Increasing Electric Vehicles Sales Create Pressure to
Increasing Electric Vehicles Sales Create Pressure to
Standardization and strategic partnerships across the ecosystem will be key even as energy companies like
Rising battery
With two EVs for every charging point,
As the EV market grows, both public and private charging infrastructure will need to be rapidly developed. Public and semi-public stations will need to expand availability and improve quality. OEMs are already investing in direct current (DC) ultrafast charging that address challenges related to lengthy charging times. In parallel, the number of residential charging points will need to be increased.
To learn more, please access Latin American Electric Vehicle Charging Infrastructure Growth Opportunities and Latin American Hybrid and Electric Vehicles Growth Opportunities or contact sathyanarayanak@frost.com for information on a private briefing.
Challenges Notwithstanding, Market is Primed for Growth
While the market holds much promise, several challenges remain. These include the lack of standardization vis a vis charging connectors, implying that an EV connector will not necessarily work across all charging points. This has been exacerbated by uneven distribution of charging points wherein some areas, particularly important urban centers, have several charging points, whereas others have either very few or none.
Limited charging points apart, EV owners also have to contend with issues like broken chargers, inactive charging points, and extended waiting times. Nascent public and semi-public charging infrastructure in the region, moreover, dampen EV sales, pushing consumers towards hybrid vehicles.
Despite such challenges, the market is primed for growth. Sensing its revenue generating potential, leading energy companies in the region such as
Concerted efforts are ongoing to fast-track the development of charging infrastructure. For example, private initiatives have resulted in the installation of large EV charging stations. This represents a virtuous cycle, spurring mutual growth in EVs and related charging infrastructure. For instance, in
Currently, the region has around 21 charging providers, who compete on factors like cost, technology, and contractor relationships. Partnerships among energy providers, OEMs, and charging point manufacturers participants across the charging ecosystem are emerging as a key strategy to enhance charging network volumes, coverage, and quality. Recent examples include
Our Perspective
To begin with, automakers and charging infrastructure providers and operators should work in tandem with their respective governments to create an enabling environment for EV uptake. In parallel, they should focus on raising awareness among consumers about the long-term RoI linked to EV usage.
Partnerships between OEMs and EV charging companies should be aimed at installing chargers at dealerships for customer use in emergencies. Another strategy would be for OEMs to offer portable chargers along with EV purchases to customers for use either at home or at work. Such value-added products and services will boost market prospects, while ensuring a superior customer experience both in terms of service and ownership.
At the same time, OEMs and charging companies should deepen their partnerships to both increase sales and strengthen charging infrastructure. For instance,
Standardization of chargers will catalyze market development. Accordingly, EV ecosystem participants should work with government regulatory authorities to establish standard connectors for AC and DC systems that work across the entire region.
(C) 2023 Electronic News Publishing, source