The keys to EV adoption
A major trend at CES 2020 was that car companies around the world are moving quickly towards battery electric vehicles (BEVs)
Currently, two major obstacles stand in the way of an electrified vehicle future:
- Limited public fast-charging infrastructure
- The cost of a BEV compared to an internal combustion engine (ICE)-powered vehicle. This cost disparity is an even bigger hurdle for Tesla and General Motors, as the U.S. federal tax credit for their electric vehicles began to phase out in 2019 and disappear in 2020. This federal tax credit lowers the cost of a BEV by $7,500 for the first 200,000 BEVs that a manufacturer sells, after which the tax credit is reduced and phased out over the course of the following year.
Until these obstacles are overcome, BEV adoption will be slower than possible and focused on those who can install a home charging station.
Encouraging EV adoption
There are three primary ways to help promote EV adoption:
- Lower the cost of buying/leasing a BEV. One way to do this is through boosting residual value. EV residuals are typically lower than their ICE counterpart because used-EV car buyers deal with the uncertainty of having to replace a very expensive battery and rapidly improving technology.
- Provide buyers with a great customer experience, and that includes selecting the right BEV for your driving needs.
- Collaborate with electric utilities and EV owners/operators to incentivize both home/workplace and public charging.
The good news is that Geotab has solutions that can help with all three of these key success factors.
Geotab’s new Battery Degradation Tool provides fleet operators and fleet management companies critical data needed to make informed electric vehicle procurement decisions. With the tool’s battery health data, users can predict the available range, lifespan and residual value of their assets. The data shows that battery replacement won't be necessary for a much longer period than originally thought. Access the link to the EV battery degradation comparison tool in this blog post by Charlotte Argue.
Range anxiety is often cited as one of the main reasons fleets and consumers have not yet switched to EVs. No one wants to be stranded without access to charging facilities. By looking at the maximum distance a vehicle runs in one day, you can choose what kind of EV you require.
Do you need a long-range battery EV, with a range over 200 miles? Or will a short-range battery do the job? Is partial electrification with a plug-in hybrid best, given that you are driving 400 miles regularly in one day?
Analyzing the maximum distance driven by a vehicle provides an immediate pass/fail gate when considering an electric vehicle. The Electric Vehicle Suitability Assessment is a solution that can help fleets answer these questions and more.
Another way to increase the loyalty of BEV-buying customers is through programs like SmartCharge Rewards. With SmartCharge Rewards, EV drivers earn rewards for charging at the best time of day, in off-peak hours. By shifting charging, EV drivers are often charging at a lower cost and charging greener. Doing this helps electric utilities understand and manage electricity demand. With the support of manufacturers, utilities and drivers to integrate electric vehicles with the grid we are accelerating the adoption of clean transportation.
Sales of electric vehicles globally currently stands at four percent. But that number is only going to go up, and Geotab is working with our partners to help advocate and grow EV acceptance.
See also: Going Electric: Making the switch to EVs
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Geotab's blog posts are intended to provide information and encourage discussion on topics of interest to the telematics community at large. Geotab is not providing technical, professional or legal advice through these blog posts. While every effort has been made to ensure the information in this blog post is timely and accurate, errors and omissions may occur, and the information presented here may become out-of-date with the passage of time.
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