The majority of our focus is placed on the latest strategies and innovations that bring new energy vehicles (NEVs) into the mobility landscape. However, the burning conversation is whether certain countries are ready to take on the challenge of electrification.
We hear a lot about Europe, the US, and China, but studies should be comprehensive in order to meet climate goals and change the way nations approach electric vehicle (EV) adoption.
This is where EY shows its support, through data and insights; it changes the way we look at the globe based on how ready certain countries are for a sustainable future. The data and insight of course refers to its Global Electric Vehicle Country Readiness Index, which assesses 10 markets based on supply and demand, as well as regulations.
The Index covers the highest performing markets for EVs with China at the top—with no surprise as the country has delivered exceptionally in the wake of alternative vehicle demand. Looking at a single page of insights, there are some key statistics and figures to represent the success of countries and their responses to the growing demand for electric cars.
From the UK angle, EY’s Electric Vehicle Lead Mari Bengtsson says: “It’s encouraging that the UK remains one of the frontrunners in pursuit of an effective transition towards EV adoption, but there is still scope for significant improvement.
“As the clear global leader according to the Index, China has demonstrated the impact that appropriate regulation along with a localised supply chain and robust infrastructure implementation can have. There are lessons to be learned from that for the UK market, and the onus will continue to be on Original Equipment Manufacturers (OEMs) and the Government to collaborate on this challenge going forward.”
The EV readiness data provided by EY
The data in the Index suggests a number of things, but can be broken down into a few key areas.
According to the report, 55% of global EV production is expected to come from China by the end of this year, which comes at no surprise as the likes of BYD and other major automotive companies spread their supply across continents. The US is ranked as the second in the rankings for EV leadership with an expected share of 11% of the market, which exceeds Germany at 10%.
Looking specifically at the UK though, it will account for a minor percentage of the market at just 1% despite its efforts to establish itself within the EV conversation. This is perhaps where government intervention is required to not only bring the nation into a more sustainable era, but allow more opportunities to grow. This is likely to come from battery production as the UK strives to overcome past collapse to deliver more EV battery cells.
“The resilient growth the UK has seen in new car registrations in recent months has been supported significantly by increasing EV sales. Indeed, the growing demand from consumers has played a key role in the UK retaining its status as a world leader for EV readiness, but challenges persist,” says David Borland, EY UK & Ireland Automotive Leader.
“Given the declining residual values of EVs and the difference between fleet and retail sales along with the ongoing infrastructure hurdles highlighted by this report, such as the UK trailing Europe for the number of charge points per EV, the longevity of strong demand and the positive impact it is having on the UK’s EV transition prospects appears uncertain. Going forward, it will be critical for not only the number of EV chargers in the UK, but the location and speed of charging infrastructure, to be prioritised.
“While there are positives, there is a long way to go for the UK to compete with the world’s leading EV markets, particularly in relation to supply and regulation. Specifically, regulatory incentives and support have room for improvement if the UK is to be seen as a top destination for attracting Foreign Direct Investment in the EV space.”
The EV sector is delivering a much more global approach to automotive. As partnerships encourage more buy-in to different countries and their businesses, the market is becoming more global and EV players are entering new areas while generating meaningful change.
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