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Companies and Governmental Roadmap for ICE Fade Out

Which is the plan for some companies and the governmental roadmap for ICE fade out?
A parkin lot with a singaling in the floor saying
© Unsplash

In a world increasingly concerned with sustainability and the environment, the roadmap for phasing out ‘internal combustion engine’ (ICE) vehicles has become a key priority for governments around the world. Many countries have pledged to phase out ICEs or have ambitious targets for vehicle electrification in the coming decades.

This article aims to:

  • describe the transition from ICE vehicles to E-Mobility from a business and government perspective.
  • provide recommendations for the deployment of public EV charging infrastructure.

The next graph shows the roadmap for some of the major OEMs and countries for phasing out ICE vehicles.

A graph that shows different flags from countries around the world and logos from different OEMs in a timeline from 2025 to 2050, showwcasing the registration of new combustion vehicles.Click to expand

Politicians and OEMs are focusing on phasing out ICE. PEM Motion (2023)

The roadmap for some of the most important OEMs and countries to phase out ICE vehicles is closely linked to the concept of market share. As the automotive industry moves towards more sustainable practices, these OEMs and countries are strategically aligning their efforts to reduce the production and consumption of internal combustion engine (ICE) vehicles.

This transition has a direct impact on the market share of companies in the automotive sector, as market share represents the proportion of consumer spending on products within a specific market category. With the decline of ICE vehicles and the rise of electric and alternative fuel options, companies are vying to capture larger portions of this evolving market share, leading to intense competition and innovation within the industry.

An example of the impact of E-Mobility and its market share over the coming decades is shown below.

A graphic that shows how much is the market share of EVs by 2040 in different OEMs like BMW, Mercedes Benz, etc, and examples of news from digital newspapers shocasing the different actions taken by this OEMsClick to expand

E-Mobility has reached the center of society. PEM Motion (2023)

As governments implement incentives, subsidies, and infrastructure development to accelerate the adoption of electric vehicles (EVs) and other forms of E-Mobility, consumer preferences are shifting.

Goverment support for E-Mobility has a direct impact on the market share equation, as companies that invest in and embrace these new technologies stand to gain a greater share of the evolving market share. The roadmap’s objectives align with these government initiatives, creating a synergy that is shaping the future of transport.

Governments are boosting policies to promote EV deployment.

  • In 2021, there was an unprecedented increase in electric cars, with about 16.5 million on the world’s roads, up from 10 million in 2020.
  • Governments increased their policy focus on electrifying road transport in 2021, setting concrete milestones to drive emissions reductions towards net zero targets.
  • In addition to focusing on ambitions and targets for EVs and bans on ICE vehicles, governments launched policy tools to accelerate the deployment of strategic EV charging infrastructure and supply chains.

A bus in a charging station parked Charging Station. Unsplash (2022)

“Getting Rid of ICE Vehicles” is the global target.

  • Based on 2021 sales volumes, around 25% of the global car market is subject to a 100% EV sales target, or ICE ban by 2035, according to government announcements.
  • China, the leading EV market, has progressively reduced subsidies for new energy vehicles (NEV) as sales reached 16% in 2021 – more than tripling from 5% in 2020.
  • China recently announced a target to develop sufficient charging infrastructure to meet the needs of 20 million NEVs by 2025.

Example of a congestion of vehicles and traffic in a city. Congestion of Vehicles. TUMI Database (2018)

Amid the global push towards sustainable transport, a powerful contender has emerged on the horizon: Asia. As the automotive industry accelerates its transition to E-Mobility, this dynamic continent is positioning itself to take the lead. With a convergence of innovative technologies, ambitious government policies, and a collective drive for greener solutions, Asia’s role in shaping the future of transport has never been more pronounced.

Asia wants to lead the way to E-Mobility.

  • Thailand and Indonesia aim to lead the region’s EV markets and supply growing demand in other Asian countries.
  • In 2021, Thailand, a new entrant to the EV market, announced ambitions for 30% of domestic vehicle production to be ZEVs by 2030 and 100% of new vehicle registrations to be ZEVs by 2035.

An electric bus fleet parked in Chile Electric motorcycles. TUMI Database (2018)

On the other side of the world, a pioneer in sustainable mobility is emerging from the vibrant landscape of Latin America – Chile. Recognized as one of the most advanced countries in the region, Chile’s innovative steps reflect a broader global shift towards E-Mobility.

Chile, one of the most advanced countries in Latin America.

  • In Latin America, Chile is a leader in the EV market. Its capital city, Santiago, has one of the largest fleets of electric city buses outside of China.
  • Some cities in Colombia have established procurement programs for electric buses to support national targets of 10% of urban bus sales to be ZEVs by 2025 and 100% by 2035.

Alt text Electric bus fleet. Yutong Bus (2018)

The efforts of these regions and others around the world, underscore the critical role of visionary policies in advancing sustainable transport. By examining their approaches, we extract key recommendations that can serve as a compass for policy makers navigating the complex terrain of E-Mobility and related issues, including EV charging infrastructure.

Key recommendations for policy makers

Break down the silos:

Institutional structures need to be rethought and reorganized to promote discussions on EV charging infrastructure across sectors (energy, transport, and urban planning).

Tailor your strategy:

Collect relevant transport and associated data to clearly understand your jurisdiction. Identify the EV types and users with the most substantial presence and needs.

Showcase EV charging as a political priority:

Attract private investment by signaling that the transition to EVs is at the top of the agenda. Facilitate communication between stakeholders.

Encourage standardization:

Ensure that users have access to transparent and reliable information on charging points and prices. Ensure a high-quality charging service by including performance requirements in public tenders and support measures.

Future-proof infrastructure:

Carefully consider your targets for future fleets and other transport strategies and integrate them into planning. It is necessary that EV charging solutions favor the use of low-carbon electricity.

Conclusion:

As utilization rates are likely to be low in the early stages of deployment, policymakers at all levels have a critical role to play in reducing range anxiety and encouraging market-driven solutions for the installation of the charging network.

Facilitating communication with the public; issuing mandates and regulations to suppliers, contractors, utilities and other stakeholders; organizing public tenders; offering financing or loan guarantees, etc.

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Exploring the World of Electric Mobility: Key Concepts and Strategies

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