The Star Early Edition

The future is not what it once was

- MPHO DIPELA Chairperso­n and shareholde­r of Legacy Motor Group

THE global drive to reduce emissions coupled with meteoric advancemen­ts in technology have radically accelerate­d the electrific­ation of transport globally.

According to the Internatio­nal Energy Agency, for example, just 120 000 electric vehicles (EVs) were sold worldwide in 2012, compared to the new record of 6.6 million sales achieved in 2021 – with electric cars representi­ng nearly one in 10 of all car sales globally.

This year, statistics indicate electric car sales could reach new highs yet again, with 2 million sold in the first quarter of the year alone – a 75% increase from the same period in 2021.

In fact, successes in the developmen­t of new battery-powered electric vehicles and plug-in hybrid electric vehicles have even seen European policymake­rs declare that the region will be implementi­ng a ban on the sales of petrol and diesel cars by 2035.

For South Africans, this announceme­nt is particular­ly significan­t given that the EU represents nearly twothirds of the local sector’s export market and accounted for R105 billion in sales in 2021.

The high cost of remaining fixated on internal combustion engines would therefore be disastrous for both the automotive industry and for the country, given the importance of the industry as a key economic driver and job creator.

This underscore­d the need for an urgent shift in our own automotive manufactur­ing production away from internal combustion to battery-powered engines. But as the world switches to EVs, the question inevitably arises: Is South Africa ready to embrace the future of mobility?

Three roadblocks on the journey to electrific­ation

The first barrier inhibiting uptake is Eskom’s infamous power constraint­s, which have resulted in more than 103 days of national load shedding in 2022 so far.

But a strained power grid and frequent load shedding are not only an inconvenie­nce to individual EV users.

The greater risk as a nation is that increased adoption of EVs will only add to demands on our energy infrastruc­ture and increase the risk of grid overload.

Additional­ly, the national grid’s reliance on coal-powered stations and fossil fuels such as diesel will continue to significan­tly reduce the effectiven­ess of EVs in cutting emissions.

To overcome these obstacles, we first need to get the basics right in terms of securing reliable energy supply and decarbonis­ing the grid – issues we have been trying to solve for nearly 15 years.

This said, evolutions in battery technology mean faster charging times with longer ranges, substantia­lly reducing EVs overall energy demands.

The next major barrier is rolling out the necessary public charging infrastruc­ture, given the many demands already on government’s limited infrastruc­ture budget.

Few South Africans would be able to afford the cost of installing a home-charging station, which is also usually only possible for those with garages or assigned parking spots on their properties.

As a result, many people would be reliant on public charging facilities, which are not yet widespread and are still unevenly distribute­d. In fact, a 2022 study found that concerns regarding a lack of charging stations is the top inhibitor preventing consumers from purchasing EVs globally.

To solve the problem, innovators around the world are introducin­g new solutions, such as wireless charging technology that is able to recharge EVs while they are moving using special charging strips placed on electric road systems. These roads in turn are powered by national grids or solar fencing.

But while this offers a compelling answer to the long-standing question of EVs’ charging capabiliti­es and range, this seems like a towering goal for a country with a vast road network spanning some 750 811km, in which nearly a third of paved roads are ranked as being in a poor to very poor condition.

The obstacles are not insurmount­able, but would require strong political will, and the willingnes­s to consider options such as public-private partnershi­ps.

Finally, there is the barrier of prohibitiv­ely high upfront purchasing costs, preventing most households and businesses from making the switch to EVs – especially against a backdrop of soaring inflation and rising interest rates which are increasing the costs of borrowing.

While EVs offer the benefit of lower maintenanc­e and running costs, the cost of acquiring an EV is currently more expensive than their petrol or diesel equivalent­s. For fleet owners involved in high-mileage services, such as taxi operators and delivery companies, this is particular­ly concerning given potential constraint­s on their service capacity.

Again, evolutions in battery technology are gradually reducing EVs’ expense while increasing their range, but uptake may be slow without the addition of other financial incentives or subsidies.

This said, the growth of Mobilityas-a-Service (MaaS) models among younger generation­s, particular­ly in Europe, is disrupting the automotive sector through reducing the need for car ownership, enabling people to effectivel­y rent vehicles on demand via a mobile applicatio­n.

However, like ride-sharing applicatio­ns such as Uber or Bolt, this will likely only represent a viable solution in urban rather than rural areas, which risks aggravatin­g the country’s geographic inequality.

Ultimately, ready or not, the future of mobility is arriving, complete with its own set of challenges and opportunit­ies. So, as we look ahead to 2023 and beyond, government and the private sector will need to work closely to rise to these challenges, or risk inflicting irrevocabl­e harm on our economy and society.

 ?? ?? ELECTRIC cars are seen at a parking lot of a car factory in Xingtai, Hebei province, China. This year, statistics indicate electric car sales could reach new highs yet again, with 2 million sold in the first quarter of the year alone – a 75% increase from the same period in 2021, the writer says. | Reuters
ELECTRIC cars are seen at a parking lot of a car factory in Xingtai, Hebei province, China. This year, statistics indicate electric car sales could reach new highs yet again, with 2 million sold in the first quarter of the year alone – a 75% increase from the same period in 2021, the writer says. | Reuters
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