25 jan 23

EV opportunities around the world

International fleets with a global electrification programme have to ensure they can satisfy three criteria: firstly, that electric vehicles that can meet the operational demands of the business are available. Secondly, that charging solutions are available for these vehicles. And thirdly, that total cost of ownership forecasts for EVs are affordable.

The only way to address these three issues is on a country-by-country basis. Within regions there are wide variances in EV readiness, due largely to government policy support. According to 78% of EV100 fleets: “Supportive policies from state, regional and city governments are vital to creating the right political climate for systematic change.”

Countries that have set deadlines to phase out internal combustion engines and introduced incentives to buy EVs and install charging infrastructure are the most EV ready.


In China, for example, the sales-weighted median price of EVs in 2021 was only 10% higher than ICE alternatives, compared with 45-50% in other major markets, according to the International Energy Agency. China is also at the forefront of installing public EV charging stations.

At a regional level, however, China’s progress is undermined by minimal EV uptake in emerging markets, such as Thailand, India, Malaysia and Indonesia.

“Building an EV ecosystem in emerging Asia is imperative for ASEAN countries to accelerate consumer uptake and achieve their climate goals,” said McKinsey & Company*.

This involves stimulating both the supply and demand side of the equation via: “greater investment in partnerships, infrastructure and technology development, accelerated low-cost EV model distribution (with total cost of ownership at or ahead of parity with internal combustion engines), integrated finance, government incentives to encourage EV adoption and discourage ICE, and a supporting green investment framework.”*


More mature European markets have had some of these stimulae in place for a few years, but wide local differences still exist, according to ACEA.

A fleet manager can be confident that EV drivers in the Netherlands, for example, could easily find a public charger, with 64.3 charge points per 100km of road, but this drops to fewer than one charger per 100km in six EU countries.


In the LatAm region, Fitch Solutions forecasts that EV sales will remain nascent until 2026, due to their affordability (despite Nicaragua, El Salvador and Panama introducing new legislation to support EV adoption). Brazil is the regional leader for EV sales, but “the country's EV charging network remains undeveloped in order to adequately support the growing EV fleet,” said Fitch Solutions**.


Accelerate fleet electrification

The Corporate Electric Vehicle Alliance, led by Ceres, in the US has outlined the steps required to support fleet EV uptake.

  1. Greater variety and volume of zero-emission vehicles.
  2. Access to cost-effective charging.
  3. Greater transparency of new model launches to help vehicle procurement teams.
  4. Upfront cost parity with ICE vehicles.
  5. Access to renewable energy.
  6. Better coordination with energy companies to install workplace charging infrastructure.
  7. More strategically located public chargers.
  8. Streamlined, interoperable public chargers for ease of use, data capture and simple invoicing.

*Source: Capturing Growth in Asia’s Emerging EV Ecosystem – McKinsey & Company
**Source: LatAm EV Outlook: EV Uptake Limited By Affordability Gap – Fitch Solutions

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