Lagging behind another little country

This story first appeared in the May issue of EVTalk – CLICK HERE to download the magazine FREE

We, as Kiwis, have always taken great pride in our achievements on the world stage. Conquering Everest, splitting the atom and being the first country that recognised womens’ right to vote all come to mind.

But a Scandinavian nation of roughly the same as us – by size and population – is beating us soundly in the electric car revolution.

Norway already counts 100,000 people as electric car drivers, New Zealand has just snuck past 1000.

Recently Christina Bu, secretary general of the Norwegian Electric Vehicle (EV) Association, spoke in Auckland to a full house of skeptics and believers alike. Being a slight skeptic myself, first up, I wanted to know if there was anything about the Norwegian psyche which pointed to an early adoption of EVs?

Not according to Bu: “Norway is no more environmentally friendly than any other country,” she admitted, “but we are ambitious. Our aim is a 40% reduction in CO2 emissions by 2030. To achieve such a goal, 23% of new cars sold are now plug-in electrified cars. These vehicles are quick, quiet, cheaper to operate, and kind to the environment.”

Ask fleet managers or finance teams and you’ll find common complaints clouding EV purchases – that the cars are not suitable, that barriers of high capital cost and low range are a problem.

Bu understands this dilemma all too well, but does offer good news.

“In Norway the first batch of EVs were pretty funny-looking, but most people have heard of Tesla by now. Today, the cars look great. In fact, businesses and individuals are so happy they can’t stop talking about them.”

Closer to home, EECA’s transport development manager, Andrew Campbell, expects electric vehicles to become a part of most fleets over the next decade.
“They have fewer moving parts,” he explains, “and therefore need fewer service requirements. As well as this, they’re more efficient and have lower energy costs.”
With 70% of new car sales going to businesses, it makes sense to check if there is any traction in this segment. It’s great to see movers and shakers like Air New Zealand making a commitment to EVs in their fleets alongside energy companies like Mighty River Power and North Power.

This year will see a surge in EV charging infrastructure in the major centres – retailers and service providers are installing charging stations.
European big box retailer Ikea says US shoppers stay an extra 58 minutes when there is charging infrastructure.

Kiwi lease management company Yoogo gives businesses the option to include charging infrastructure and installation costs in the lease price. It also leases used electric vehicles and sources new third-generation Nissan Leafs from the Northern Hemisphere.

Yoogo chief executive David Jenkinson says: “Combustion engines are still our core business but we are trying to support companies to question if EVs are appropriate for their fleet and then make the transition to EVs an easy step not a headache.”

There will always be cynics, but according to Bu, research shows electric vehicles are the best option.

“Businesses are insecure about technology and the introduction of new technology,” she says, “Politicians need to get this rolling. They must be ambitious. This is not an iPhone launch. It’s a car, a paradigm shift, a whole new world.”

As with any significant fleet purchase, questions remain. What, for example, possessed 100,000 Norwegians to fork out for these cars?

“59% of respondents wanted to save money; 24% wanted to save the environment,” she explains. “Plus there are many incentives to make buying an electric vehicle a viable choice. Benefits include access to bus lanes and free public parking. Owners don’t have to pay toll roads and they receive free rides on state ferries.’

Drive Electric chairman Mark Gilbert says: “Christina’s visit should encourage us to really look at the benefits of EVs based on our renewable energy profile; our ability to become more energy independent; buy ‘fuel’ that equates to circa $0.30c per litre; and think of the benefits zero and ultra-low emission vehicles can deliver to NZ’s COP21 commitments. Plus cleaner air; better health standards over time; and, most importantly, the extra $2000 per annum, each EV owner has as discretionary income not being spent on fossil fuels – quite compelling we think.”

Bu’s best advice to businesses looking to make the jump is “Calculate and think deeply about future costs, if you’re worried, incorporate a mixed fleet with traditional cars for longer trips and invest in EVs for pool vehicles within your town or city.

“You’ll save on costs, not just fuel but repair and maintenance. The benefits are many – no gas required, no emissions and it’s cost-effective.’
While the electric vehicle race is in its infancy, it’s hard not to take some inspiration from Norway’s success.

Tesla has New Zealand on its radar, Renault is bring electric models to market, and it’s possible to by the latest Leaf, even though Nissan isn’t selling it.
As Bu so rightly pointed out, with the water, wind and sun are quite accessible here, “is there a better place in the world than New Zealand in which to produce renewable energy?”