THE UNDERDOG
According to statistics, only two million electric and hybrid cars were plying the roads worldwide in 2016. That’s about 0.2 percent of the global fleet of cars — an insignificant number. But what the electrics lack in volume, they make up for in growth. Year-on-year sales for plug-in vehicles grew 42 percent in 2016. This growth is 20 times faster than the overall market for light vehicles worldwide, which grew by only two percent. But in order for electrics to proliferate, sustained growth is needed, creative infrastructure must be put in place, policies must incentivize usage, costs must meet user needs across user segments, and technological advances be made to increase the utility of EVs.
Flip the switch
Norway, the electric vehicle (EV) pacesetter and trendsetter, has long flipped the switch to clean transport in Europe where almost 25 percent of vehicles registered in the country are now electrics. Norway and the Netherlands both aim to end the sale of gas-powered cars in their respective countries by 2025. Other European countries like France aims to step up the switch from gas to electrics with their anti-pollution plan with the worsening air quality in the country year after year. And the most influential of them all, Germany, is pushing for a Europe-wide mandate to stop gas-powered car sales by 2030, according to Der Spiegel. Luckily, several German automakers are accelerating their electric vehicle programs to include Volkswagen’s plan to build two to three million all-electric cars and 30 new models by 2025, and Benz’s all-EV brand, the EQ.
Ambitious
The most ambitious plans for going electric comes from China, the country where the most EVs are seen and used daily. With over 600,000 all-electric vehicles on its roads, the country is setting its eyes on an ambitious plan to deploy five million EVs by 2020 according to the Nikkei Asian Review. With over 1.3 billion people, staggering car sales at 28 million in 2016, the world’s factory for everything is seriously creaking on its own weight. EVs in all shapes and sizes are a common sight in many cities across the country with policies that incentivize private users and companies to go green – a clear indication of its commitment to de-carbonization.
Key cities like Taiyuan, dubbed the coal capital of China, recently replaced its entire taxi fleet with electric vehicles with charging stations being put up across the city in some unlikely places such as idle factories that now serve as indoor charging stations complete with free Wifi, car wash, and cheap beef noodles while you wait.
LTO
Meanwhile, at the home front, mini-EVs grabbed headlines when the Land Transportation Office (LTO) cracked down on e-bikes that have not been registered with the agency. These vehicles have “massively multiplied” as one reporter puts it, and have begun to pop up in several places in the metro. Buyers and sellers must be aware of what’s required by law and adhere to it lest your e-bike be impounded and your ride confiscated. So, buyers, beware. Make sure the supplier selling you your e-bike is duly registered with the LTO.
The news is not all bad. The interesting insight to this seeming negative news is that electrics are popping up and are now being used as an inexpensive alternative for personal transport – proof of growing awareness and acceptance on the use and benefits of electrics that were not seen before.
Common ground
Cities the world over have in common the ambitious goal to tackle climate change, pollution, and congestion issues. Add to that the need for low-cost, fume-free transport for the common citizen in developing countries where mini-EVs play a role.
There is a global momentum led by the country whose sheer size and “muscular emergence” in the world can accelerate the tipping point for e-mobility across the spectrum from high-end luxury EVs to the more affordable, utilitarian ones. According to the Nikkei, no country sold more EVs than China where carmakers see it as their most important market for manufacturing and sales. No doubt, the country has the power to tip the scales in favor of electrics at a faster rate.
Success stories in several countries prove the need, feasibility, and multiple benefits of using EVs, especially in urban areas where the range of EVs is enough for most of what people need. Its multiple utility function serves the last-mile logistics needs of people and businesses alike. As higher, stricter emission standards continue to squeeze the profit margins of carmakers, and as countries push forward to advance the agenda of climate change and the cost of pollution as high risk factors, carmakers and consumers will seek an alternative solution to help mitigate those factors.
Drivers of change
No doubt, your favorite gas-fed vehicle is here to stay and co-exist alongside its electric sibling. But technological advances in battery life and cost are coming at an accelerated pace. EV volumes are comparatively small at present but the technological investments in the industry are large and increasingly focused on technology. With a significant double-digit growth that’s seen to continue, coupled with emission policies in key auto manufacturing countries, a larger-scale adoption of electric vehicles is expected to the point that discussion on the supply and source of batteries may become a key political concern. Who will the “new OPEC” be to supply the batteries needed for an electric-driven future?
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