No doubt about it, electric vehicles are coming and coming fast. Production of EVs has ramped up in the last couple of years but there are many issues that need to be addressed before they become the everyday choice for consumers.

Richard Franza, PhD, professor of management at the Hull College of Business at Augusta University, emphasizes that the timing of EVs is contingent on a few critical factors. He states, "It's not a question of if they're coming, but how fast they will be here. One is the speed at which there is infrastructure built for them. There are still not a lot of places to charge a car. We need more charging stations. Eventually, EVs will be predominant."

Franza points out a second hurdle that affects the adoption of EVs, which is the speed at which the federal government moves on emissions requirements. These requirements will eventually cause consumers to phase out fossil fuel vehicles.

With eyes locally on the Hyundai Motor Group Metaplant America (HMGMA): a 2,923-acre complex in Bryan Co., where the Korean company and its partners will invest $5.5 billion to build electric vehicles, along with batteries and powertrain components to power them, Georgia has emerged as a leader in attracting EV manufacturers to establish their operations in the state. 

"Any time you build a manufacturing or assembly facility, you automatically get the suppliers around them. Even before Georgia got the vehicle manufacturers, we already had a battery manufacturer, so Georgia already has a good network for the automobile industry," explains Franza.

While the transition to EVs is gaining momentum, Franza expects other companies like Amazon, FedEx, and UPS, which have significant vehicle fleets, to follow suit and make the switch to EVs. These companies have more resources and capabilities to establish charging networks, further supporting the growth of the EV market.

The biggest question that remains is how long it will take before EVs become more prevalent on the streets. Franza acknowledges that the answer varies depending on who you ask, but there are several factors at play. Currently, electric vehicles account for less than 1% of the vehicles on the road. Franza suggests looking at leading indicators such as the number of gas stations compared to the number of charging stations and the production of combustion engines versus electric vehicles. When these ratios start to significantly shift, it will indicate a substantial change in the automotive landscape. However, Franza cautions that the transition may take longer than some predictions suggest, as there are multiple variables influencing the timeline.

This article appears in Connect Savannah | July 2023.