Electric Vehicles have taken the world by storm, with a sharp increase in demand in the major economies of the United States, Europe, and China. The alternative to gasoline and diesel is making a name for itself in the big cities.
However, as per JATO, EVs are recharging at two different speeds, creating a gap between Europe as a fast-charging country and a slow-charging country. And in the USA, it is ZEV and no- ZEV.
Fast-charging Europe includes Northern Europe and other solid economies of the region. The four Scandinavian countries, are Germany, Austria, Switzerland, France the Benelux, the UK, Ireland, and Iceland. They are more than two-thirds of the European car sales volume,
The slow-charging countries include lower income per capita. Mediterranean countries, except for France; Portugal, Central Europe up to Poland, and the three Baltic states.
The problem of slow charging indicates a slow adoption, and hence a wider gap among the countries.
“In Q3 2022 the market share of electric cars in the fast-charging countries was 15%. In contrast, the share drops to 3.8% in the slow-charging markets.”
In the USA, ZEV states are way ahead of no-ZEV states. In simple terms, ZEV means Zero emission vehicle.
California is way ahead due to strict regulations, attractive incentives, and the important role of tech companies such as Tesla. “The Zero-Emission Vehicle (ZEV) programme was designed to achieve California’s long-term emission reduction goals by requiring auto manufacturers to offer sales-specific numbers of the very cleanest cars available”.
By August 2022, 14 U.S. states have adopted both California’s ZEV programme as well as the LEV ( Low-Emission Vehicle) standards. Colorado, Connecticut, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Nevada, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
“The market share gap in Q2 2022 between the ZEV and non-ZEV states was 8.7% vs 3%. The electric car sales in the 15 ZEV states represented 62% of the country’s total. In contrast, they made up 36% of the overall light vehicle market in the USA.”
In my opinion, it is well expected that stronger economies are going to have an upper hand in accelerating any new technology or even boosting the adoption of any new technology. The only issue that needs to be addressed is whether countries with moderate economies can scale up their way and be in trend with the latest technology.
The need for more investments or modified policies as well as incentives is some of the ways moderate economies need to adapt to be in the race and not get lost in the transition process.