What's going on?

Formula E has emerged as the sport of choice for car companies.

BMW and Audi locked in deals to create works teams in the electric race series in July, joining the likes of Jaguar and DS (Citroen) in the green alternative to Formula One.

The category is in New York this weekend, where dozens of world-class drivers will do battle in front of thick crowds on public roads. Unlike most series, Formula E races solely on street circuits, never permanent race facilities.

That's important, as many major cities are moving to ban petrol and diesel vehicles.

Why the big deal?

Audi was the brand to beat at Le Mans for more than a decade, using diesel-powered machines to defeat the likes of Peugeot, Porsche and Toyota in the World Endurance Championship. Turning its back on prototype racing in the wake of the Volkswagen Group's diesel emissions scandal, Audi has adopted Formula E as its top-line motorsport.

While the brand will still race in DTM (Germany's cousin to V8 Supercars) and build customer cars for GT3 and GT4 competition (such as the Bathurst 12 Hour), Audi motorsport chief Dieter Gass says Formula E is the place to be.

"The competitiveness in Formula E between manufacturers, teams and drivers is enormous," he says.

"That makes details in the development all the more crucial."

Formula E started in 2014 with a field of cars that used the same electric motor and battery pack, a combination that could not sustain 100 kilometres of high speed driving. Drivers started the race in one car, stopping part way through to switch to a second vehicle when the first machine's battery starts to go flat.

Next year's competition requires teams to go the full distance with one car while allowing them to develop their own powertrain technology.

That pulled BMW into the fray, says Klaus Fröhlich, board member for development at the Bavarian brand.

"We are using Formula E as a development laboratory, operating under the unique conditions that prevail in motor racing – with very unique demands and opportunities," he says.

"The borders between production and motor racing development are more blurred at BMW i Motorsport than in any other project. The result is a technology transfer on a whole new level. We are certainly confident that the BMW Group will benefit greatly from the experience gained in the field of electro-technology during this project."

Motorsport has a strong history of pioneering technology before it reaches mass production, and five major car companies will use Formula E to develop electric technology set to find its way into next-generation passenger cars.

Who cares?

Car companies should, because it gives them a chance to develop new tech while making a green statement.

Motorsport fans should, because Formula E features outstanding wheel-to-wheel racing from world-class drivers in urban environments.

Environmentalists should, as Formula E does away with the air and noise pollution usually associated with racing.

Say what?

Audi motorsport boss Dieter Gass:

"Formula E delivers spectacular motorsport in the hearts of fascinating cities and is a tremendous stage to present electric mobility and motorsport in their most emotive forms."

BMW Motorsport Director Jens Marquardt:

"We are already seeing in our development work that colleagues from the production and motorsport departments are collaborating in a completely new way. The result is new paths, which we are forging together in the matter of electric drivetrains."

Former IndyCar champion and Formula E commentator Dario Franchitti:

"The talent level is seriously high, there is no doubting that... Formula E has come in and gone from having some good drivers to having a truly excellent grid now

Motorsport writer Marshall Pruett in Road and Track:

"Formula E does nothing for me at this stage of its existence. Painfully slow electric cars with limited range makes for an unrewarding spectacle."

What next?

There is nothing wrong with the class of driver in Formula E – pilots such as Sebastien Buemi, Lucas di Grassi and Jean-Eric Vergne have proven their worth in F1, Le Mans and beyond.

But as Pruett says, the cars lack a little drama. Underpowered, with road-like grooved tyres that offer little grip, Formula E does not have the raw appeal of IndyCar or F1 machinery. But that should change as car makers lift the standard of competition.

Having captured the attention of manufacturers, the next challenge for Formula E is to build a strong supporter base.

Formula E's YouTube subscriber, Twitter follower and Facebook fan numbers (about 140,000, 120,000 and 290,000) are behind established series such as F1 (570,000, 2.95m, 3.5m) or the World Rally Championship (281,000, 261,000, 2.48m), though they do rival the World Endurance Championship (45,000, 202,000, 254,000).

That will come with time.

Some experts, such as Bruce Grant-Braham, a sports marketing academic at Bournemouth University predict that Formula E will pull resources away from established series such as F1 and Indycar, which could position it as the dominant motorsport in years to come.

But insiders such as Franchitti say each major series has its own place.

"Formula E is not going to replace F1, IndyCar, or WEC anytime soon. It is a different branch of the sport which is promoting electric vehicles and allowing the manufacturers to get involved quickly" he told Motorsport.com. 

"They can race in places we wouldn't normally get access to otherwise and it has an unbelievably strong field of drivers and it is bloody exciting. What is there not to like?"