Auto Channel 32

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ISSUE 32 FEBRUARY 2021

THE VOICE OF THE NEW ZEALAND AUTOMOTIVE INDUSTRY

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Electric vehicles close to global tipping point BATTERY COSTS — THE MAIN BARRIER TO MASS ADOPTION — ARE DIVING, MEANING EVS WILL SOON BE THE CHEAPEST OPTION

While EVs are cheaper to run, their higher purchase price is the biggest barrier to mass uptake. The other concern is range anxiety, in which drivers want to see a similar range to fueldriven cars — even though they can be plugged

in overnight, meaning they are ‘full’ every day. However, that concern could also be alleviated by the news last month of the first factory production of batteries capable of giving a 300km charge in five minutes. Zero-emission electric cars can make a major contribution to reducing emissions, especially in countries like New Zealand, where electricity is mostly generated from renewable sources. Converting New Zealand’s passenger-car fleet to EVs would also do wonders for our balance of payments, saving the country an estimated $4 billion a year in fuel costs, most of which goes to overseas oil companies.

steep drop in battery costs is taking electric vehicles (EVs) close to the tipping point of rapid mass adoption around the world. The Guardian newspaper reported this week that global EV sales rose by 43 per cent in 2020 to more than three million and even faster growth is anticipated when plunging battery prices take their price below that of petrol and diesel models. This is forecast to happen in the next two to four years, between 2023 and 2025. It is already the case in Norway, where tax breaks mean electric cars are cheaper than other models. EVs’ market share there hit 54 per cent in 2020 compared with less than five per cent in most European nations.

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