In the last period, electric and hybrid vehicles have managed to carve out increasingly important slices of the market.
The global automotive market has been grappling with the semiconductor and supply chain crisis for some time now, with a worrying drop in registrations compared to the previous year. The semiconductor crisis has imposed a series of production stoppages on car manufacturers, to varying degrees, and a gradual elimination of certain options and accessories from their price lists. A clear example of this are Peugeot and BMW which, recently, have respectively converted digital speedometers into analogue ones and eliminated driving aids such as the head-up display. The slowdown in production has consequently blocked the delivery of new cars, with waiting times of over 6 months.
In this tragic scenario, however, there has been an increase, in total contrast, in the propensity of consumers to buy electric cars. In the last period, in fact, electric and hybrid vehicles have managed to carve out increasingly important market shares. The most recent data shared by the European Automobile Manufacturers’ Association (ACEA), show a market share of fully electric and plug-in hybrid vehicles close to 20% of the total in the third quarter of 2021. While electrified versions grew 57% year-over-year for a total of 212,000 units, plug-ins achieved a 43% increase for a total of 197,000 units.
The numbers are strengthened by the almost vertical collapse of diesel versions, which are slowly disappearing from circulation, at least in the “purest” versions. This is an obligatory and necessary clarification, since there are various hybrid solutions available on the market that run on diesel rather than petrol. To find diesel cars at the top of the charts, it is necessary to go back almost 10 years, a date that is really very far away.
Fuel prices
To accentuate the collapse in sales of endothermic vehicles, fuel prices have also risen in recent weeks, especially in Italy, almost without limit. While petrol seems to have slowed down to 1.7-1.8 euros per liter, a much higher value than in recent months, diesel continues to record stellar increases that have not occurred since 2014. As if that were not enough, among the intentions of the Draghi government, there would also be the desire (not officially confirmed) to level the price of diesel to that of gasoline to discourage its purchase.
In this regard, Massimiliano Dona, president of the National Consumers’ Union, pointed out that the Government should intervene with a series of maneuvers to contain the increase in the price of energy goods and provide a clear support to citizens. The increase in fuel also affects, almost indirectly, the cost of living, starting with all the basic necessities that are transported on wheels. Again according to Dona, since the beginning of the year a full tank of 50 liters costs about 15 euros more for gasoline and 14 euros for diesel, with an increase of 21 and 22% respectively.
In addition to diesel and gasoline, methane has also registered a very strong increase, costing up to five times more than the price we were used to. The increase in the value of methane could also lead, in the short term, to an increase in the price of AdBlue, the additive introduced with Euro 5 and Euro 6 diesel engines to reduce nitrogen oxide and NOx.
What is the sentiment in Italy?
A recent Global Automotive Outlook study that surveyed 8,000 consumers (in China, France, Germany, Italy, Japan, the United Kingdom and the United States) reveals that the percentage of drivers intent on buying an electric-only car has doubled since 2019, from 11 percent to 25 percent globally. And in Italy? The survey reveals that 38 percent of Italians surveyed will most likely purchase a BEV solution as their next car; this is a high percentage and even higher than the average in some European states (with France and Germany standing at 14 and 17 percent, respectively). However, there remain a number of concerns related to battery autonomy (42%), the scarcity and non-homogeneity of recharging points (41%) and the price of the vehicle (30%).
This last aspect is the one least feared by Italians, defined as “bev belivers” who, survey in hand, would not be willing to give up the purchase even in the face of a list 15% more expensive than the endothermic solutions. An encouraging result even if it does not take into account the micro-situations that may exist region by region, certainly a substantial and constant help from the Government with a series of maneuvers could help in this regard. The survey shows that consumers, especially current buyers, are faithful to their choice (92%) and on average inclined to buy online (42%).
How to achieve an even higher market share?
In order to make the purchase of electric cars more attractive, as mentioned, a constant manoeuvre on the part of the Government is necessary to allow easier access to the price lists of the numerous solutions offered by manufacturers. Numerous, because in recent months several solutions have arrived on the market with brands that have decided to embrace in a more concrete and solid way the process of electrification. To date, almost all brands offer at least one 100% electric solution in virtue of the change of pace expected in the coming years and the bonuses made available by the Government and the regions are never sufficient and are exhausted in a very short time.
Autonomy, on the other hand, is an aspect that still frightens many consumers who still travel with endothermic vehicles, even if the latest technological advances allow, in some cases, respectable mileage and possible future software updates could further increase autonomy. An example is given by Audi that, just in recent days, has increased the autonomy of the Q4 e-tron by 5% (about 30km) with a simple update.
Perhaps the biggest obstacle that will take some time is the location of the columns in the city, outside the city and especially on the highway. For those who drive an electric car, finding out where the columns are is not just an exercise in knowledge, but a real necessity. However, thanks to what is foreseen in the National Recovery and Resilience Plan of the Draghi Government, 750 million euros are on the way to create 7,500 recharging points on freeways and almost 14 thousand in cities.
Over the next few months we could therefore arrive at having a real support also for our trips out of town.
