Features
29 Mar 17

The final countdown for electrification

Most OEMs agree that the countdown to the electric revolution has begun. However, to insure product acceptation, you need more than just a good product: it’s about offering extra services and solutions that make electric life easier.

In the light of stringent CO2 targets and long term sustainability, hybrids are considered the most feasible solution in the short term. By giving the combustion engine some electrical assistance, it needs less fuel to put and keep a vehicle in motion. With zero emissions as the ultimate objective and batteries yielding ever more range, the fossil fuel burning engine will eventually cede its place entirely to electric motors.

Why the e-evolution isn’t happening faster than it is, has to do with charging infrastructure on the one hand, and battery cost plus charging time on the other. The first obstacle is slowly but surely disappearing, pushed by the EU and supported by OEM initiatives like BMW’s ChargeNow. The second aspect is expected to improve considerably over the next years, spurring a proliferation of new models – and supporting services.

Volvo: first EV by 2019
In 2015, Volvo announced one of the automotive industry’s most comprehensive electrification strategies, including a commitment to having its first battery electric vehicle on sale in 2019. According to the manufacturer, range anxiety continues to be addressed from both a technology and recharging infrastructure perspective. It is convinced that over the next three years, EVs will cease being a niche technology and enter the mainstream.

“We have come to a point where the cost versus benefit calculation for electrification is now almost positive. Battery technology has improved, costs are going down, and fleet acceptance of electrification is starting to no longer become a question,” says John Wallace, Global Fleet Director. By 2020, 10 per cent of Volvo’s global sales will be electrified cars. It is his opinion that a key contributor to the success of electric vehicles could be ‘usership’ instead of ownership. Volvo’s sales model for EVs will be adapted accordingly. 

Tesla Motors: setting the pace
Although not mainstream yet – something that might change with the Model 3 – Tesla has an incredible brand awareness. According to the Californian car maker, fleet management and leasing companies are progressively adding EVs to their fleet, while becoming more comfortable with the relevant residual value and SMR budget. “The price of 1 kWh is likely to come down further, to make electric cars more and more affordable for a wide audience”, says Berith Behrens, Communication Manager Benelux.

“As far as our sales approach is concerned: customers can order online as well, so they do not have to physically visit our stores to order their Tesla”, she continues. Incidentally, Tesla does not work with importers and dealers. Moreover, Tesla has a proprietary fast-charger network. The Superchargers along the major motorways allow you to ‘fill up’ 80 per cent of the battery in 30 minutes, the Destination chargers are meant for full charging when you are sticking around.

Hyundai: a different view
Like many of its competitors, the South-Korean automotive group Hyundai Motor sticks to a multi-solution approach for the coming years, with various degrees of electrification – from hybrid to 100 per cent electric. What makes the brand stand out, is that it is the only one to have a single model that can be had with three e-powertrain options: the Ioniq exists as a Hybrid, an Electric and a Plug-In.

The Ioniq Electric targets customers who do not drive long distances. Those that do and still want a zero-emissions solution, can opt for another type of electric propulsion: a fuel cell – basically an EV with its own power plant that runs on hydrogen. Main advantage: fuelling takes just 3 minutes, and it gives you 600 kilometres of liberty. At the Geneva Motor Show 2017, Hyundai presented the FE fuel cell concept as a preview of its 2018 ix35 FCEV successor.

Nissan: e-believer of the first hour
Nissan continues to dominate the e-market worldwide with more than 280,000 EVs sold globally, mostly Leaf (5-door hatchback) and e-NV200 (minivan). “At Nissan we consider EV as part of a full eco-mobility system and an important pillar as part of our Nissan Intelligent Mobility vision”, explains Vincent Gaubert, Marketing Manager Corporate Sales. “In terms of services, we offer a 360-degree approach to electric vehicles, based on several pillars.”

First, Nissan uses a collaborative partnership approach with innovative companies to grow infrastructure across Europe. Second, it is piloting the effectiveness of the vehicle to grid system (V2G) in different European cities, before deploying the technology more widely. Third, it offers scalable energy storage systems fit for domestic and office use. Finally, with Intelligent Get&Go Fleet Solution, TCO is reduced by allowing people to share their cars, increasing the use you get out of a fleet and, potentially, reducing the number of vehicles you need.

Jaguar: promising I-Pace in 2018
One of the brands that caught many by surprise is Jaguar, when it announced it would be launching a midsized full-electric SUV by next year. Built by Magna Steyr in Austria, this Cat of the New Age will be the first ‘generalist’ alternative to the models of a certain California-based car, battery and solar panel manufacturer. Jaguar promises 500 kilometres of range from a 90-kWh battery and some 400 hp distributed over both axles.

As the launch is still another year away, Jaguar Land Rover cannot disclose much about the services that support the adoption of its product, but one of the elements of the package will be the possibility to rent a conventional vehicle for a number of days per year to fulfil the customer’s temporary transport needs which the I-Pace cannot fulfil.  

Volkswagen and Daimler: specific e-brands
Now that the e-Golf offers an NEDC range of 300 km, VW is likely to welcome more EV prospects in their showrooms. From 2020, the carmaker will deploy a new family of e-vehicles under the I.D. brand, with a completely new design, fully dedicated to the specifics of an electric drive. The electrification of the new Volkswagen vehicles is going hand in hand with the digitalization of the offers and the integration of multimodal mobility options.

Daimler’s current electric line-up consists of the B Class and smart fortwo/forfour, but in the meantime, it has figured out an entirely new strategy, based on a fully-fledged electric sub-brand named EQ. Indeed, it has a similar vision to that of Volkswagen, based on four features: connected, autonomous, shared and electric. This EQ brand will offer its customers what Daimler calls an electro-mobile ecosystem, i.e. not only the vehicle itself, but an overall package with tailored offers and services regarding the infrastructure, for example.

BMW: an ‘i’ for the future
Just like the e-Golf, the upgraded BMW i3 now offers a range of 300 km. Aware of the fact that charging convenience at home and on the road is paramount to the success of EVs, the Bavarian car maker has entered a joint venture with Volkswagen, Porsche, Daimler and Ford to build a high-power DC charging network with 400 ultra-fast charging stations along the most important roads in Europe.

In terms of services, BMW has a product called Digital Energy Solutions, which allows you to customize the charging infrastructure to meet your company’s requirements. In addition to in-house charging systems, Digital Energy Solutions also offers home charging solutions and public and semipublic charging stations. The solution developed for your company includes access to public charging networks such as ChargeNow. 

More about electrification, safety, new fleet car launches and the strategy of the car manufacturers in Europe can be found in our new Fleet Europe magazine. Request your copy by sending a mail with your contact details

Authored by: Dieter Quartier