Electric Car Sales Reached Record High in 2016

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Today, environmental issues have become a primary concern in society. With many policymakers, activists, and corporations alike, all seeking to inspire a greater movement to sustain the Earth, it is not surprising that the “green movement” is beginning to impact certain industries, specifically the automotive industry. According to Greentech Media, the electric car market hit a record high last year in 2016 when 750,000 electric cars were sold. There are 2 million electric cars being driven in the world today, meaning that almost half of the world's electric cars were sold last year! Although 2 million only accounts for 2% of the market for small, passenger vehicles, it is a large feat for the industry that just began scratching the surface in 2010.

China has led the electric car market, competing directly with the Detroit, Michigan automakers. Of the 750,000 electric vehicles sold last year, China sold 336,000, with much credit due to BYD, a Chinese automaker that has dominated the electric vehicle (EV) market and was responsible for roughly 1/3rd of the country's EV sales. Yet, according to electrek, BYD has recently seen sales drop 34% in early 2017 due to the Chinese government reducing electric vehicle subsidies and incentives, which have been the main reason behind the market’s rapid growth.

After China, Europe sold the second highest amount of electric vehicles, accounting for 215,000. Norway saw the highest EV sales in Europe, selling about 62,000 vehicles. Other European countries that have contributed to sales include the Netherlands, UK, France, Germany, and Sweden. The United States trailed China and Europe selling 160,000 vehicles last year.

Credit:  IEA

Credit: IEA

The International Energy Agency (IEA) is optimistic about future growth in the electric car market, projecting car sales between 9 million and 20 million by 2020, and sales between 40 million and 70 million by 2025. Since this is quite a leap from last year's three quarters of a million, many wonder if these numbers are attainable. The answer is that car sales are dependent on the green movement continuing to motivate consumers into seeking more environmentally friendly transportation, as well as automakers designing more practical and less expensive electric vehicles. 

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It's tough enough to buy a regular gasoline car without doing a ton of research, that it's even more difficult for some people to consider electric cars too. Until electric vehicles gain more popularity, the average person may not know enough about them to know how to purchase one of if it's the right vehicle for them. Below is a list of pros and cons provided by PluginCars to aid in decision making.

Cons of Electric Cars:

  1. Limited driving range. A main concern about EVs is that they have a limited driving range of about 80 to 100 miles before they need to recharge. This makes it difficult to take long trips with the car because charging stations may be many miles away and it takes hours to fully recharge.
  2. That leads to the next con, long charging time. However, the time it takes to charge an EV completely depends on the size of its battery. As a general measure for all EVs, 1 hour of charging can put about 20-25 miles back into the car.
  3. EVs are expensive. The average price for an EV is between $30,000 and $40,000, which is more expensive than a standard gas-powered vehicle of its size. However, most U.S. states offer incentives for purchasing electric cars, you can view the incentives by each state here.
  4. Minimal consumer choice. Many of the EV models look similar, and some people do not care for the typical design of an electric car. However, this has been an issue well-addressed by automakers and many new designs have been developed or are in the development process.

Pros of Electric Cars:

  1. They are quiet and quick. An EV delivers a much smoother and quieter ride, and electric cars possess more torque allowing the car to accelerate faster.
  2. EVs can be recharged at home. Electric cars can be easily charged in the confines of your home by simply plugging in the charger into an outlet and letting it charge overnight. In the morning it will be fully charged and ready to be driven.
  3. EVs are cheaper to drive. The cost per mile to fuel an electric vehicle is about 1/4th the cost of gasoline. Also, because the vehicle is electric, the only maintenance costs incurred are tire rotations and maintaining inflated tires.
  4. They do not produce carbon emissions. Of course, the largest benefit to electric vehicles is that they do not include a tailpipe that gives off harmful chemicals into the air, therefore they produce better air quality and benefit the environment.

 

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Clearly, there are both benefits and issues with electric cars, but with the ongoing movement to help sustain the environment, it is foreseeable that EV sales will continue to rise. Given the ongoing creation of new designs and longer lasting batteries from innovative companies such as Tesla, these vehicles are becoming more attractive and appealing to the consumer. It remains to be seen whether electric cars will take over the automotive industry in the future, but it is safe to say the market for electric vehicles will experience considerable growth in the upcoming years.


Electric vehicles are better for the environment and can help reduce our carbon footprint, however, they do not reduce the chance of getting into a car accident. If you or anyone you know has been in an accident of any kind, call The Michigan Law Firm, PLLC at 844.4MI.FIRM for a free consultation.

2017 Michigan Vehicle Registration Increase

Michigan drivers who had a birthday between January to May, might have noticed a slight change in their vehicle registration fee. The increase was due to Governor Snyder signing a bill in November 2015 that is supposed to help raise funds to repair Michigan roadways. The bill didn’t only raise registration fees but gas taxes as well, from 19 cents to 26.3 cents on top of sales tax, and the bill forces hybrid car and electric vehicle owners to pay an additional fee on top of the 20% increase. (Electric vehicle owners have to pay $135 and hybrid vehicle owners pay $47.) The increase in both registration and gas fees is expected to collect $600 million that will be used for road and transportation purposes.

How Are The Funds Being Applied?

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It was discovered that all of the money raised by these increased fees and taxes isn’t going to the state's transportation fund. The Mackinac Center for Public Policy reported that the transportation budget will only have $160 million and not the $460 million dollars that was estimated to be collected this year. This begs the question, “Where are the rest of the funds?" 

Supposedly, the remaining $300 million is instead being spent on Medicaid and school funding. Legislators state that the reason for the switch was because in previous years of tax revenues, money earmarked for these other causes, was scraped to pay the transportation funding costs.

How Do Drivers Feel About The Tax Hike?

The increase in taxes might have come as a disappointment to many drivers who share the same sentiment as Flint resident Sabrina Smith, 24, who said, “They don’t do anything around here, we still have busted roads and we’re still going to have busted roads."

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As a counterpoint, Bob Johnston from Holland, Michigan disagreed with Ms. Smith's sentiment and said, “I absolutely understand the need for it. There’s a huge loss in economic development if we don’t have good roads and infrastructure. We need good roads.”  

So, there seems to be mixed feeling about the tax increase among the citizens of Michigan. However, Michiganders should remember that having an up-to-date vehicle registration is required in Michigan. Any driver who is concerned about how much they need to pay to register their vehicle can find the cost on the Michigan’s Secretary of State registration fee lookup tool. Michigan drivers should also keep in mind that the Trump Administration released a $1 trillion infrastructure plan on June 13, 2017 that might affect the current fees in place.

Though all of the money raised in the tax increase won't go toward infrastructure repair, Michiganders can still expect to see plenty of road rebuilding, bridge repairs, and other construction work this Summer. As such, it is important that motorists, bicyclists, and pedestrians be extra cautious when traveling around construction sites as construction motor vehicle accidents are likely to occur. By keeping alert at construction sites, obeying construction traffic signs, and by driving more slowly and extra cautiously, construction site car accidents may be avoided.


Michigan motorists may have to redo going their budgets this year thanks to an increase in registration fees and fuel taxes. Although many drivers will hate the increase, it comes as a trade off to higher auto repair costs due to the crumbling infrastructure of Michigan roads. If you or someone you know have been injured in a motor vehicle accident due to damaged roads or damaged infrastructure, call The Michigan Law Firm, PLLC today for a free consultation, at 844.4MI.FIRM.