Comment: What EVs surpassing diesel cars signifies for the fleet industry
Following the news that European sales of electric cars have overtaken diesel models for the first time, Tanya Sinclair, policy director UK & Ireland at ChargePoint, looks at the growth of the EV sector and why more needs to be done in terms of EV charging infrastructure.
For the first time ever, the sale of electric vehicles in Europe has surpassed the sale of diesel cars – demonstrating the rapid growth of the sector and a positive change in consumer habits to greener alternatives.
Across 18 European markets – including the UK – more than a fifth of vehicles sold were electric, while diesel cars slumped to less than 19%.
In December, around 176,000 battery EVs were sold in Western Europe – an all-time record high and a 6% increase on December 2020 levels – while European car makers sold 160,000 diesel cars, the Financial Times recently reported.
Why did 2021 toll the death bell for diesel in Europe?
Despite Europe playing a key part in the advent of petrol and diesel transport, a number of policy and market forces have converged to bring about the rise of electric vehicles in Europe.
A key aspect in building demand for EVs has been governments across Europe creating consistent packages of significant incentives and infrastructure to support the rollout of vehicles and charging infrastructure .
The influence of the ‘Dieselgate’ saga can also not be ignored. It is due to this scandal that many of the key EVs currently sweeping Europe were initially planned and put into action.
In part because of ‘Dieselgate’, Volkswagen has sold worldwide 452,9000 battery-electric vehicles, going up 96% on 2020 levels. In Western Europe, EVs accounted for 10.5% of the group’s total deliveries. This growth, twinned with impending 2030 internal combustion engine (ICE) phase-outs in a growing number of European countries, is significant and will have a further impact on OEMs electrification strategy across the board.
Is Europe ready for an all-electric future?
With an increased investment in the sale of EVs comes the need for an increased investment in its supporting infrastructure, to ensure the uptake of EVs is set up for success.
Quality, reliable electric vehicle charging points are vital for the UK to achieve continued widespread EV uptake, and it is necessary to get this infrastructure in place to remove perceptions which affect consumer adoption. However, it is important that this is done in the right way – it’s not just about needing a large concentration of charging stations – the right speed, location, ease of use and incentives all need to be carefully considered.
For example, more still needs to be done in regard to cross industry collaboration to make current charging stations easier to access for drivers. The answer to this is a fully interoperable ‘roamable’ network where any card – membership or contactless – can access any charger. EV charging solutions must effortlessly fit into consumers’ everyday lives in order to achieve mass adoption. ChargePoint has been pioneering in delivering the technology and roaming agreements which make the overall charging network easier to access for drivers, irrespective of their chosen means of access.
Of course, increasing the number of chargers is also important. However, whilst increased investment in on-street electric car charging is important, for the expansion of the network to make a real shift forward, governments across Europe need to continue to ensure companies in the business of delivering and operating charging infrastructure have the freedom to operate on a level playing field and the ability to become sustainable and profitable. This means measures such as overcoming the prohibitive costs of grid connections for rural charging sites and maintaining advantageous tax breaks on EV charging hardware, such as the Super Deduction.
Fleets, diesel and electrification
Whilst electric cars may be taking Europe by storm, the electrification of larger vehicles is still taking shape. However, the same impetus that drove the move away from diesel in cars already present. Only a couple of years ago we were discussing how cars were going to electrify slowly as there simply wasn’t enough availability or options. We now stand in the same place for heavier vehicles.
Alongside the carrot of incentives in Europe to help fleets of heavy vehicles to start electrifying, city-level authorities also deploying the stick – a growing number are introducing high costs to operate ICE vehicles in ultra-low emission zones. That’s why, even though timelines vary, a growing number of industry players have promised 100% zero-emission fleets in the coming years as these costs can in some cases match or exceed fuel costs in cities like London for low mileage vehicles.
Early adopters of heavy EV fleets have already realised the 20-25% cost savings that come from greater efficiency, more affordable fuelling and reduced maintenance, putting themselves in a pole position for expansion as more vehicles become available and the policy environment moves further towards electrification. McKinsey estimates that by 2030, electric fleets will have a 15-25% lower TCO than those with ICE vehicles; businesses that are already well versed in the new normal are well-positioned to realise these savings.