Renault, Fiat and VW Scam Will Quicken the Surge of Electric Cars

The latest emission rigging probes have been announced on both sides of the Atlantic, hitting diesel cars with many devastating scandals. 

If we consider the accusations as true, car companies are undoubtedly showing serious negligence with regards to human health. But in some way, this negligence can be a gain for the future generation. Moreover, the fallout from ‘dieselgate‘, a year ago, confirms that diesel calamity is likely to raise the surge of electric cars.

As per the director at Transport & Environment – Greg Archer; 

“There has been a real sea change in attitude by the car industry, in favor of electric vehicles and recognizing that this is the beginning of the end of diesel in passenger cars,” 

The scandal of emission rigging is calamitous for VW 

As per the latest news, six executives of VW face criminal charges and the company has been fined with $4.3bn dollars, making it $20bn in total after the company was initially fined by US Environment Protection Agency – EPA. 

Archer also added; “That Fiat issue in the US will not be limited to the US – those vehicles and that engine are being used in Europe as well,”    

KPMG collected stats in a survey of almost 1,000 auto executives and a majority of them agreed that diesel is almost dead now. With that, they called battery electric vehicles as the top trend of the auto industry. 

 VW scandal and political development  

The sale, after the VW scandal, apparently did not affect diesel cars, but there have been significant political developments. With the EU’s latest testing regulations,  diesel cars will become more expensive. Also, considering the subsidy scheme, EU holds a much higher proportion of diesel cars than anywhere else.       

Meanwhile, Athens, Madrid, Paris and Mexico City have too, announced the ban of diesel cars by the year 2025. In France, people who buy electric cars over diesel cars, are given €10,000. 

Similarly, Sadiq Khan – London mayor – has initiated a scheme in which drivers of diesel cars are charged with £10 on entering the center of the city. 

All of these political agendas and the devaluation of diesel cars in the consumers’ eyes emerged from the outrage against VW’s duplicity. 

“Everyone sees which way it is going. Eighteen months ago, the industry was really big on diesel. A load of UK companies was advertising ‘clean diesel’ on TV. I don’t think you’ll see that sort of campaign again. There’s been a shift in priorities of perception that the dieselgate scandal has brought about.” said Archer. 

VW to become the leading electric car manufacturer 

To rebuild its previous reputation, VW has decided to wash off the stigma by building electric cars. The company aims at becoming the leading electric car manufacturer in the world, as announced last November.

VW plans to build almost 1 million electric cars each year by 2025. The uprising regulatory moves and with that, the extreme competition of electric and hybrid vehicles have given rise to the perfect storm. This storm is likely to cause the fall of diesel cars’ market share in this decade as also predicted by the UBS.