Year 12 IB Extended Essays 2018

1.0 - Industry Overview

Currently, the automotive industry is the 6th largest market in the world, thus a worthy aspect of investigation. As many are aware, the impacts of cars operating with petroleum are widespread. It affects air, soil and water quality significantly. The primary pollutant from vehicle emissions are carbon monoxide – a large contributor to global warming. To put this into perspective, North America alone has a hefty 28% of its total emissions from transport operating on petrol or diesel (shown in Figure-01). These confronting factors have urged global governments to take initiative in tackling this critical carbon problem. Policies addressing climate change are becoming more of a priority, growing stronger and more decisive. Indications of this transformation is already underway. For instance, in July 2017, developed countries like France and England have declared a mission to ban cars using gas and diesel by 2040. Additionally, China is aiming for 20% of cars sold in its own country to be powered with an alternative fuel by 2025. Also, Norway is the current leader in electric vehicle acquisition. A total of 29% of its registered cars in 2016 are either plug-in hybrids or fully electric. Other major with noteworthy electric vehicle market share are the Netherlands (with 6.9%), Sweden (3.4%), and the UK, China, and France – all 1.5% (Biswas, 2018). Rapid growth in electric portability, underpinned largely by improvements in battery technology, inclined ‘ The Economist’ to foresee the “death of the internal combustion engine.” These significant global- scale changes are making rapid innovation in the electric vehicle all the more important and competitive at this time.

Figure-01: Total US Greenhouse Gas Emissions by Economic Sector (2016) 1

1 US EPA. (n.d.). Sources of Greenhouse Gas Emissions | US EPA . [online] Available at: https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions [Accessed 17 Jul. 2018].

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