Incentivizing EV purchase

Issue # 149, June 22nd, 2022

The Electric Vehicle (EV) industry needs a push to accelerate its adoption. Incentives are a way to nudge both the industry and customers to go for an EV purchase. For the car rental industry, EVs are a way to help corporates achieve their Sustainability goals. Corporates are willing to pay a premium for rental EVs. The car rental industry can be a torch bearer in faster EV adoption. For consumers, credit card reward points are a way to incentivize EV purchase and usage. For technicians, upskilling to learn about EVs and autonomous vehicles is a necessity to stay relevant in a competitive job market. Charging stations are the key to large scale EV adoption. Vehicle makers come up with their own strategy, but realize that interoperability and adherence to standards are a must. As an answer to the need for low maintenance tyres for EVs and autonomous cars, tyre makers are experimenting airless tyres. India's Road Transport and Highways minister's target is for EV parity in one year, in parallel promoting alternate fuels like ethanol made from crop residues. Here are some recent updates in the automobile industry to incentivize multiple stake holders for faster EV adoption.

EVs at a premium for corporate rentals

The $56-billion U.S. rental industry typically buys about one-tenth of auto manufacturers’ new cars every year, but with persistent supply-chain disruptions, especially the shortage of essential computer chips, the numbers are way down. U.S. sales of EVs doubled in 2021, but still only comprise about 4% of the nation’s total market for cars and trucks. “The initial research has shown that corporate accounts are going to be willing to pay a premium for EVs,” Chris Woronka, an analyst at Deutsche Bank said, “because it helps them achieve some of their ESG objectives.” - CNBC

Credit cards and EV reward points

U.S. Bank began offering EV rewards in January on its business and consumer credit cards. Several months later, Sam’s Club joined the EV rewards bandwagon. All this means EV owners now have several options, although there are still some caveats. One is that these cards typically reward you for charging at a public charging station, and usually not for charging your car at home where costs are lumped in with your home’s electricity bill. Ultimately whether it’s worth getting a credit card with EV rewards depends on your credit card habits and how much you drive. - WSJ

Learning EV service for employment

An EV future doesn’t just require new skills. It also requires the willingness to embrace change, say two technicians in Singapore who have seized opportunities to upgrade their automotive skills amid a national push to adopt EVs. With the Land Transport Authority (LTA) taking steps to train technicians in the maintenance of cleaner-energy buses, more technicians like Mr Isa can soon get similar opportunities. The way Mr Isa sees it, there will be a demand for IT technicians in “maybe 20 to 30 years’ time” to manage autonomous vehicles.?Mr Isa tells them that if they go through training and get new knowledge, they can make themselves "more valuable" and "stay relevant in the industry" - “When I take a look at these autonomous vehicles, their coding is really out of this world.” - Channel News Asia

Plugging the charging station gap

Tesla represents 80% of the EV market in the U.S. With 80% of Tesla owners charging at home, the development of public charging stations has not kept pace with future needs. But there are signs this is changing. Tesla, which had used its own proprietary technology, has been moving away from that model. GM, through its community charging program, will distribute up to 10 charging stations to its EV dealers. Over the next ten years, Ford plans to increase spending on EVs by as much as $20 billion. Its charging network is the largest public charging network in North America. The major automakers are calling for an extension of those government incentives for EV purchases. - CNBC

Airless tyres for EVs

Electric cars and autonomous mobility are changing tyre needs. Delivery firms and shuttle services want products that are low-maintenance, puncture-proof, recyclable, and have sensors that map road conditions. On a test track in Luxembourg, a Tesla Model 3 is twisting through tight corners, accelerating rapidly, and doing emergency stops. What's remarkable, though, is the car is sitting on four airless tyres - made by Goodyear. - BBC

EVs at par with ICE in 1 year

The prices of all EVs will be equal to the cost of petrol vehicles in the country within one year, India's Road Transport and Highways Minister Nitin Gadkari said recently. He further said the government is promoting ethanol produced from crop residue instead of petrol and diesel. The minister said the government is already promoting green fuels in a big way. India recently was ahead of time to achieve its target of 10% of ethanol blending. - Economic Times