Government committed to facilitate easy financing for private sector: Finance Minister    Egyptian, Chinese transport officials discuss bilateral cooperation    Health Ministry adopts rapid measures to implement comprehensive health insurance: Abdel Ghaffar    Rafah crossing closure: Over 11k injured await vital treatment amidst humanitarian crisis in Gaza    Nouran Gohar, Diego Elias win at CIB World Squash Championship    Coppola's 'Megalopolis': A 40-Year Dream Unveiled at Cannes    World Bank assesses Cairo's major waste management project    Egypt sets EGP 4b investment plan for Qena governorate    Russian refinery halts operations amid attacks    NBE, CIB receive awards at EBRD Annual Meetings    Egypt's gold prices increase on Sunday    Partnership between HDB, Baheya Foundation: Commitment to empowering women    China's pickup truck sales rise 4.4% in April    Venezuela's Maduro imposes 9% tax for pensions    Health Minister emphasises state's commitment to developing nursing sector    20 Israeli soldiers killed in resistance operations: Hamas spokesperson    Sudan aid talks stall as army, SPLM-N clash over scope    Microsoft eyes relocation for China-based AI staff    K-Movement Culture Week: Decade of Korean cultural exchange in Egypt celebrated with dance, music, and art    Empower Her Art Forum 2024: Bridging creative minds at National Museum of Egyptian Civilization    Niger restricts Benin's cargo transport through togo amidst tensions    Egyptian consortium nears completion of Tanzania's Julius Nyerere hydropower project    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    AstraZeneca injects $50m in Egypt over four years    Egypt, AstraZeneca sign liver cancer MoU    Swiss freeze on Russian assets dwindles to $6.36b in '23    Prime Minister Madbouly reviews cooperation with South Sudan    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Amal Al Ghad Magazine congratulates President Sisi on new office term    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Europe's shift to electric cars picks up despite recession
Published in Ahram Online on 15 - 07 - 2020

The coronavirus has cancelled business plans all over the world but Europe's push into electric cars isn't one of them. Sales of battery-powered and hybrid cars have held up better than the overall market amid a deeply painful recession, mainly thanks to the action of governments.
The 27-country European Union is moving ahead with a major shift in transportation as part of the bloc's efforts against climate change. Under regulatory pressure carmakers are rolling out a slew of new electric models so they can meet tougher limits on greenhouse gases that come into full force next year.
Battery-only models are becoming more affordable, especially as sales are supported by substantial government subsidies. As sales of internal combustion cars have fallen, demand for battery-only cars and hybrids that combine electric motors with conventional engines has been stable or even increased, recent statistics show. By contrast, electric car adoption is moving more slowly in the U.S. due to regulatory uncertainty.
The market share of battery and hybrid vehicles rose sharply across major European markets during the first half of the year, even as the outbreak closed showrooms in March and April. Germany saw an increase to 8.4% from 3.4% a year earlier as overall sales of all car types slumped 35%. France saw the plug-in share jump to 9% from 2.5%. Sweden saw a surge to 25%, from 10%.
One of the pandemic car buyers was Frank Schendel, a dentist from a small town outside the Bavarian city of Augsburg. In may he bought a battery-powered Hyundai Kona Elektro, a compact SUV-style hatchback. He had rented a Tesla on vacation for a couple of days.
``My son is getting his driver's license at the moment, and a Tesla is bit too expensive and too fast, so I was glad to discover the Hyundai Kona,'' he said.
He hasn't driven his 10-year-old Mercedes E-Class station wagon since. ``It's fun, fast and quiet, technologically up to date,`` said Schendel, 52. ``We drive the Kona everywhere: 500 kilometers to visit grandma, grocery shopping. We do every trip with the Kona.''
The 64 kilowatt-hour battery has a range of up to 484 kilometers, enough to reach grandma with just one stop at a highway charging station.
Electric car buyers are attracted by large government incentives. Under the German government's latest stimulus package, for example, an electric car with a price tag under 40,000 euros is eligible for a 9,000-euro incentive, 3,000 euros of that to be paid by the manufacturer.
Car buyers now have 70 different battery and hybrid models to choose from, with prices starting below 20,000 euros including those local subsidies in the case of the Seat Mii, the Renault Twingo ZE, and the Skoda CITIGOe IV. Volkswagen says it will start delivering its ID.3 battery hatchback by year end, starting under 30,000 euros.
``The demand is growing fast, very fast,`` said Juergen Sangl, an auto dealer in the town of Landsberg am Lech who sold Schendel his Kona. Sangl decided in 2016 to anticipate the trend and focus on electrics, which are 90% of his business. ``It has gone the way I suspected it would - first a trickle, now a flood,`` he said. Beyond the incentives, customers find electrics more attractive once range exceeds 300 kilometers (186 miles) on a charge.
The pandemic has nonetheless caused huge pain for carmakers. Daimler AG, maker of Mercedes-Benz luxury cars, says it will intensify cost-cutting efforts. ``Our previous efficiency goals covered the upcoming transformation, but not a global recession,'' said Daimler CEO Ola Kallenius.
Automakers in the EU need to reduce the average emissions of their fleets to 95 grams of carbon dioxide per kilometer driven starting next year. That's equivalent to 57.4 miles per gallon of gasoline.
To achieve that, manufacturers will have to lift electric sales from 7% to 12% of the market, according to advocacy group Transport & Environment. The new limit is part of the EU effort to comply with the 2015 Paris climate accord to reduce carbon dioxide emissions, blamed by scientists for global warming and accompanying climate change.
The U.S., with cheap gasoline and a federal government that wants to roll back fuel economy requirements, is lagging the rest of the world in electric vehicle sales and launches. But since automakers have to develop vehicles to sell globally, and some companies see electric cars as the future, the U.S. is starting to get more models. General Motors CEO Mary Barra has promised an ``all-electric future,'' with the company developing 20 electric models to sell globally by 2023.
President Donald Trump wants to roll back automotive fuel economy requirements enacted when Barack Obama was president. But the rollback has been challenged in court and it's uncertain which standards automakers will have to meet. If Trump loses the election in November, it's possible that Joe Biden, the presumptive Democratic candidate, could reimpose the Obama-era standards.
Last year, automakers sold 236,000 fully electric vehicles in the U.S., only 1.3% of the 17.3 million new vehicles that were purchased.
In China, a reduction in subsidies led to a slowdown in electric sales late last year, but the government is moving ahead with its requirement for more low-emission vehicles over the long term. Electrics were 4.9% of the market.
Saul Lopez, e-mobility manager at Transport & Environment, said that European automakers appear on track to meet the C02 goals. He noted, however, that carmakers often seem eager to sell enough cars to meet the requirement, but not much more. Some electrics have sold out.
The reason: ``The carmakers make poor margins on electric vehicles, and good margins on SUVs,`` he said: ``At the end of the day, it's a compliance-driven market.''


Clic here to read the story from its source.