Reasons to be cheerful about the UK electric vehicle market

The UK has made significant progress in preparing for the mass adoption of electric vehicles, writes Catherine Hutt, in charge of the SMMT’s Electric Vehicle Group

A year ago I wrote an article for GreenFleet magazine explaining how the UK was ahead of the world when it came to bringing electric vehicles to market. This year, I’m delighted to say, we still have reason to be cheerful – but we can’t afford to take our eye off the ball.

Significant progress has been made in the last 12 months. Behind the scenes, many aspects of the emerging electric vehicle (EV) market have been considered and, in some cases, resolved.     

The jigsaw puzzle of the EV industry is starting to take shape; we have the purchase incentive programme, the infrastructure programme, technical issues are being resolved, manufacturers and suppliers have invested significant time and resource, battery technology is becoming better understood – the background work is well on its way.             

There is, of course, still a great deal of work to do, but in general we have ‘set the stage’ for the EV market to grow.
    
It is worth mentioning at this stage that I am following the SMMT Electric Car Guide’s definition of Electric Vehicle (EV) as the umbrella term for any vehicle that is powered, in part or in full, by a battery that can be directly plugged into mains electricity, including pure-electric, plug-in hybrid and extended-range electric vehicles. I will focus on passenger cars for this article as the messages relate directly to the introduction of the consumer incentive for electric cars which begins in January 2011 (25 per cent off the price of the car, up to £5,000).

ALL ABOUT THE CONSUMER
Having prepared for market growth, we need to grow the market! Now is the time to focus on the consumer, all consumers and nothing but the consumer.
    
It’s over 100 years since the automotive industry introduced a technology that changed the way people viewed transport. Back then, car salesmen had to convince customers they wanted a motor car instead of a faster horse. It was a hard sell. People were used to the horse, knew how to operate it, thought it met all of their transport needs and, frankly, didn’t see the appeal of the motor car.
    
Today we have a similar challenge. People are used to using internal combustion engine cars for every kind of journey and don’t see the appeal of adapting their transport habits in order to utilise different technologies in different circumstances. We all know EVs aren’t designed to travel long distances, but they are ideal for the large majorities of journeys made in the UK on a daily basis.
    
Not many people know that the average journey length in the UK is only 8.6 miles. Nor do they know the average daily mileage in the UK is just 25 miles.
    
Yet EVs are ideally suited to these journeys and have the potential to improve urban environments by reducing noise and improving air quality. Until the average consumer understands their own transport pattern, EVs will continue to be a hard sell. Accepting the fact that not many consumers understand their transport patterns should focus our efforts on the few who do.

WHY EARLY ADOPTERS ARE IMPORTANT
Early adopters exist for a reason. Early adopters will test, feed back and help develop a product so that it is ready for the mass market. On the other hand, the mass market will not understand, let alone accept, small mistakes. Every new product needs refining and EVs are no different.
    
Concentrating on consumers who are likely to be open to new technology is far more valuable than aiming for the mass market from day one. Adapting our approach according to the stage of industry development is vital. Currently we are in the introduction stage and need to make the most of this, if the market is to grow in a swift and sustainable way.
    
If we embrace the early adopter community and harness its feedback we will be in a far stronger position to progress and mass market can become a reality.
    
Whilst mass market might be the end goal, we cannot ignore the journey.

THE UK IS THE IDEAL TEST BED
Fortunately we have a relatively small country. This means we drive relatively short distances, which is ideal for the EV market and should be seen as an advantage for the UK.
    
The UK’s infrastructure programme is far ahead of many other countries, thanks to government understanding of the need for infrastructure and local knowledge of how to implement an infrastructure network. Again, the size of the country means it is simpler and more affordable to have a pan-UK network, which is inter-operable and reassures EV drivers they can charge their vehicle away from home.
    
In addition to our journey profile, our nation is particularly accepting of, and even welcoming towards, niche vehicles. The proportion of prestige cars, kit cars, bespoke cars and many other niche vehicles is particularly high on UK roads, which means the UK public is used to seeing a variety of vehicles.
    
In our built-up cities, particularly London, only a small number of vehicles is required to achieve critical mass and for new vehicles to be noticed. This means that the impact of having 100 EVs on UK roads will be far greater than having the same number on US roads, for example. The vehicles will be far more spread out in the US and the chances of the public seeing the EV enough to get used to it will be minimal. Again, this is important for the EV industry where initial volumes are likely to be low but where visibility is key to consumer acceptance.

STRONG GOVERNMENT SUPPORT
The continued support for the EV consumer incentive, the Plugged-In Places programme and the Automotive Council are all significant signs that the new coalition government understands the link between the automotive industry, low carbon initiatives and the UK economy.
    
Cuts to public spending are common in today’s world. This makes it all the more significant that financial support for the EV market was not only upheld, but the consumer incentive was announced even before the Comprehensive Spending Review. The reason for this was the overwhelming and unanimous belief within Whitehall that supporting the fledgling EV market “just had to be done”. Despite a reduction in the overall amount committed to this particular policy, the impact it will have on the UK’s ability to compete in a global market is unquestionable.
    
The Office of Low Emission Vehicles (OLEV) has been a key part of this success. The cross-Whitehall team, with people from the Department for Transport, the Department for Business, Innovation and Skills and the Department for Energy and Climate Change, has worked extremely hard to understand the needs of the industry and how, with the right support, the industry can benefit the UK economy. OLEV’s open and innovative approach has allowed industry and government to work closely and productively on a number of issues, which is why the UK is in a strong position. Long may it continue.

THE EV MARKET IN 2011
The next few years will be an extremely exciting time in the EV industry. Many new vehicles will enter the UK market and the face of the automotive industry will have an even stronger low carbon look.
    
The table is taken from the SMMT Electric Car Guide and is a list of electric cars which will be available in the UK between 2010 and 2014. This is an impressive list, especially given the early stage of the industry, and confirms the UK’s position as world leader in the EV market.
    
But will these electric cars be suitable for fleets?
    
Absolutely. In fact, I wouldn’t be surprised if the first market segment to adopt EVs in significant numbers were the fleets. EVs are ideal for many fleet vehicles for a number of reasons:
    
Predictability: A number of fleet vehicles are used for routine journeys, which means the mileage and duty cycle are predictable. Monitoring the fleet in this way makes it simpler to identify vehicles which are being used for short to medium length journeys and, therefore, where an EV might be ideal.
    
Profile: Companies have recognised the value of operating a low carbon fleet for many years. Some companies, such as Green Tomato Cars, have built their entire business model around a low emission vehicle, in this case the Toyota Prius. Operating an electric vehicle fleet is an ideal way to get your company noticed and to prove your organisation’s green and innovative credentials.
    
Driver perks: EV drivers thoroughly enjoy the experience of driving an EV, thanks to the quietness, light handling and swift acceleration.
    
Financial incentives: Electric vehicles are exempt from congestion charges, benefit from free parking in a number of areas, have low running costs and qualify for 0 per cent benefit in kind tax. These financial incentives soon stack up to make the prospect commercially viable and appealing.

CONCLUSION
In summary, the UK is well placed to continue leading the global EV industry. Significant progress has been made to prepare the industry – our automotive expertise, the small size of our country and the coordinated efforts of industry and government have paid off.
    
The next challenge is to capitalise on this advantage and focus our efforts on growing the market swiftly and sustainably. Early adopters will be a crucial part of this growth and if we make sure we get the introduction stage of the market right, the UK industry has the potential to develop quickly to achieve the goal of EV mass market success.

FOR MORE INFORMATION
Web: www.smmt.co.uk