Hyundai Sees Future in Eco-Friendly Cars
Hyundai is the largest car producer in South Korea, so when it says something about the future of the auto industry, people listen. Today was no exception, as the company declared that there is a future in hydrogen cell vehicles as well as electric cars.
The company has so far sold most of its fuel cell cars in Europe and California, which are both places this market can be expected to grow. The fuel prices in Europe and California and other areas of the United States could easily encourage adoption of alternative fuel vehicles which would ultimately cost the user much less to operate, even if the entry fee would be higher for the car itself. One challenge, however, is having a network of places to refuel these vehicles in the markets the company is targeting.
The auto industry in general has a great deal of cash it could invest in eco-friendly solutions that could route around the oil industry altogether. The question is whether this would be a profitable endeavor in the end for the companies. If there were not enough adoption, or if there was not a network effect where the alternative fuels would be abundantly available to consumers, then it could backfire on them, and be a waste of money. Or worse, the petrol companies could get back at them by raising the prices at the pump, thereby making all of their vehicles expensive to get and own. This would be a two-fold negative effect for the auto industry.
Thus, you might not see a massive movement from the overall auto industry in this direction. But you will see a few companies, like Hyundai, which will invest heavily in it, with the hope that the necessary industries will pop up to service the vehicles out in the wild, which is an important aspect in the customer’s decision to purchase. If such an infrastructure were available and obvious, it might be a lot more likely that people would go ahead and make the switch to these vehicles, of whatever species, if only for the novelty of it. But in the meantime, with a lack of such an infrastructure, there is less likelihood that people are going to take the risk of owning such a vehicle and getting stuck somewhere, or something.
It is entirely possible that such an industry could pop up, however, and that the investment by Hyundai and potentially other companies could pan out, making them a handsome profit as people can make use of their new vehicles. This is the critical part, is whether or not people can drive them, given their circumstances. If new businesses open, or if existing stations add on the type of alternative fuel that these cars use, then they can be viable, and perhaps actually challenge the current order of vehicles and gasoline.
There is growing movement of people who would prefer to see gasoline and other petrol fuels stop being burned. This movement can be satisfied, and people can save money if technology can answer the problem ahead of time. This is, in fact, the ultimate problem of our age.
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