Charging Forward: The Opportunities Electric Vehicles Present for Logistics Ventures

5 min read

Electric cars are the coming of the age of revolution in the motor industry, which run on electricity and not traditional fuel. This is because it is cost-efficient and environmentally friendly.

Thus, in the next section, we will showcase how EVs can lead to the development of new logistic ventures in the UK.

What Is The Growth Rate Of EVs Around The World And In The UK?

The annual revenue from selling EVs will be around 584.08 billion Pounds in 2024. The market is likely to grow by 6.63% between 2024 and 2029, thus illustrating the growth rate of the EV industry globally. Among the countries, China has the highest market share, as the production of EVs and its overall usage are higher in the country.

However, considering the UK market, the annual revenue earned from selling EVs is 25.5 billion pounds. Between 2024 and 2029, the growth rate is likely to be 8.83%, which can rise up to 38 billion Pounds. Thus, it shows that the UK EV market is growing and will increase EV sales by 703.60k when the year 2029 comes around.

Moreover, the UK government actively participates in developing the country's EV market and provides additional incentives and financial assistance to car manufacturers and logistic companies. Thus, it is wise to say that we will see more electric cars than fuel cars on the streets.

How EVs Present Opportunities for Logistics Ventures?

Here are some of the entrepreneurial opportunities for logistics business people to look forward to -

Inflation in Gas Prices

One factor that has helped promote rising gas prices, especially after the Russia-Ukraine conflict, is that Russia has been banned from supplying oil to all EU nations. Hence, it has increased gas prices around the world, whereas electricity is cheaper.

Thus, EVs are better than fuel cars. Although the prices are higher initially, they will eventually be less than fuel cars. Moreover, the gas inflation rate in the UK stands at 2.2% because of elevated oil prices, which is causing a major issue in the state. Hence, switching to EV is a better option, as it will help them mitigate the mortgage rates and boost their financial income.

Leading Toward Net Zero

Another factor increasing the growth of EV companies is the pledge to go net zero by 2050. According to the latest, fuel vehicles release more than 20% of CO2 into the atmosphere, one of the leading causes of global warming. Logistics companies also release one-third of total CO2 into the atmosphere.

Therefore, switching to EVs allows them to reduce their carbon content and reach the target of going net zero by 2050. In addition, EVs come with advanced technologies, which can further enhance their growth in the logistics market. Lastly, it is said that 60% of the total cars in the future will be EVs. So, it is better to switch to electric cars to enhance your logistics business. Click on https://www.radius.com/en-ie/ to know more.

Better Safety and Security

Electric cars come with the latest telematics technology, such as -

Onboard diagnostics
The Internet of Things (IoT)
GPS
Telecommunications

All of these technologies ensure that both the driver and the car remain safe and secure. They help upper management plan suitable routes to drive and transfer things from one place to another. Furthermore, they help set the charging schedule, ensuring the car has the power to run.

Moreover, the advanced telematics system helps analyse the driver’s behaviour and ensures they are in a safe space and driving the car in the best possible health. It will also help the management understand the vehicle’s efficiency and get early alerts to remove existing issues. Thus, it is a great way to improve your logistics and deliver orders right on time.

Government Incentives

It is a known fact that electric cars cost more than fuel cars. This is because lithium batteries are scarce in nature, and R&D for EVs is still ongoing. Thus, the manufacturing price will significantly rise when you consider the cost of materials and technology.

However, the whole process becomes easy when the government provides financial assistance to develop EVs and asks people to buy them. This helps the company to make the maximum profit. Also, logistics will get government assistance, as they will aid in the net zero carbon by 2050. In addition, the government can reduce the load on nature and build a more sustainable future for everyone.

Positive Influence on the Environment

When you add EVs to your supply chain, you are actually taking a step to protect the environment and ensure the world becomes a safer place. Because EVs use electricity to run, they release zero carbon and noise, which creates a better environment for everyone to live in.

Thus, electric vehicles help in -

Reducing Noise Pollution: Electric cars release zero noise, which is great for people with poor heart conditions. Thus, they will help cities reduce noise decibels and let children and old people stay safe.
Improve Air Quality: EVs are known to improve the air quality index, as they release zero carbon into the atmosphere, making it healthier for people to breathe. They also protect the glaciers by keeping them in their original state. Thus, they will reduce the water level and the rate of floods worldwide.

Thus, you can promote a much more healthy environment from your logistic service and improve its operations significantly.

Cost Efficient Vehicles

Another way logistics ventures will get the upper hand with electric vehicles is by reducing the overall cost in the long run. You don’t have to spend much to maintain an electric car, as the telematic systems and other innovative technology ensure the car is safe and running in a healthy mode.

Moreover, you can reduce your fuel cost, as electricity costs less than petrol and diesel. That way, in the long run, the logistic ventures can invest in other sections of the business and improve them majorly. In addition, as you have to change the moving parts of the electric car, you can ensure the car runs smoothly and efficiently. So, shifting to EVs will only improve your revenue and the profit margin.

Wrapping Up!

In the end, we can say that EVs are the safest option for the logistics company, as it will make them sustainable and release less carbon in the atmosphere. Therefore, the article showcases how EVs can help in building new logistics ventures to improve the world and overall logistics service.

Also, it will help the UK to manage its inflation issues and become a safe country to live in.