The shift from internal combustion to electric drivetrains is driven by economics as much as policy. As charging infrastructure expands and battery costs decline, the total cost of ownership continues to move in favour of electrification across passenger and commercial segments.
Why electric vehicles overtake internal combustion
The case rests on total cost of ownership, not preference.
Efficiency. EVs cost roughly 2–3 ¢/km in energy (at 15 ¢/kWh) against 10–12 ¢/km for a typical six-cylinder gasoline vehicle. Regenerative braking recaptures energy otherwise lost during deceleration.
Maintenance. Fewer moving parts and reduced brake wear lower lifetime cost.
Convenience. Home charging, quiet operation, and instant torque, increasingly matched by fast-charging infrastructure.
Sustainable source. Chargeable from solar, wind, geothermal; emerging integrated-solar and in-road wireless charging extend the model.
Environmental and health benefits. No tailpipe emissions; improved urban air quality and respiratory health.
Superior energy efficiency
EVs convert far more energy into motion: over 80% efficiency versus 20–30% for combustion.
Electric drivetrains. EVs deliver roughly 87–91% of original energy to the wheels; regenerative braking recaptures up to about 22% of losses.
Internal combustion. ICE vehicles lose roughly 75–84% to engine, drivetrain, and parasitic losses; only 16–25% reaches the wheels.
Global EV market trends
Uneven but rising adoption. Sales rising globally though some markets slow; commercial vehicles, buses, and two/three-wheelers reaching high electrification.
Beyond wealthy markets. Record sales in Thailand, India, Turkey, and Brazil as lower-cost models arrive; Chinese makers expanding abroad.
Battery cost and technology. Prices down sharply over the past decade, continuing on lower raw-material costs and manufacturing advances.
Energy that reaches the wheels, %
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Most gasoline energy is lost to engine and drivetrain inefficiency before it reaches the wheels.
Source: US Department of Energy (fueleconomy.gov).
Avalon invests across the mobility value chain, from manufacturers to the charging infrastructure and supply chains that enable electrification.
Discuss the Strategic Energy Transition Fund
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