Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134

Journal of Mechanical Engineering Research and

Developments (JMERD)
DOI : http://doi.org/10.26480/jmerd.04.2019.127.134
ISSN: 1024-1752
CODEN : JERDFO

RESEARCH ARTICLE
A REVIEW ON CHALLENGES AND OPPORTUNITIES OF ELECTRIC VEHICLES (EVS)
M. Faizal1,2*, S. Y. Feng2, M. F. Zureel2, B. E. Sinidol2, D. Wong2, G. K. Jian2

1EngineeringDivision, ADP, SLAS, Taylor's University Lakeside Campus, 47500 Selangor, Malaysia.
2MechanicalEngineering Program, School of Engineering, Taylor’s University Lakeside Campus, 47500 Subang Jaya, Selangor, Malaysia.
*Corresponding Author Email: mohdfaizal.fauzan@taylors.edu.my, drfaizalfauzan@gmail.com

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited.

ARTICLE DETAILS ABSTRACT

Article History: The ongoing technological development in the automotive industry has since prompted the growth in
environmental and energy efficiency awareness. Electric vehicles (EVs) are seen to be potential alternatives for
Received 20 June 2019 conventional internal combustion engine (ICE) vehicles as they possess numerous advantages. In this paper, the
Accepted 29 July 2019 challenges and opportunities of EVs in mass market deployment are reviewed. The challenges are categorized based
Available online 01 August 2019 on the development of a sustainable business model which include the economical, technological, social, and
environmental aspects. The influences of government policies on the adoption of EVs are also discussed. Future
trends of EVs in the market are also projected to year 2030. Based on the reviews and findings, it is concluded that
the main challenges for EVs to penetrate the existing market include the market environment, technological
insufficiencies and social drawbacks. Recommendations are then made according to the respective challenges to
promote the market growth and performance of EVs, thus progressing towards a more sustainable future.

KEYWORDS

Charging infrastructures, Economies of scale, Electric vehicles, Market penetration, Renewable energy.

promising alternative to vehicles using ICEs, and will potentially replace

1. INTRODUCTION ICEs in the near future [12]. To promote the market penetration of EVs,
new policies have been introduced and this has contributed to the rise of
The awareness and concerns for energy conservation and environmental
EVs in the market recently [13].
sustainability have been growing over the years globally. Human activities
that produce greenhouse emissions have impacted the environment in a
Global sales of EVs have exceeded 1 million units in year 2017, where it
severe manner [1-5]. In the automotive industry, internal combustion
was a significant growth of 54% compared to new EVs sales in 2016. The
engines (ICEs) have been powering vehicles for centuries, which rely on
largest EVs market is China, where it accounted for more than half of the
fossil fuels and produce harmful emissions. Meanwhile, electric vehicles
global EVs sales. As shown in Figure 1 below, the cumulative global sales
(EVs) have arisen and they possess vast advantages as compared to
of EVs have surpassed 3 million units in 2017, which China contributed
vehicles powered by ICEs. EVs have instant and greater acceleration,
40% of the total sales. Also, it can be noticed that United States is the
higher energy efficiency, and have the potential to reduce greenhouse
second largest EVs market. These statistics have shown that EVs market is
gases and air pollution as they produce no emission [6-8].
growing rapidly on a global level.
In general, EVs can be categorized into battery electric vehicle (BEV),
hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV) and
fuel cell electric vehicle (FCEV). BEV is driven by electric motors powered
by batteries, while HEV and PHEV is driven solely by ICE, assisted by
electric motors. FCEV is also driven by electric motors but powered by a
fuel cell stack [9]. This paper focuses solely on BEVs only, and the EVs
discussed in the paper are referring to BEVs.

Compared to the powertrain of ICE vehicles, EVs utilize systems with

higher energy efficiency where energy waste is reduced by employing
regenerative braking. While the vehicle is braking, the system can harvest
kinetic energy of the vehicle and recharges it back into the batteries via
motors. Also, EVs do not consume any energy when it is stationary as
compared to ICE vehicles which fuel is consumed when it is in idle [10].
Moreover, EVs do not require a gearbox to transmit power and propel the
car as electric motors can produce peak torque across their speed range.
This reduces energy loss and the vehicle weight as gearbox is not required,
thus making EV more energy efficient. The significance of EVs in reducing
greenhouse gases have been studied extensively, where a group scientist
found that for the entire life cycle, EVs emit 30-80% less greenhouse gas
compared to ICE vehicles [11]. Thus, EVs have been recognized as the most
Figure 1: Cumulative global sales of EVs from year 2013 to 2017 [13].
Although EVs are now growing in the industry, hurdles including high
purchasing cost, limited driving range, lack of charging infrastructure and
long charging time are holding back its market penetration. Energy
storage system (ESS) of EVs also faced challenges regarding to its safety,
cost and management system in efficiently storing and providing energy.
The advancement of energy storage for EVs is currently influenced by the
challenges mentioned [14]. This paper reviews and discusses the
challenges and factors that affects the market growth and penetration of
EVs. Objectives of this paper are as follow: to identify the factors of the
challenges from different aspects, to predict the future trend of EVs in the

Cite The Article: M. Faizal, S. Y. Feng, M. F. Zureel, B. E. Sinidol, D. Wong, G. K. Jian (2019). A Review on Challenges and Opportunities of Electric Vehicles (EVS). Journal
of Mechanical Engineering Research and Developments, 42(4) : 127-134.
 Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134

automotive industry, and to provide recommendations for effective

diffusion of EVs in the market.

2. ECONOMIC

Economic challenge is one of the major challenges holding back the growth
of EVs in the world. Even in developed countries, there are difficulties in
the popularization and mass adoption of EVs. In general, economic
challenges can be further categorized into 3 different aspects.

2.1 Electric Vehicle

The EV itself exhibits a lot of economic challenge. The underdeveloped EV
has caused various issues and it is very difficult to compete with cheaper
conventional vehicles which operate on ICEs. To promote EVs, it requires
help from many parties especially the government. The policies of a
country will greatly influence the market of EVs, however it comes with a
lot of economic impacts as well. For example, China, as the second largest
economy in the world, plays an important role in promoting EVs to the
world [15]. However, as one of the largest oil-producer in the world, the
development of EVs will greatly impact the petroleum industry in China,
thus indirectly affect their economy [16]. Even though gasoline and diesel
are more expensive than electricity, the immaturity of electric vehicle
systems has caused the price of EVs to be higher due to high initial
investment [17]. Since the systems of EV is not matured enough and most
of the assembly process are to be done manually, mass production of the
expensive parts of EV are still not economically justified, causing the
selling price to be expensive in order for the company to maintain a
healthy profit margin [18].
To promote EVs for the mass market, the price needs to be reduced and
the development of EV technologies must be done in quicker pace. The
high EV selling price is the major barrier for it to penetrate the existing
market [19]. A group researchers found that even a slightest reduction in
the retail price of EV would greatly increase its competitiveness with ICE
vehicles [20]. He also found that the sales of EV would improve by 4% with
just 1% drop in retail price. In short, the retail prices of EVs are currently
still considered very high as compared to conventional ICE vehicles.
Therefore, it is hard to promote EVs unless more efforts are taken to
develop the technologies in order to generalize the usage of EVs.
2.2 Battery
Cost of batteries has always been the concerned issue disregards its
applications. In recent years, battery prices have been significantly
reduced while its energy density has been increasing gradually as shown
in Figure 2 below. This has facilitated the growth of EVs in the market and
it can be observed from Figure 1 above. Although battery costs have been
reduced, manufacturing batteries in mass scale economically is still one of
the challenges, as expensive materials and advanced processes used have
resulted in high cost of the batteries for EV applications. Current
technologies are not capable of producing a high-performance battery
using conventional materials. Batteries used in EVs are required to hold
high capacity of energy charge to enable longer range. Thus, the materials
used in constructing the batteries in such application have to be of certain
quality, resulting in higher cost [21].
The lithium-ion (Li-ion) batteries used in EVs present a very concerning
supply chain issue. It has been reported that the extraction of cobalt, the
essential component of the rechargeable Li-ion batteries, is linked to child
labor [22]. The price of cobalt has been quadrupled since the demand for
the minerals has been rising rapidly in recent years. Two third of the
world’s cobalt are mined by Democratic Republic of Congo, (DRC) and with
children often working alongside with the adults in artisanal mines, it
raises ethical dilemma as well as economic challenges for multinationals
[23]. With laws and policies introduced to improve the standards of ethical
mining, the supply of the mineral will reduce while the demand stays high,
resulting in further increase of the price of cobalt. As one the core
materials to produce the batteries for EVs, the price fluctuation of cobalt
is the reason why EVs cost higher than conventional ICE vehicles and
because of that, consumers feel reluctant to try and adopt EVs.
Figure 2: Progress of battery energy density and cost [13].
The challenge of the development of batteries is almost similar to that of
the EV economic challenge mentioned above. Li and Ouyang shows that by
reducing the battery costs of EV, it would help to decrease the total
expenditure of consumers and allow them to afford higher charging price
for the battery [24]. The high cost of batteries is the reason the price of EVs
will remain expensive than that of conventional ICE vehicles in near term
even if government purchase subsidies were offered in many countries.
The only way to reduce the price of EV is to improve and expand the
production line to further ramp up the production volume of EV in order
to provide a more affordable price to the market. In some study, they has
indicates that for EVs to reach a mass market without purchasing
subsidies from government, the cost of battery must first be reduced
significantly [21]. Adepetu and Keshav also suggested that the cost of EVs
is more important than the overall performance and it is more crucial to
reduce the cost than improving the performance of EVs [25]. However, for
all of these to happen, the sales of EVs need to be improved significantly
which is unlikely since battery technologies are yet to be improved.
2.3 Infrastructure
Charging infrastructures for EVs can be categorized according to their
accessibility, which are public, semi-public and private charging
infrastructure. Public charging infrastructure is open to the public and can
usually be found at public parking area while semi-public charging
infrastructure is only accessible by a certain group of people. Private
charging infrastructure refers to the one that is installed in a private
garage or household. From Figure 3 below, it can be seen that private
charging infrastructures has outnumbered public charging infrastructures
as it is more accessible and preferred by EV users [9,26]. However, it is
known that public charging infrastructures are crucial to the adoption of
EVs and also overcoming the range anxiety of EV users [27].
Figure 3: Distribution of charging infrastructure in 2015 [13].
The economics of public charging infrastructure plays an important role
in the market penetration of electric vehicles (EVs), where it is currently
one of the biggest challenges holding back the market growth of EVs. In
general, high capital costs and low profitability due to low adoption rate
has declined its economic performance. Schroeder and Traber have found
that high initial investment costs and low utilization rate have caused low
profitability for the charging stations in Germany [28]. Also, the
profitability of the charging stations is influenced by the charging price,
where Li and Ouyang reported that minimum raise of 25% on the charging
price is necessary to make the charging stations in China to be profitable
[29].
To better understand the economics of charging infrastructure, the direct
factors affecting its performance are identified, which include number of
EVs, charging demand, charging price, electricity price, location, ground
rent, number and unit cost of charging piles, maintenance cost, operation

Cite The Article: M. Faizal, S. Y. Feng, M. F. Zureel, B. E. Sinidol, D. Wong, G. K. Jian (2019). A Review on Challenges and Opportunities of Electric Vehicles (EVS). Journal
of Mechanical Engineering Research and Developments, 42(4) : 127-134.
 Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134
subsidy and construction subsidy [9]. Charging price, subsidy for
construction and operation, quantity of charging units is linear with the
profit of charging infrastructure, while factors like charging demand,
geographical location and number of EV are in complex interactions with
the profit. For instance, the income and quantity of charging units are
greatly dependent on the charging demand, which it will affect the capital
cost of the charging infrastructure [30]. According to a study, for charging
stations to stay profitable, they should be located in strategic locations or
urban areas primarily since they are hardly profitable in rural areas due
to differences in charging demand [31]. Installing charging infrastructures
in city centers and urban areas give good accessibility to EV users,
however it usually comes with higher ground rent. From another
perspective, in order to ease range anxiety of EV users, charging
infrastructure should be located in both urban and rural areas [32,33]. It
was found that charging stations in Stuttgart are under-utilized and not
operated economically due to its high density in the same region [31]. This
causes investors to be hesitant in investing on public charging
infrastructures [34]. Other than that, at such a preliminary stage, policy
makers and investors are fully aware that there is no substantial business
model for public charging infrastructures, which would influence their
investment decision [35]. The most significant factor that influences the
charging demand and the profitability of charging infrastructure is the
number of EVs. In general, the greater the number of EVs, the greater the
charging demand, thus contributing to the profit of charging infrastructure
and sustaining its business model.
The indirect factors affecting the economics of charging infrastructures
include the technologies of charging infrastructure itself, EV technologies,
battery technologies, psychological factors and behaviors of EV users, and
government policies [9]. The interactions between direct and indirect
factors are significant and their influences on the charging infrastructures
are identified. For instance, the location and distribution of charging
infrastructures are affected by the range of EVs, which depends on the
technologies of EV and battery. Meanwhile, the advancement of EV
technologies could increase its driving range, thus enhancing market
penetration by easing range anxiety [36]. It is also known that range
anxiety can be reduced by increasing the density of charging
infrastructure. The technologies of the charging infrastructures itself also
influence the charging time and thus the number of EVs. In addition, EV
and battery technologies are closely related to its range, where the driving
range of EV is associated to the cost reduction of charging infrastructure
[37]. To sum up, in-depth researches and studies must be conducted on
the economics of charging infrastructure in order to boost its installation
and growth, by providing feasible and viable solutions on improving its
economic performance. Market penetration of EVs can also be further
progressed by building charging infrastructures based on demand-
oriented basis [38].
3. TECHNOLOGY
3.1 Electric Vehicle
From technological point of view, there are several factors that may hinder
the use of electric vehicles. The energy storage system which is required
by every electric vehicle has become one of the major concerns towards
the present electric vehicle technology. The energy storage system is an
essential part within an electric vehicle as it stores and delivers power to
the vehicle. The manufacturing and development process of the energy
storage system is one of the many challenges encountered. Manufacturing
and development of energy storage systems for electric vehicle has
become an issue due to availability of raw materials. This is because the
energy storage system in an electric vehicle utilizes high grade materials
to ensure high performance and provide safe operation without corrosion
and explosion [14].
Besides that, another challenge that is faced by the energy storage system
in an electric vehicle is its energy management. EVs can operate on power
obtained from batteries, which are part of their energy storage system.
After each life cycle of the energy storage system has been depleted, it will
then need to be recharged with the use of temporary energy resources.
The energy storage system can be recharged by multiple energy resources.
Cite The Article: M. Faizal, S. Y. Feng, M. F. Zureel, B. E. Sinidol, D. Wong, G. K. Jian (2019). A Review on Challenges and Opportunities of Electric Vehicles (EVS). Journal
of Mechanical Engineering Research and Developments, 42(4) : 127-134.
A modern electric vehicle system is designed to be able to manage all of
the possible energy resources effectively given the availability of the
energy [14]. Another major issue with the current energy storage systems
is the size and cost. Out of the total cost of the electric vehicle, one-third is
dedicated towards the energy storage system. The cost of the energy
storage system is high because it includes the cost of materials, packaging,
power conversion, replacement, operation, maintenance as well as labor
[14].
3.2 Battery
The use of Li-ion batteries has been increasing in popularity and has
become the dominant battery technology for the automotive industry [39].
For a smooth operation, every energy storage system needs to be
protected and maintained. Electric vehicles that are equipped with Li-ion
batteries are faced with safety and cost issues that are related to thermal
effects in the batteries [40]. In electric vehicles, the Li-ion batteries need
to be protected from overcharging and over discharging. This is because it
is proven that when the Li-ion battery is over discharging, high rates of
heat generation and electrochemical reaction occurs and thus the
batteries are prone to an increase in temperature [41]. The increase in
temperature within the Li-ion batteries is the main cause of safety issues
such as swelling, thermal runaway, electrolyte fire and explosions [42].
Therefore, the application of Li-ion batteries within electric vehicles still
require further analyzing and understanding of the thermal effects in the
batteries under different conditions.
To ensure that thermal effects of the EV battery is within operating range,
the materials involved in the production of the battery needs to be
considered. The nickel content in nickel manganese cobalt (NMC) based
cathodes determines the energy density of the battery. A battery with
higher energy density has larger energy capacity [43]. Thus, adding more
nickel would reduce the production cost of batteries; comparing the per
unit energy stored. It was shown that increasing the nickel content to
about 60% of the cathode will bring a decrement of about 7% in the
production cost. However, increasing the nickel content also affects the
thermal stability of the battery. Considering nickel content as an alternate
material to EV battery production such as cobalt could reduce the overall
cost [44]. This also means that the market price of EVs will not depend on
the uncertain price of expensive rare material.
3.3 Infrastructure
As mentioned, one of the biggest challenges for EV to penetrate the
existing market is the lack of public charging infrastructures [9]. Since EVs
are powered by energy storage like batteries instead of fuel, they have to
be recharged. This in return requires extra energy to be delivered from the
existing power grid and power stations. Thus, renewable alternatives in
generating energy like wind and solar energy need to be utilized [45]. This
means that the charging price could be influenced by the technologies used
in the power grids and the charging infrastructure itself. In the meantime,
charging technology could affect the charging time and thus the number of
EVs in the market [46].
According to charging settings, charging infrastructures can also be
categorized into slow charging units (SCUs) and fast charging units (FCUs).
SCUs recharge using alternating current (AC) level 1 (< 3.7 kW) and AC
level 2 (>3.7 kW & < 22 kW) [8]. FCUs include units that recharge with
three phase AC (43 kW), direct current (DC) charging units (< 200 kW) and
inductive charging units [47]. FCUs are currently considered as the
efficient and effective method to reduce range anxiety of EV users by
recharging the battery in a short time. Most of the EVs in the market come
with lithium-ion (Li-ion) batteries, which the charging rate of Li-ion
batteries is influenced by their environmental conditions, notably
temperature. To avoid negative effects on the battery cells, the charging
rate is limited by the charging system under low temperature conditions
[48]. This pose another challenge for EV users in cold regions or during
cold seasons.
One of the technological challenges of charging infrastructure is the
 Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134

integration of EVs charging systems and energy storage system (ESS).
Different charging standards have been established by various
organizations and bodies, where the safety, rated power and cost of
different charging method were considered. The equipment and
configuration of charging infrastructures varies based on the voltage and
frequency of the power grid, and standards of different countries.
Currently, the most established standards for EV charging infrastructures
is European standards, where it aims to achieve interoperable plugs and
charger systems to promote market growth of EVs [49].
4. SOCIAL
The social aspect of EVs play an important role in the economic growth as
it covers the indirect factors that keep potential consumers from adopting
EVs. These factors generally include the technological development of EVs,
psychological factors, policies and customer behaviors [9]. As stated, the
success of EVs is a socio-technical challenge which depends on both the
consumers’ attitudes and the performance of the EVs simultaneously [50].
Psychological factors include the consumers’ perception on the cost,
benefits as well as their attitude towards new technologies and social
influence [9]. One of the psychological factors that affect with EV drivers is
range anxiety. Range anxiety is a phenomenon where EV drivers are in a
continuous state of worrying about the possibility of being stranded with
a discharged battery due to its limited range [51,52]. A group researchers
carried out a study on EV adoption barriers which triangulated data
gathered from a survey with almost 5000 respondents, semi-structured
interviews with experts from around 200 institutions and 8 focus groups
across 17 Nordic cities [53].
worry that there will be no available fast charging station when needed.
This will cause consumers to less likely purchase EVs in the first place [59].
With this, increasing the number of charging stations in highly populated
areas is one of the methods that can encourage more people to buy EVs.
The range anxiety of consumers can also influence the location of public
charging infrastructures [60]. With more severe consumers’ range anxiety,
having a higher density of public charging infrastructures is required. On
the other hand, user charging behaviors must be studied in order to
identify optimal locations for the charging infrastructures. A comparison
between charging behaviors of early adopters and refueling behaviors of
potential EV users should also be done to ensure strategic charging
locations.
Consumers’ attitude is a major influence in their decision on whether they
should invest in EVs. In the case of EVs, their attitude towards new
technologies has a huge influence in their decision. Although there is a
significant amount of early adopters investing in EVs, majority of
consumers are reluctant in adopting new technologies [61]. A probable
explanation for this is that consumers are sometimes bothered by the
batteries lifecycle cost of EVs [62]. The perception of consumer towards
EVs being environmentally friendly also influences its sales. It was shown
environmental friendliness of EVs are not the main concern of consumers
when buying EVs [61-63]. Adepetu and Keshav found that most people can
be satisfied with the current driving range provided by the electric
vehicles in the market [25]. However, consumers tend to have irrational
demands of range and can be easily influenced by their range anxiety [9].
With that in mind, providing extensive information and promoting EV test
drives may help encourage consumers to change their perception on EVs.

5. ENVIRONMENTAL

The utilization of EVs instead of ICE vehicles enhances the quality of the
environment. EVs can be said to be environmentally friendly as it is
powered by batteries and thus produces no tailpipe emission. The
combustion of petroleum within the ICE emits toxic chemicals into the air,
these emissions are harmful to human and the environment. However, the
power generation process for charging EVs also produces greenhouse gas
emissions. The emission of greenhouse gases into the atmosphere causes
global warming [64].
The drive concept of electric vehicles is based on the usage of electrical
energy, therefore there will be reduction in petroleum demand. Hence,
energy storage systems in electric vehicles pose minimal impact towards
Figure 4: Survey results of disinterest in EVs from the public [53]. environmental pollution. However, the processing and production of
energy storage systems as well as the disposal of electrochemical batteries
Figure 4 above shows that substantial evidence was found on how range
may cause respiratory, pulmonary, and neurological diseases. Therefore,
concerns continue to be one of the most frequent reasons on why
safety measures must be taken into consideration during the production
consumers are not interested in EVs, or at least state so. Although most
of energy storage systems especially the batteries [65].
people drive less than 65 kilometers a day which is well below the full
Since EVs produce zero tailpipe emission, it is important to understand
charge mileage of 165 kilometers in most production electric vehicles, it is
and identify the possible environmental impact resulted from electrical
still not practical for road trips or emergencies that require a certain
power generation. The batteries in an EV requires charging once the
amount of distance to be travelled at a short notice [54]. This is because a
batteries capacity have been depleted and this can be done at the charging
full charge usually takes around 8 hours unless the driver has access to
station. Charging stations acquire electrical energy to recharge EVs from
fast charging stations which are currently in short supply [55]. In contrast,
local power grids, where high level of carbon is emitted into the
the mileage on a gasoline powered vehicle is higher and can be filled up
environment during power generation. The CO2 intensity produced from
with fuel in a matter of minutes, allowing drivers to have ease of mind
an electrical grid in Iceland from January 2011 until June 2015 is shown in
without range anxiety. This creates a barrier preventing potential
Figure 5, where each plot point represented the average CO2 intensity
consumers from switching to EVs. The use of fast charging units such as
produced for each day [66].
AC 43kW charging units, DC charging units, Tesla Super charging units and
inductive charging units are expected to be efficient and practical in
overcoming this barrier as they allow shorter charging time and longer
journeys [4]. Fast charging infrastructures are not only necessary in
achieving a reasonable level of service, but also in minimizing social cost
[56].

Although it is possible to recharge EVs with the use of private charging

infrastructures, the availability of public charging stations will influence
the range anxiety of drivers and is important for large-scale diffusion of
EVs [57]. As studies have shown, the lack of charging stations has become
one of the crucial obstacles faced by EVs when compared to ICE vehicles
[58]. The lack of charging infrastructures may cause long queues in
charging stations and further develop range anxiety in EV users as they Figure 5: CO2 intensity produced from an electric grid from 2011 –
2015. [66]
Cite The Article: M. Faizal, S. Y. Feng, M. F. Zureel, B. E. Sinidol, D. Wong, G. K. Jian (2019). A Review on Challenges and Opportunities of Electric Vehicles (EVS). Journal
of Mechanical Engineering Research and Developments, 42(4) : 127-134.
 Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134
They have also concluded that when more energy (kWh) is consumed the
total grams of CO2 produced is increased [66]. It can also be said that the
CO2 emission is also dependent on the charge consumption of each
individual EV which affects the total energy consumption. Significant
differences in the environment will be noticeable due to the accumulated
emission of CO2 over the lifetime of an EV [66]. Therefore, EVs are not
totally clean from emission throughout its life cycle but with the
advancements in manufacturing technology and utilization of alternative
energies, the overall environmental impact can be reduced.
6. GOVERNMENT POLICIES
Due to the need for governments and industries to address the impact of
greenhouse gas (GHG) emissions that have been building over the years
and the realization of the potential of EVs, new policies regarding EVs have
been introduced. Countries such as the USA, Norway, China, Germany and
Brazil have started to implement methods that are divided into three
categories; incentives, regulation and subsidies to assist the market
penetration of EVs [67,68]. Without the help of these policies, most people
would not consider purchasing an EV since they are priced a lot higher
than ICE vehicles and the lack of charging stations throughout the
countries. For example, the US Department of Energy have built over
17,000 charging station in correlation to the introduction of the EV Project
and the ChargePoint America project [69]. Furthermore, the Idaho
National Laboratory used newly built network of charging stations to
monitor the participation and use of EVs throughout the states.
In 2016, President Obama announced a new plan that helps the nation in
adopting EVs. This plan involves the installation of additional charging
infrastructures and, investment in the advancement of EV technology and
manufacturing [70]. States in the US such as California have used
infrastructure to promote the transition of their residents into achieving
the objective of reaching 1.5 million EVs on the road by 2025. As a start,
they have reportedly installed over 1,500 charging stations overseen and
supported by the California Public Utilities Commission and approved by
the Southern California Edison [71]. Other states such as San Diego have
similarly approved the installation of 3,500 chargers on 350 locations with
companies such as San Diego Gas & Electric and PG&E backing up the
project [52,53]. Companies such as Nissan Motor Ltd. has also made their
move of installing their own charging stations as part of their new
marketing strategies [54-56].
Governments have been implementing policies regarding the adoption of
EVs with incentives, regulations and subsidies to promote the use of EV in
their respective countries. With the help of these incentives, people will be
encouraged to purchase EVs. In fact, 30 percent of the EV sales have been
found to be supported by the federal tax credit as shown [72]. The tax
credit here refers to the tax incentive that consumers get when they
purchase EVs. It allows the taxpayer to deduct some of their taxes payable
to the state. Moreover, it is found that tax rebate also contributes about 26
percent to the sales of EVs as shown [73]. This shows evidence that there
is a relationship between the incentives and the rate of sales of EVs
[52,55]. However, Egbue and Long have also pointed out different factors
that affect the EVs adoption rate and that the policies as mentioned, have
little contribution to the market penetration of EVs [56].
Their reason is that if the customers have little confidence or interest in
the current EV technologies they simply would not consider it as an
alternative to ICE vehicles. This also means that it is important for the
government to use social and media influences to help with the EV
adoption rate [56, 57]. The effect of different types of incentives provided
shown that sales tax waiver provides a more significant boost to the EVs
sales than income tax credit. ICE vehicles produce a lot of emissions and
therefore, regulations policies that involves the fossil fuel tax and
controlling the amount of ICE vehicles on the road and other emission
regulations may indeed boost the market penetration of EVs [20,78]. In
Japan, a study has been conducted which states that advancement in the
technology of batteries and the EVs provides a significant increase in sales
[84]. Also, in other studies, they concluded that the government support
on the R&D and EV technology is more important than the marketing sales
itself [85].
Cite The Article: M. Faizal, S. Y. Feng, M. F. Zureel, B. E. Sinidol, D. Wong, G. K. Jian (2019). A Review on Challenges and Opportunities of Electric Vehicles (EVS). Journal
of Mechanical Engineering Research and Developments, 42(4) : 127-134.
There are also a few studies suggested that the increase of fuel price can
affect the EVs sales in several ways. Diamond showed that the increases in
fuel price directly affects and contributes to the EVs adoption rate over the
years [81]. Adepetu and Keshav concludes that decrease in fuel price
weakens the cost advantage of EVs unless they adopt the emission rate of
EVs and gasoline vehicles [86]. Supporting Diamond’s statement, Sullivan
also concluded the same outcome if gasoline increases in price, customers
may start to look into EVs as an alternative in the long run [19]. Without
the support government policies, the vast increase in EV sales and
utilization rate could not happen.
7. FUTURE TRENDS
EVs is predicted to be the future of transportation as its market share in
the industry has been growing rapidly thanks to increased investment in
the recent years. With the promotion of EVs for mass market diffusion, the
adoption rate of EVs is expected to increase exponentially along with
reduction in cost due to economies of scale. With the increased demand,
more investment can then be made in the research and development of
EVs technologies, thus accelerating global EV transitions. International
Energy Agency (IEA) has projected the global stock increment of EVs from
3.7 million in 2017 to 13 million by 2020 and eventually reaches 130
million in 2030. On the other hand, the sales of EVs are estimated to have
a growth of 24% averagely throughout the projection period. The sales
would increase from 1.4 million in 2017 to 4 million of EVs by 2020 and in
time reaches 21.5 million of sales by 2030 [87].
As battery technology advances over time, the capacity of the battery also
increases. This means that EVs in the future are expected to have longer
ranges. Currently, the Tesla Model S P100D hold the record of having the
longest range (over 500 km on a single charge) amongst other EV
manufacturer companies. An average EV however, is estimated to have
about 180 km of range on a single charge. In the future, the battery
capacity will increase to about 70-80 kWh which will allow the average EV
to have a range between 300 km to 400 km. Moreover, reported analysis
shows there will be an expansion in the battery supply market in the
coming years. The analysis also shows that by 2025, the construction of 10
new factories with manufacturing capabilities of Tesla’s Gigafactory needs
to be implemented in order to keep up with the demand [87].
Demand for materials is also expected to increase, especially copper and
rare earth materials used in electric motor and batteries. The rapid growth
of battery capacity combined with the limited lifetime of EV batteries
imply that more raw materials will have to be extracted from the
environment. Due to the demand growth of Li-ion batteries, materials
including nickel, cobalt and lithium are also expected to experience major
increase over the next decade. Thus, investment on the extraction and
production of the mentioned material must be expanded to reduce the risk
of supply bottleneck [87].
8. CONCLUSIONS AND RECOMMENDATIONS
This paper reviewed the challenges and opportunities of electric vehicles
(EVs) in mass market deployment. The challenges can be divided into four
major categories according to various aspects, namely economic,
technology, social, environmental aspect. Economic challenges are the
major challenges reviewed, where high selling price of EVs have
obstructed the mass adoption of EVs. Due to low EV adoption rate, high
initial investment and low profitability of public charging infrastructure
have downturned its economic performance and sustainability of its
business model. For technological challenges, the manufacturing of energy
storage system in EVs are still not economically justified, while thermal
instability of Li-ion batteries under extreme environmental conditions is
yet to be addressed. Also, energy density of current battery technologies
is still much lower than fuel, resulting in limited driving range. Renewable
energy generation using advanced technologies is also required to supply
enough electricity to the power grid to cater for increasing charging load.
Moreover, from social aspect, range anxiety has raised negative
perceptions of the society towards EVs, given that EVs have limited range,
long charging time and insufficient charging infrastructure. Although EVs
produce zero tailpipe emission, environmental challenges of EVs include
 Journal of Mechanical Engineering Research and Developments (JMERD) 42(4) (2019) 127-134
greenhouse gases emitted from power generation to recharge the
batteries. Manufacturing process and disposal of the batteries after its
service life may also cause harmful pollution to the environment.
To accelerate the mass diffusion of EVs into the existing market,
recommendations are made in accordance to the challenges identified.
The high price of EVs is the main concern of consumers when considering
the type of transportation vehicles to purchase. Government plays a very
important role in reducing the price of EVs and instead of just promoting
the advantages of buying an electric vehicle. Governments should
collaborate with EV manufacturers to reduce the price of EVs by reducing
the tax imposed on the raw materials required in manufacturing the
components of EVs, especially the battery systems. Other than that,
incentives such as tax credits and tax exemptions could be offered to
consumers based on the battery capacity and vehicle size to encourage the
purchase of EVs. Besides, more funds should be allocated towards the
research and development of EV technologies to speed up the
development of EVs. Since more resources could be made accessible and
more research can be done, EV technologies especially the battery density,
capacity as well as its lifecycle can be further advanced. With the
development of new technologies, mass production of EVs could be
achieved easily thus further reducing the high price of EVs.
Besides, the charging infrastructures for EVs is another main concern as
well. Governments should cooperate with private sectors to increase the
number of public charging infrastructures by providing incentives as well
as subsidizing the operating and maintaining cost of the infrastructures.
Instead of just installing more charging infrastructures, the charging
behavior of EV users should be studied and researched comprehensively
to determine the most strategic location. On the one hand, in-depth
researches and studies must be conducted on the economics of charging
infrastructure in order to boost its installation and growth, by providing
feasible and viable solutions on improving its economic performance. In
addition, the integration of technology between EVs and the charging
infrastructures must be standardized to ease the diffusion of EV into the
market. For example, universal charging port with high charging efficiency
should be utilized and made compatible to all EVs of different
manufacturers.
Since the penetration of EVs into the mass market represents a socio-
technical challenge, social challenges must be studied and understood.
Due to the limited range of EVs as compared to ICE vehicles, range anxiety
amongst potential consumers is developed. Range anxiety has been
proven to be one of the main reasons why potential consumers have
shown disinterest in EVs. To ease range anxiety, the charging time of EVs
must be reduced significantly by employing more fast charging units.
Alternatively, as consumers may be misinformed or have negative
perceptions on EVs, mass communication on extensive information of EVs
and providing test drives may change their mind, contributing to
increased sales of EVs.
Although EVs do not produce tailpipe emission, the entire lifecycle of EV
still leaves carbon footprints especially during the recharging of batteries.
This is because the power grids must supply extra electrical power to the
increased demand of energy. To address this, renewable energy
alternatives like solar, wind, and hydroelectric energy can be utilized to
cater the extra power demand mentioned. Government bodies may also
provide incentives for the operations of these renewable power plants.
To sum up, with proper execution of the mentioned recommendations, the
price of EVs could be reduced, and the ownership experience of EV users
can be enhanced as battery range is increased with reduced charging time.
As a result, adoption rate of EVs will increase and carbon emissions can be
reduced, thus ensuring sustainable future of the environment.
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