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Why Electric Vehicles will have a great Economic Impact in California this year

For the last five years, one of the industries that have had a great economic impact in California is the electric vehicles. It has been a great source of not only jobs but also manufacturing exports. In addition to that, its value has been snowballing. That’s why there is a possibility that in 2020, it will be California’s top manufacturing export. One of the factors contributing significantly to the sector emerging on top is the global demand that keeps rising over time. The fact that the COVID-19 pandemic has paralyzed most of the industry also impacts the same. Last but not least is the favorable economics. As the state and the rest of the world in fighting climate change, the electric vehicle industry will be one of the greatest beneficially economically.

So far, the numbers are in its favor. For instance, it is offering good jobs amounting to tens of thousands. There is also the fact that the governments are getting tax revenue worth millions from the same. Equally important, several supporting businesses are coming up due to its existence. That, coupled with the protection of the environment, is something that the state should be proud of, no doubt. Almost all policymakers are recommendation extensive use of clean energy. Under such circumstances, the economic growth of the electric vehicles industry is likely to improve. After all, it is one of the cleanest energies in the world. In particular, California is making it easy for the industry to thrive. After all, it encourages innovations, supports manufacturing businesses, and sets strong policies around the same. There is also a rising demand for electric vehicles.

Since the global demand for electric vehicles is increasing, the exports from this state will consequently increase. As far as Europe is concerned, the sales were at 515,000 during the end of July 2020. That was almost 9% of all the new cars sold that year. The improvement in China is undeniable, considering an increase by 44% when comparing August this year and last year.

However, the state will not benefit as much as it did last year from the civilian aircraft industry. As of last year, it was its leading export. The state exported a lot of civilian aircraft parts and engines last year. However, that has not been the case in 2020 due to the adverse effects of the COVID-19 pandemic. Despite the decline in the civilian aircraft sector, the electric car industry fills the void all too well. No wonder the high chances of it emerging as the state’s top manufacturing export in 2020.

https://insurancejust.com/