Market Insights #16

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Welcome to our bi-weekly newsletter featuring 5 main news on e-mobility around the world. On this 16th edition, we're diving in tax incentives in Europe and the 2024 Finance Bill in France. We're also looking at new investments for EV infrastructure and EV expansions throughout Europe and in Korea. Finally, we're going back on NACS and standardisation. We hope you enjoy reading us, let us know your thoughts in the comments!

TAX INCENTIVES

Tackling the complexity of EV policies and initiatives across Europe

The European Commission is thoroughly investigating Chinese EV subsidies, a decision that may impact global trade relations and affect both local and international EV producers. Concurrently, France is not only investing €1.5 billion in eco-friendly vehicle projects and introducing a €100/month EV social lease, but is also revamping its vehicle tax system through its 2024 Finance Bill (PLF). This reform emphasizes both CO2 emissions and vehicle weight to encourage electric vehicle acquisitions. On the other hand, Italy is contemplating adopting a subsidy model similar to France's, focusing on various tactics linked to CO2 emissions and other crucial factors to boost eco-friendly domestic vehicle production and usage. The global market is witnessing intertwined policies, creating a sophisticated web that spans economic, trade, and environmental dimensions.

Gireve’s view?: Tax incentives for electric vehicle purchases play a crucial role in propelling EV sales and fostering the broader electromobility ecosystem. The European Commission's investigation highlights their determination to protect the European market in the light of the rapid growth in the Chinese EV sector, reflecting protective actions previously taken by the U.S. Meanwhile, France, and potentially Italy, are revising their fiscal incentives, emphasizing vehicle weight and introducing a social leasing approach. These initiatives resonate with France's commitment under the Paris Agreement and its Climate Plan. Given that cost is a primary deterrent for potential EV buyers, and that an EV's weight directly impacts its efficiency and carbon footprint, these policy shifts are both timely and essential.

Source?: EV Magazine, MIT Technology Review, electrive, FlotAuto

EV CHARGING EXPANSION & INVESTMENTS

Investment surge in EV charging infrastructure across Europe and the US: spotlight on Cepsa, Chargepoly and Swish’s ambitious expansions.

Spanish oil company Cepsa, backed by a €150M European Investment Bank loan, will establish 1,800+ ultra-fast charging stations across Spain and Portugal, focusing on economically disadvantaged areas. Simultaneously, the leading French operator Swish secures €47M from INFRAGREEN V to bolster its EV charging solutions for businesses, aiming to deploy 80,000 charging points by 2030. ?Swish intends to continue its initiatives in France and expand across Europe, especially in Italy and Spain. Meanwhile, on the transatlantic front, Chargepoly's fresh €15M funding from Fidève Groupe and Voltalia aims to enhance the presence of its ultra-fast electrical charging solutions across Europe and the US, with a strategic focus on the logistics and public transport sectors.

Gireve’s view?: The surge in funding and expansion for EV charging solutions across Europe and the US underscores a proactive approach to meet future mobility demands. Most notably, Cepsa's investment in economically disadvantaged areas stands as a testament to the growing realization that e-mobility should be universally accessible. By prioritizing underserved regions, it not only diversifies the charging landscape but also addresses social inequities, ensuring that the electric transition doesn't become a luxury but a right for all. This forward-thinking strategy is indicative of the evolving role businesses are playing in shaping both economic and social landscapes.

Source?: Swish, electrive, chargepoly

Navigating the EV charging expansion in Sweden

Sweden's public charging infrastructure is expanding, with over 30,000 charging points and reflecting a 13,000 increase within nine months reported by the ELIS statistics service of Power Circle. The increase, influenced by both genuine growth and improved data collection from NOBIL, aligns with the rollout of EVs in Sweden and meets the emerging AFIR EU regulation requirements for charging infrastructure. The regulation will enforce expansion and data-sharing among charging infrastructure, ensuring further, well-documented growth and availability of charging stations.

Gireve’s view?: While Sweden stands as a leader in electric vehicle sales penetration, boasting a rate of 60%, it faces a significant challenge regarding its insufficient charging infrastructure, underscored by a vehicle-to-public charge point ratio of 26.4, some way behind the global average of 15.9. Despite a slight lag in deployment, the recent commendable expansion of public charging infrastructure in Sweden demonstrates adherence and responsiveness to the AFIR's deployment requirements across European territory.

Source: Power Circle

BMW to amplify EV charging network in Korea

In a robust expansion for 2023, BMW Korea aims to nearly double its EV charging stations by introducing 1,000 additional units, bolstering the total to 2,100 and constituting over 50% of automaker-provided chargers in South Korea. As a facet of the "Charging Next" project, in alliance with LG Electronics and GS Energy, this expansion will not only ensure compatibility with all EVs but also emphasize sustainability and user experience by integrating 350 kW and 200 kW fast chargers, enhanced highway stations, and ESG stations, which leverage reused EV batteries and eco-friendly energy sources like wind power.

Gireve’s view?: In a country experiencing an electric vehicle sales penetration below the global average, the role of charging infrastructure becomes pivotal to foster enhanced adoption of electric mobility. South Korea thus seeks to densify its charging network, bolster charging services in high-traffic areas, and accelerate the growth of direct current charging infrastructures. In an ecosystem initially directed by governmental forces but progressively seeing an influx of private entities, BMW's announcement illuminates the central role of OEMs in strengthening charging infrastructure and underscores the necessity of collaborations among automakers, technological entities, and energy providers.

Source?: The Korea Herald

STANDARDISATION

Major automakers embrace Tesla’s NACS, signaling potential industry charging standard in the US

A surge of major automakers, including Hyundai, Kia, and Genesis, are adopting Tesla's North American Charging Standard (NACS) from Q4 2024, signaling a pivotal industry shift toward a shared EV charging norm in North America. Enabling access to the expansive Supercharger network, these automakers, alongside a multi-manufacturer consortium, are also developing a dual CCS and NACS compatible charging network, launching in summer 2024. Meanwhile, Honda is leveraging partnerships with EVgo and Electrify America, aiming for single-app access to an extensive US charging network, reflecting a broader move toward unified, standardized EV charging infrastructure.

Gireve’s view?: As mentioned on our previous Market Insights newsletter, the widespread adoption of Tesla's NACS standard in the United States highlights the increasing role of standardization in the electric vehicle (EV) charging sector. Collaborative efforts among automakers trigger a positive domino effect, encouraging other regions and manufacturers to follow suit. This creates a global, easily accessible charging infrastructure for all EV users worldwide. However, the concept of an international standard is not yet on the horizon. While CCS is the standard in Europe, the U.S. is leaning towards the Tesla connector, and Chademo remains popular in Asia.

Source: electrive, Reuters, electrive