Setting the pace for electrification for international fleets: where and when to prioritise your efforts and budgets
Fleet managers throughout the world are increasingly focused on the transition to electrification. Going “green” allows them to reduce their carbon footprint in a bid to achieve their climate goals, as well as face rising costs, as electrification can ultimately be more cost-effective in the long-term. This explains why, despite the overall drop in new car registrations caused by a range of unforeseen factors on the world stage, such as the micro-chip shortage and geopolitical issues, high levels of resilience have nevertheless characterised the demand on electric vehicles. However, making the transition – especially when it involves making decisions that affect multiple countries – is a complex process. There are abundant factors to consider like varying data across countries, EV adoption, infrastructure, taxation and incentive schemes, green offer, BEV-TCO parity, sustainability relevance… The list of critical factors drags on and on. The good news is that we are committed to facilitating the change from end to end, helping you navigate your way through the variety of data and crucial factors by gathering this information in our 2022 Mobility Guide. With detailed information from 42 countries and data from 1.7 million vehicles across the globe provided in the guide at your fingertips, if your fleets are deployed across a number of national contexts, you’ll have a much clearer picture of where to start, how to allocate your budget and which countries to prioritise.
To get you started, you’ll find below key factors that will feed into your decision-making, and how the Mobility Guide has been built to best serve you. The data-driven approach allows you to take a wide-angle view, access detailed guidance, and offer you a mobility and sustainability compass to help you plan the nature and timing of your journey.
Analysing EV maturity to rank countries and markets
Given the sheer diversity of markets in various continents, it was essential to devise a scoring system whereby they could all be compared, giving us a like-for-like EV Maturity Score marked out of 100. We set out to create the most objective score possible, fully recognising that hurdles exist in every country, varying from range anxiety to charging infrastructure complexity, and from affordability to local rules and regulation.
In reaching the overall total, the scoring system analyses six key criteria:
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EV adoption, i.e. electric vehicle market share versus the entire industry volume (in which BEV takes precedence over other powertrains). This accounts for 25% of the score.
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Charging infrastructure, including the quality, quantity and complexity of public charging stations (20% of the score).
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Taxation and regulation at national level, including incentives (20%)
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Green powertrain offering: the breadth of BEV model choices available (15%)
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BEV TCO parity – to assess the competitiveness of operating a BEV (15%)
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Sustainability relevance – the measurement of carbon intensity at the grid and whether it comes from renewable resources or not (5%).
The guide also looks at adoption by industry and passenger car segment, and offers a TCO comparison, country by country, between BEV and ICE, illustrating that going fully electric is now cheaper than a comparable petrol car in many countries.
Three levels of maturity
Analysis of all this complex data has enabled us to identify three broad maturity levels across our global markets.
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Category 1 features 11 “developed” countries in Western and Northern Europe like the Netherlands and Finland where EVs have established a strong presence or are likely to do so in the near future.
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Category 2 consists of 10 “transitioning” countries that have shown a concrete interest in electrification like Japan and Spain. However, local challenges mean that this is more likely to happen in the mid-term.
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Category 3 comprises 21 “Emerging” countries where the hurdles of charging, affordability and availability are still difficult to overcome. This category includes Malaysia, Brazil and India.
Country snapshots
We then tackle all 42 countries one by one, in alphabetical order from Algeria to the USA, starting with the ALD fleet size and the overall EV maturity scoring. Graphics help break down the powertrain mix for both passenger cars and LCVs, and statistics explain the growth in 2021 vs 2020. The top 3 BEV and LCV vehicles for that country are highlighted. The other five categories that feed into the EV Maturity score are then outlined with graphs, charts and statistics.
Also in around 25 selected countries, we offer a detailed look at the taxation and regulation situation, including registration tax and ownership benefits, employee benefits, EV infrastructure subsidies, company tax benefits and purchase subsidies, amongst others.
A resource with immediate application
The clarity with which our Mobility Guide is laid out immediately suggests actionable insights. A close reading can help you decide exactly which countries to prioritise in your international fleet policy, depending on the maturity of your own company – whether it belongs to those who are starting out on their transition journey, or those whose transition policy is already relatively advanced.
Any decision-making journey on such a global scale is complex, and tools such as this guide and the compass it offers are a valuable resource in crunching the numbers and simplifying the outlook. The guide has already been a success story, with some of our key clients using the country classification to pace their transition. Here’s what Bayer’s Head of Global Mobility Jan-Hendrik Rauhut has to say: “ALD’s Mobility Guide served as a foundational pillar within our strategy that allowed the translation of our framework at a country level. Thank you for your valuable support in this journey”.
Now it’s time to find out for yourself! Download the guide by filling in the contact form here