Contribution to the EESC hearing
On 9 February 2010, the upcoming Belgian EU Presidency decided to consult the European Economic and Social Committee (EESC) for an exploratory opinion on the topic “Towards a widespread use of electric vehicles”. The Section for Transport, Energy, Infrastructure and the Information Society organized on 12 April 2010 a hearing in view of completing the Committee’s work on the subject.
Going-Electric presented its views at this public hearing (download our presentation - pdf 500kB).
Abstract of Going-Electric's presentation
Going-Electric emphasises that the focus should be put on the right question, which is:
"In which technologies should Europe and the car industry invest?"
In order to answer to this question, we must understand where the main issues are:
What vehicle technologies are the future ?
80% of car traffic made by one person for a distance shorter than 60km, mainly in slow traffic. Battery Electric Vehicles (BEVs) are ideal for this usage. Their technology is simple and well-known (150 years old). They are far cleaner than ICVs, significantly reducing CO2 emissions, oil consumption, and urban pollution and noise.
For urban areas, electric quadricycles and Ultra-Small Urban Electric Cars are ideal.
They can be up to twice as clean as large electric cars, while significantly reducing traffic and parking congestion.
For longer distances, Extended Range Electric Vehicles (EREVs) are the cleanest solution, technologically available now. Fuel Cell Vehicles (FCVs) could replace EREVs in the future, but there are not commercially ready yet.
How fast could this future happen ?
TODAY, technology is ready for 100% clean cars (BEVs + EREVs).
About 25% of EU15 families have two cars; about 40% of them have a car carage, which means that about 10% of EU15 families would NOW buy a BEV, if attractive BEVs were available and if attractive financial AND non-financial incentives were temporarily available untill mass production reduce their price.
Another 15% would by a BEV as soon as a charging point can be available next to their home.
What is needed to make this future happen?
How much would it cost?
It depends on public authorities because the EV market is a "chicken and egg" situation : EVs are expensive because there are not enough buyers, so the supply is limited and the production volumes are small, which leads to few models of expensive EVs. As EVs bring benefits to society, not to owners, it is the duty of governments to make the first step.
Therefore, EV buyers should temporarily benefit of both financial and non-financial incentives, until EV production volumes increase, making them competitive, if not cheaper, than petrol vehicles. Also, incentives for manufacturers should be created.
Conclusion
The technology of the future is clearly electric vehicles (BEVs, EREVs and FCVs).
This future could happen very soon if public authorities provide the right incentives.
Europe and its car industry should therefore massively invest in electric vehicles.
Given that resources are limited, they should stop investing in other technologies.
Financial incentives for car manufacturers, as well as both financial and non-financial incentives for electric car buyers, are necessary to make this future happen.
This is essential to maintain the competitiveness of the EU car industry on a world scale.
Download Going-Electric's presentation in full (pdf 500kB)
Additional question
After the hearing, EESC came to Going-Electric with the following additional question:
EESC: "Do we have an idea, based on reliable surveys and studies, about consumer acceptance for Electric Vehicle (EVs)? In other words, do we know the percentage of car users which would be ready to use an electric car?
Going-Electric: We have no detailed knowledge of reliable surveys on consumer acceptance for Electric Vehicles (EVs).
Several studies exist, indicating that most consumers claim that they would switch to EVs if there were some attractive EV models available. In many of these surveys, most consumers claim that they would be prepared to pay a significant premium (typically 10 to 15%) for an EV.
However, as noted by one of the panellists on last week’s hearing, there is often quite a gap between what consumers claim they would do and what they actually do.
Noting that:
We are convinced that:
- Most two-car families (25 to 30% of all families in developed countries) would be happy if one of their cars was a BEV,
- For all other cars, EREVs could be rapidly accepted by the market (and later FCVs),
If and only if the following three conditions are met:
- Availability of attractive models.
This will only happen if car manufacturer are confident that they can sell the EVs (both BEVs and EREVs) that they put on the market, i.e. if conditions 2 and 3 are met.
Also, financial incentives for investments in EV production plants can be instrumental.
- Sufficient incentives for BEV buyers.
This should consist of a mix of:
- Temporary financial incentives (such as tax/VAT rebates and/or subsidies) until high production volumes make EV prices competitive with petrol cars.
- Non-financial incentives such as free and unlimited parking on public space, freeway toll and congestion charge exemption, and access to bus lanes.
Such non-financial incentives cost nearly nothing, while experience has proven that they are very effective.
- Possibility of charging at night near home.
No-one will buy an EV if he can’t charge it very close to his home.
While 10 to 20% of families have a car garage in which they can charge an EV, governments should rapidly put in place the legal framework enabling EV buyers to rapidly install a charging plug next to their home (with a reserved parking space),
or have it installed by local authorities.
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