Renault-Nissan sets aside $5.6 billion for electric vehicles

Touted as the future of the automobile, the EV or Electric vehicle is the buzz word for most auto manufacturers today. Many companies are pumping millions of dollars into the development of automobiles that can be powered by electricity. We drove two electric cars in 2012 - the Fluence EV in Portugal and the Leaf that came to the Auto Expo. We were convinced that electric vehicles are slowly going to replace cars powered by internal combustion.

Read about Indian Autos Blog's casual encounter with the Nissan Leaf

The clear advantages of EVs are that they don't run on fossil fuel and as a result don't pollute the environment. However, most auto manufactures haven’t yet cracked the holy grail of EVs. The EVs that are running on the streets today have several shortcomings and thus haven’t yet fully replaced fossil fuel burning traditional vehicles.

The CEO of the Renault-Nissan Alliance, Carlos Ghosn is the biggest advocate of EVs in the industry. He made an announcement last year that the Renault-Nissan Alliance will pump 5.6 billion dollars to build 500,000 electric vehicles and batteries at 11 factories in eight countries by 2013.

Ghosn believes that the technology of the batteries, the technology of the motors, and the technology of the other components makes it possible to have a car with a very competitive performance to internal combustion. The automotive industry is not going to be able to continue to prosper unless the manufacturers embrace technology that is independent of oil and respectful of the environment.

Head over to Wired.com to read more on the EV development plans of Renault Nissan Alliance that was published last year.