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Ford drives into e-truck space with F-Vision concept

Posing stiff competition to Tesla (TSLA), carmaker Ford (F) is venturing into the e-truck industry with its autonomous electric truck concept F-Vision. With more competitors eyeing the e-truck sector, Tesla will have a hard time maintaining its dominance here.

Ford unveiled the concept at the IAA Commercial Vehicles 2018 show in Hannover, Germany. The F-Vision would be a battery-driven vehicle equipped with level 4 autonomous driving.

Numerous other automakers including Cummins (CMI), Volkswagen and Daimler’s Mercedes-Benz are currently developing electric trucks. Volvo will be coming out with an all-electric truck in California next year, which would be commercially available in North America by 2020.

The worldwide market for electric trucks is anticipated to grow at a compound annual growth rate of roughly 54% over the next five years. According to Frost & Sullivan, the global electric truck market is predicted to reach more than 2.25 million units by 2025 and China will contribute 60% of the global sales.

Electric trucks are fast becoming a better alternative to traditional trucks. However, many buyers are unwilling to pay more for electric trucks that do little to boost profits.

The buyers base their purchase decision on the total cost of ownership as well as the expenses associated with the operation of the vehicle. Though electric trucks cost more, in the long run, it will be more efficient than the diesel engine trucks.

Electric trucks from most other manufacturers are likely to hit the market by 2021-22. It might take another 5 years for the costs to wear off in the electric trucks industry and become an efficient alternative to buyers.

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