In the ever-evolving landscape of sustainable transportation, the rise of electric vehicles (EVs) is a testament to our collective commitment towards a greener future. As nations embrace the shift towards electric mobility, recent developments across the globe reflect a promising trajectory.
From policy incentives that put cash back into the pockets of EV adopters to significant milestones achieved in EV sales, the world is witnessing a dynamic transformation. In this blog, we unravel the latest updates shaping the EV market, spanning from the pioneering efforts in the UK and France to Australia’s significant stride towards electric vehicle integration, and an inspiring joint venture set to electrify service areas in Italy. Let’s delve into the electrifying journey towards a sustainable tomorrow.
EY: UK Ranks Fifth Globally in EV Readiness Market
EV Country Readiness Index Analysis:
- Analysis of top 20 markets based on supply, demand, and regulation factors.
- China remains first, Norway second, US climbs to third, and Sweden slips to fourth.
UK's Rankings and EV Penetration:
- UK rankings for supply and regulation fall slightly, but EV demand remains 6th.
- EV penetration in the UK expected to rise to 26% in 2023.
Global EV Production and UK's Efforts:
- China dominates global EV production with 55% share in 2023.
- UK aiming to increase battery production capacity significantly by 2027.
Infrastructure Concerns and Recommendations:
- UK faces challenges in EV infrastructure, including a lack of fast charging.
- Need for prioritizing location and speed of charging infrastructure.
Demand and Cost Factors:
- UK ranked 6th in demand for EVs globally.
- Upfront costs of EVs remain a concern for some UK motorists.
- High fuel prices and penalties on ICE vehicles motivate potential EV buyers.
UK's Growth and Regulatory Focus:
- UK EV sales expected to grow by 36% in 2023.
- UK focuses on regulatory support and plans significant investment in EV charging infrastructure.
Government Initiatives and Ambitions:
- UK government investing in EV charging infrastructure and battery production.
- Ambition to achieve net zero emissions by 2050 and create a green industrial revolution.
Overall Challenges and Conclusion:
- UK needs continuous progress in demand, supply, and regulation for successful transition to an electric future.
Plugin Cars Account for 26% of Recent New Car Purchases in France
Plugin Vehicle Registrations in France:
- Last month saw 29,184 plugin vehicle registrations in France.
- This comprised 19,657 Battery Electric Vehicles (BEVs) and 9,527 Plug-in Hybrid Electric Vehicles (PHEVs).
- BEVs had a 17% share, and PHEVs had an 8% share of the overall auto market.
Shift in Powertrains:
- Petrol maintains a 38% share, while diesel drastically drops to 9% from 16% a year ago.
- Diesel’s new car sales might phase out in France within a year.
- Overall market shows a 24% YoY growth in August.
- Plugin vehicles reached a 24% share of the market, with BEVs at 15%.
Best-Selling Models and Brands:
- Tesla Model Y tops the sales, followed by Tesla Model 3 and Peugeot e-208 EV.
- Tesla leads in brand ranking with a 12.9% share, followed by Peugeot and Renault.
Outlook for Future Sales:
- EV sales expected to grow by 36% YoY in 2023.
- Tesla Model Y likely to be the best seller in 2023, with other models competing for podium positions.
OEM Market Share:
- Stellantis leads in market share (28.2%), followed by Renault–Nissan–Mitsubishi Alliance (15.3%).
- Volkswagen Group and BMW Group also showing increased market share.
Challenges and Competition:
- Increased competition from foreign brands like SAIC’s MG challenging traditional French brands.
- Challenges for Renault with slowing EV sales, while Dacia and MG gaining ground.
Industry Shifts and Trends:
- Shift towards electric vehicles reflected in market dynamics, with BEVs gaining ground over PHEVs.
- A significant transition expected in the powertrain landscape, with EVs dominating the market.
Australia Hits Milestone: Electric Vehicles Surpass 10% of Auto Sales
Electric Vehicle Sales Data:
- Out of the 110,000 vehicles sold in Australia in September 2023, 10.6% were electric vehicles, with approximately 8% being battery electric (8,821 units sold) and 2% being plug-in hybrid EVs (1,264 units sold).
Top Electric Vehicle Models:
- The Tesla Model Y was the highest selling battery electric vehicle (BEV) and SUV, coming in third overall behind the Toyota Hilux and the Ford Ranger.
Electric Vehicle Market Growth in Australia:
- Australia’s electric vehicle uptake has shown rapid growth, increasing from 0.8% to 10.6% of the market within a few years.
Market Penetration Rate:
- The electric vehicle penetration rate in Australia has risen steadily, reaching around 8% for most of the year and finally exceeding the 10% barrier in September.
Hydrogen and PHEV Sales:
- Hydrogen car sales in 2023 were limited (10), while plug-in hybrid electric vehicles (PHEVs) saw a significant increase (141%) compared to the previous September’s results.
Source Countries for Vehicles:
- Most new cars in Australia come from Japan, followed by Thailand (where most of the utes are made) and then China (where most of the EVs are made).
- It is expected that Australia’s fleet of electric vehicles will double over the figures from 2022 by the end of the year.
Top Electric Vehicle Models - Detailed Sales Data:
- Detailed sales figures for top electric vehicle models, including Tesla Model Y, Tesla Model 3, BYD Atto 3, MG4, Volvo XC40 Recharge, Cupra Born, Kia EV6, MG ZS EV, Kia Niro, and Polestar 2.
Factors Affecting Vehicle Rankings:
- The reasons behind the movement of vehicles up and down the top 10 chart, which are primarily attributed to supply and logistics rather than demand.
Upcoming Electric Vehicle Releases:
- Mention of upcoming electric vehicle models like the Ford Mustang Mach-E and Renault’s return to the Australian EV market with a new Megane.
Promotion of Electric Vehicles:
- Initiatives to promote the adoption of electric vehicles, including schemes for government school teachers and efforts to increase availability and promotion of EVs in the Australian market.
New $7,500 Federal EV Rebate: Cash in Your Pocket
Introduction of EV Tax Incentives by US Treasury Department:
- The US Treasury Department is offering substantial EV tax incentives to boost electric car sales.
- These incentives are intended to be used directly at the dealership, aiming to encourage electric vehicle adoption across the nation.
Implementation and Utilization of EV Tax Credits:
- Starting January 1st, consumers in the US can utilize a $7,500 electric vehicle (EV) tax credit as a point-of-sale rebate for a new EV.
- Additionally, a $4,000 credit is offered for purchasing a used EV.
- These tax credits can offset the actual price of the EV being sold.
Income Limits and Repayment Conditions:
- To qualify for the point-of-sale rebate, consumers need to meet specific income limits. If consumers exceed these limits, they will need to repay the clean credit at tax time.
Process for Dealers and Reimbursement:
- Car dealers can participate in this program by registering with the IRS through a dedicated website.
- Dealers will be able to submit EV sales receipts to the IRS, expecting reimbursement for the tax credits within 72 hours.
Legislation and Qualification Rules:
- The Inflation Reduction Act (IRA) in August 2022 introduced reforms to the EV tax credits, including new price caps on qualifying EVs and buyer’s income limits.
Additional Regulations for EV Battery Makers:
- The IRS introduced rules addressing how manufacturers source battery components and critical minerals to qualify for the EV credits.
Environmental Impact and National Initiatives:
- The US Environmental Protection Agency (EPA) forecasts a significant increase in the number of EVs on the roads by 2032 due to proposed rules.
- The Biden administration has plans to build a network of 500,000 EV charging stations across the nation by 2030.
Cybersecurity Concerns with EV Adoption:
- The rise in EV adoption raises concerns about cybersecurity threats, particularly related to EV battery chargers.
- Risks include disruption of operations, theft of customer information, and potential use of chargers in distributed denial-of-service (DDoS) attacks.
Macquarie Capital and IP to install EV charging in Italian service areas
Joint Venture Establishment:
- Macquarie Capital, an infrastructure investor and advisor, along with Italian company IP, has formed a 50-50 joint venture.
Objective of the Joint Venture - IPLANET:
- The joint venture, named IPLANET, aims to transition traditional fuel pumps to electric charging stations at 510 IP service areas in Italy.
- The transition to electric charging stations is anticipated to be completed by the year 2032.
Vision for Electric Vehicle Adoption:
- Roberto Purcaro, the Executive Director of Infrastructure and Energy Capital and Head of Macquarie Capital Italy, highlighted Italy’s goal of having 6.6 million electric cars on the road and over 160,000 electric vehicle charging points by 2030.
Role in Decarbonization:
- The joint venture aspires to contribute significantly to the ambitious targets set for the decarbonization of the transport sector.
Fast Charging Technology Implementation:
- The initiative aims to utilize fast charging technology to reduce recharging times to about 15 minutes, encouraging the use of electric vehicles.
Enhanced Services and Amenities:
- In addition to charging stations, new catering, shopping, and car care services will be incorporated at these service areas.
Sustainable Electricity Supply:
- Electricity for the charging stations is intended to be sourced from solar panels installed on site and managed by battery storage at select service areas.
The strides we witness today in the electric vehicle realm are instrumental in steering our planet towards a sustainable and cleaner tomorrow. With nations acknowledging the urgency to shift gears towards electrification, initiatives like the Italian joint venture by Macquarie Capital and IP are igniting hope and setting new standards.
As the world collectively moves towards embracing electric vehicles, we anticipate an accelerating journey, empowering more individuals to make eco-conscious choices and ultimately reducing our carbon footprint. Every step taken, every milestone achieved, propels us closer to a world where electric vehicles reign supreme, promoting not just cleaner air, but a brighter, more sustainable future for generations to come. Stay tuned with us for more updates on the electrifying evolution of the EV landscape.