. This has attracted a host of new players to the EV space in recent years drawn in by the shear potential in terms of volumes as well as favorable business case for early adoption of electrification. A lot of the new companies are startups that are building commercial EVs from the scratch and hence bring in fresh and dedicated platforms for electrification, making the overall vehicle highly efficient. Some of the top start-ups in this space are Arrival, Tesla, Rivian, Lion Electric, Hyzon Motors, Volta Trucks, Electric Last Miles Solutions (ELMS) and Nikola Motors. These companies are expected to play a major role in the transformation of the commercial vehicle industry towards an electric ecosystem.Governments at both federal and state level as well as city municipals in North America and Europe especially are moving forward quickly towards policies favoring EV adoption. Many large companies, especially private fleets have internal mandates to cut down on emission make their respective companies carbon neutral in the next 10-20 years. Companies such as Amazon, Walmart, UPS, DHL, FedEx an IKEA among others are leading the way. These trends present a great opportunity for the upcoming new age EV start-ups.
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