By Gustavo Marqueta, group business development director of WN VTech
The global shift towards achieving net-zero emissions by 2050 has placed immense pressure on governments, businesses, and individuals to embrace sustainable technologies.
Fleet managers, in particular, find themselves at a crucial juncture where considering their carbon footprints is paramount.
Transportation remains a significant contributor to carbon emissions, with the European Environment Agency reporting that it accounts for a quarter of the EU’s total greenhouse gas emissions.
The need for innovation and sustainability in the sector is undeniable, especially amidst the increasing fuel prices triggered by events like the Russian invasion of Ukraine.
As a result, manufacturers are turning towards electric vehicle (EV) technology and electrification to shape the future of transport.
The growth of EV sales has been remarkable, surpassing 10 million globally in the previous year.
In fact, 14% of all new car sales were electric, marking a 5% increase from 2021. This has led to over 26 million electric cars on the roads in 2022, a remarkable 60% surge from the previous year.
The public transport sector has also made significant strides, with 50% of new medium to heavy-duty bus registrations in the UK being zero emissions, and 30% of bus sales in the wider EU being electric, according to Zemo.
These statistics speak volumes about the rising trend of vehicle electrification. However, some markets remain cautious about embracing the sector and implementing the necessary facilitators for electrification to flourish.
Which markets are most open to electrification?
Several markets have already demonstrated a commitment and openness to electrification, with Norway and Sweden leading the way.
These countries have been pioneers in deploying grants and subsidies that accelerate the transition towards a sustainable future of vehicle electrification.
Sweden, for instance, has plans to build the world’s first electric motorway by 2025, enabling electric cars to recharge as they travel.
Such strong commitments from the Swedish government demonstrate their dedication to making electric vehicles an accessible and practical solution for future transportation needs.
Similarly, Norway boasts the highest share of new EV purchases worldwide, with zero-emission vehicles accounting for 50% of its overall car sales.
The successful adoption of EVs in Norway can be attributed to the government’s ‘50% rule’ that grants EV drivers a 50% discount on parking fees, road tolls, and ferry charges since 2017.
Additionally, a 40% reduction in company car tax for EVs was introduced in 2018.
Setting targets in the EU, Germany, and the Netherlands have made commitments to electrification, with towns and cities investing in the development and use of green technologies.
What challenges are facing the market and how can they be overcome?
Despite the progress, the EV industry faces several obstacles that hinder its widespread adoption.
Range anxiety: The fear of battery power running out before reaching destinations remains a debated subject.
Overcoming this challenge requires the development of higher-capacity, fast-charging batteries with longer ranges. Lightweighting vehicles can optimize battery capacity, and continuous research into innovative and cost-effective tech solutions can reassure cautious stakeholders.
Battery technology: While battery technology has seen rapid improvement, there is still room for advancement. Investing in research for better performing, more affordable, and sustainable battery solutions will reassure cautious markets and encourage wider adoption of vehicle electrification.
Government support: Greater support from governments is crucial, especially in terms of long-term funding to deploy and maintain electric fleets.
Clear financial commitments are essential for driving the adoption of new technology and ensuring a viable return on investment.
Costs: Upfront costs of EVs are often higher compared to traditional internal combustion engine vehicles. However, advancements in technology and economies of scale are gradually reducing the cost of EVs.
Government incentives such as tax credits and subsidies can bridge the price gap and make EVs more affordable for consumers.
How does the UK compare?
While the United Kingdom has seen some initial government funding, including the £381 million Local Electric Vehicle Infrastructure (LEVI) fund, incentives need to be accelerated for continued technology development and deployment.
Schemes like the ZEBRA funding, which supports the rollout of electric buses in England, must adapt to support not only large group operators but also small and medium-sized enterprises (SMEs).
Furthermore, the availability and accessibility of charging infrastructure remain significant challenges in the UK.
Private stakeholders and the Government must invest in expanding charging networks in urban areas, commercial buildings, and car parks to make EV usage more accessible for both rural and urban areas.
What does the future of the global EV market look like?
The future of the EV market is brimming with opportunity and growth. However, collaboration among governments, decision-makers, and business leaders is crucial to overcome the challenges that still hinder the sector’s progress.
Countries like Norway and Sweden serve as examples of how a collaborative approach between governments, businesses, and the public can lead to a transformative shift in the perception and usage of EVs.
As fleet managers and engineering pioneers, it is imperative to continuously develop forward-thinking tech capabilities in EVs.
Prioritising customer needs and ensuring their requirements are met, along with promoting wider carbon-reduction initiatives, will further solidify the case for embracing change.
