China’s EV Plan Could Cause an Oil Price Crash

“I think down the road, this whole electrification which is a big issue in 2018 will really kick off,” Jakobsen, who is known for making bold predictions, told The National in a phone interview.

“The reason I think it will be big is that the single biggest issue in China is pollution and a way to deal with it is to get electric cars.  On top of that, India has a similar problem,” Jakobsen noted.

Earlier this year, China and India unveiled plans to dramatically accelerate the adoption of EVs, which has prompted the IEA to take notice and promise a review of its long-term oil demand forecast.

Also this year, the EVs market became crowded with Tesla’s new unveils, along with the legacy automakers and truck makers who announced big investments and shifts to more electric car production—including Ford and GM.  Earlier this month, Ford signed a deal in China to establish the 50/50 joint venture Zotye Ford Automobile Co Ltd that will offer a range of stylish and affordable all-electric vehicles for consumers in China.

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