The global pandemic caused by the COVID-19 crisis is at the root of a major shock for the world’s economy. The automotive sector was no exception, with an expected decline of 21% in the production of light vehicles globally, equivalent to more than 15 million fewer cars being put on the market (Source: Frost&Sullivan, 2020).
Fortunately, the EV sector was able to withstand the worst impacts of the crisis and is in the midst of recovering comparably quicker which will of course have substantial and much needed benefits to decarbonise the transport sector.
The Strength of Electromobility Makes for a Faster Recovery
During the crisis, the productions and sales of electric vehicles also declined, with fewer models coming to the market. However, following the summer, a steady growth in the sales of electric vehicles is expected – this is due to some key advantages that this technology provides. (Source: Frost&Sullivan, 2020)
Some of these which are quite clear and well-known: EVs are sustainable as they have zero emissions, require very little maintenance, as well as are becoming increasingly cost-effective.
Furthermore its unique position as a new technology on the cusp of mass uptake by consumers drives specific business advantages that can contribute to this growth.
Manufacturers are also likely to collaborate more to produce cutting edge-technologies. The production of batteries will become a more relevant part of the value-chain. The broader ecosystem is also on the path to become more integrated and innovative.
The Opportunity for a Green Recovery!
Europe must take this opportunity to invest further in green and zero emission technologies. It would be extremely dangerous to postpone our overarching decarbonisation commitments until the economy is back on track.
The threat of climate change is apparent now more than ever and AVERE firmly believes any EU economic recovery plan must integrate and enshrine the core values at the heart of the Green Deal.
This is the only way to ensure that the continent keeps its long-term climate ambitions and delivers on its aim of carbon neutrality by 2050. With a growing electromobility at its hearth, the Green Deal can be the foundation of a green recovery for a sustainable and prosperous economy.
Bolster a Policy Environment to Support Electromobility
The question is how can the EU provide for the best framework to accelerate the mass uptake of electromobility, so that it can support a green growth?
|Market Share New Registrations EU (EFTA & Turkey). Source EAFO.eu|
One of the most important factors is not abandon the important results that have been achieved so far. The EU’s 2020 CO2 targets for cars, vans and trucks must be kept in place. Rolling them back would only cast doubts on the commitment to a sustainable recovery.
In terms of policy agenda, an important milestone is the upcoming revision of the Alternative Fuel Infrastructure Directive (AFID), the European legislation that will help ensure that the infrastructure supporting electric vehicles will be fit for purpose for the coming five to ten years.
We believe this is the perfect opportunity to address some of the key issues currently faced by consumers like a more uniform approach to payments for charging across the continent, more transparency on the way prices are calculated and better access to charging in building like apartment blocks.
Electromobility is showing its true strength by withstanding the blow of the coronavirus lockdown. As we reopen, consumers are now ready to go back to purchase sustainable transport solutions. If the EU provides the right recovery plan based on a commitment to the Green Deal, industry will have even more incentive to invest in zero-emission mobility, while consumers will have with the right incentives to make more sustainable and environmentally-friendly decisions.
Secretary General AVERE