Barriers to electric vehicles slowly falling
Although the number of electric vehicles (EV) on the world's roads jumped 40% year-over-year to 5 million in 2018, some of the common complaints of EVs today is their initial cost and the lack of recharging infrastructure, but will this be true in the next few years?
With EV battery prices seen dropping to approximately US$94/kWh by 2024 and economies of scale for vehicle production slowly changing in the face of more production, the initial cost of these vehicles will likely be competing with internal combustion engine (ICE) cars within the next five years, and even sooner in some markets, especially when considering the lower cost of maintenance. Remember to calculate mid-term return on investment (4-5 years) and not just the initial price of the vehicle.
Moreover, in terms of recharging infrastructure, this may not be much of a concern in the near future, according to Wagner Rodrigues who is the sales and marketing director for Brazil-based electric micro-mobility and e-motorcycle provider Ciclovolt. Nowadays, many EV owners actually recharge their vehicles at home as opposed to looking for a recharging station.
2018 Nissan Leaf, best selling EV worldwide that year. (source: Nissan)
“EVs are no longer a promise of the distant future. They are a reality today and there is no way back. However, like any new product being launched, it takes time to mature. We just need more time to bring down costs,” Mr. Rodrigues told Fleet LatAm, the Latin America arm of Global Fleet.
While the transition is occurring more rapidly in Europe, China, and the United States (mostly California), it is only beginning to unfold in regions such as Latin America. However, according to the executive, the EV market is rapidly evolving and it is likely that we will not be relying on recharging stations in the not so distant future.
“This is especially true for motorcycles as electrification is quite simple. What is needed are smaller and lighter batteries to maximize vehicle performance. This is a market that I do see taking off, especially since e-motorcycles are cheaper than cars,” said Mr. Rodrigues.
Wagner Rodrigues (left) and Fleet LatAm editor Daniel Bland (source: Fleet LatAm)
Stay tuned for Fleet LatAm’s brief Q&A with the executive, where we will discuss products under Ciclovolt’s new 2019 portfolio.
Electrification is one of the main topics at the 2019 Fleet Europe Summit (6-7 November, Estoril, Portugal). Get your tickets now and learn how you can optimise your fleet and adopt electric vehicles.