The electric car industry could be crushed after oil prices plummet?

Today we will talk about the impact of low oil prices on the electric vehicle industry.

If low oil prices persist for a long time, do electric cars have a future?

We all know that China's electric vehicle industry has developed very fast in recent years. At present, the number of pure electric vehicles in the country is about 3.1 million, and there are more than 8 million in the world. This industry is growing at a rate of more than 50% every year.

In the current downturn of the automotive industry, the development of electric vehicles is very impressive. However, the current plunge in international oil prices has had a very strong impact on the electric vehicle industry.

There is no doubt that there is an alternate relationship between fuel cars and electric cars. The cheaper the price of gasoline, the lower the willingness of consumers to buy electric cars, and the less money will flow to this industry. Otherwise it will be more.

At present, a liter of petrol in China is more than 5 yuan. We can afford a car. If a liter of gasoline rises to 50 yuan, I believe that most people will give up fuel vehicles and choose electric vehicles or other new energy vehicles.
Of course, on the other hand, if one liter of petrol falls to 5 cents, I think everyone will be more fond of fuel cars.

Of course, it is impossible for our country's gasoline to fall to 5 cents, because there is a requirement in our refined oil mechanism that the international oil price drops below 40 US dollars, and the refined oil price in our country is no longer reduced.

But internationally, many countries have very low oil prices, such as Venezuela, one cent of a litre of gasoline, 11 cents of Iran, and more than 30 cents of Saudi Arabia. There is no doubt that in these countries, electric cars are not competitive at all.

So, is there no future for electric cars? Will low oil prices completely defeat the industry? I think the answer should be no, for the following reasons:

First, ultra-low oil prices cannot last long. This time the oil price collapse is mainly affected by market expectations. That is to say, the global epidemic will bring about a sharp reduction in oil consumption. Under the influence of international capital and the wrestling of oil-producing countries, oil prices have fallen sharply.

However, the long-term price of 20-30 US dollars will cause some oilfields with high production costs to reduce production or even shut down. This will reduce supply, especially as consumption warms, we believe that oil prices will increase. This can also be verified from the oil crisis many times in history. Therefore, the impact of low oil prices on the electric vehicle industry is more short-term.