SUSTAINABILITY
What Will It Take To Make Consumers Ready For Shift To Electric Vehicles ?
By Enock Wandera
The transport sector accounts for around a quarter of energy-related CO2 emissions globally and is almost completely dependent on fossil fuels . Decarbonizing the sector has therefore been identified as one of the crucial pathways of reducing global warming within the range of 1.5 degree Celsius in line with the goals of the Paris Agreement .
This has seen the push to ensure the transport sector is environmentally sustainable in the face of climate change , and also gain momentum across many regions . In Africa where the population is also projected to grow exponentially , coupled with urbanization , the desire to pursue a sustainable , low-cost energy pathway has never been more urgent .
This offers opportunity for Africa to tap into the growing global momentum to transition into the Electric Vehicles ( EVs ) hence limit greenhouse gas emissions . This momentum has been boosted more by the skyrocketing gas prices because of the Russian invasion of Ukraine and ongoing concerns about climate change .
According to the International Energy Agency ( IEA ) Global Electric Vehicle Outlook 2021 , 10 million electric cars were on the world ’ s roads in 2020 . This was a pivotal year for the electrification of mass market transportation . Sales of electric cars were 4.6 % of total car sales around the world . The availability of electric vehicle models expanded . New initiatives for critical battery technology were launched . And this progress advanced during the Covid-19 pandemic and its related economic downturn and lockdowns .
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One thing that is noteworthy is that despite the surge in consumer interest , sales of fully electric vehicles remain a stubbornly small part of the overall light vehicle market . Despite the many ongoing initiatives either in Africa or at the global level , the uptake of EVs has remained low .
Over the last decade a variety of support policies for electric vehicles ( EVs ) were instituted in key markets which helped stimulate a major expansion of electric car models .
But the IEA notes that the challenge remains enormous . Reaching a trajectory consistent with the IEA Sustainable Development Scenario will require putting 230 million EVs on the world ’ s roads by 2030 .
A most recent Ipsos Mobility Navigator Study also indicates , there is an unprecedented push by the auto industry to launch more electric vehicles , and consumer interest in Battery Electric Vehicles ( BEVs ) is on the rise .
Almost one-half of potential buyers in the U . S . say they will consider a fully electric vehicle for their next purchase . That is an increase of almost 400 % since 2018 , when only 13 % indicated they would consider a BEV for their next purchase .
Ernst & Young ( EY ) Mobility Consumer Index ( MCI ) 2022 study has shown similar findings . The consumer confidence in EVs is rising fast and within that overall demand boom EVs are set to be the stars of the show . For the first time , over half of consumers -52 % - who intend to buy a car in the next 24 months say they will choose an EV or hybrid vehicle . That ’ s up 11 % from 2021 and 22 % in 2020 . This growing consumer confidence in EV technology is also reflected by the jump in preference for fully electric vehicles , up from 7 % in 2020 to 20 % in 2022 . The popularity of “ stopgap ” hybrid and plug-in hybrids also increased but at a much lower pace .
The MCI survey is a major global EY research program that has tracked consumer mobility patterns and buying intentions since the start of the Covid-19 pandemic in 2020 . It encompasses nearly 13,000 consumers across 18 countries .
It reveals that as the preference for EVs grows , the motivations for choosing one are shifting . Green “ early adopters ,” whose main drivers are environmental , are now being joined by mainstream buyers with more prosaic financial concerns . The “ pull ” effect - the desire to be seen helping the environment by buying an EV - is now closely followed by the “ push ” of fears that congestion and pollution charging may hit the owners of ICE vehicles harder in the wallet . Environmental concerns are also a lower priority for second-time EV buyers than for those considering their first EV purchase .
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