Slow EV roll-out by auto makers is delaying the switch to EVs

Wipro, State Bank of India, BSES Rajdhani Power Ltd., BSES Yamuna Power Ltd, Shuttl, and Bounce making progress in driving electric mobility in India, says The Climate Group that runs the global EV100 initiative.

While many global companies are charging ahead on electric vehicles (EVs) to address the climate crisis, tackle air pollution and meet growing customer expectations, they are increasingly confronted with a lack of EV supply, according to a new report of The Climate Group that runs the global EV100 initiative.

EV100 initiative brings together leading companies – which also include some of the Indian firms like Wipro, BSES Yamuna, Shuttl, State Bank of India (SBI), BSES Rajdhani Power Limited (BRPL) - to accelerate the switch to electric transport and make EVs the new normal by 2030. They represent the fastest moving big business buyers and have a strong understanding of the state of the EV market.

As per this year’s EV100 Progress and Insights Report, members are speeding ahead, with approximately 80,000 EVs already deployed and over 10,000 charge points installed to date. However, the slow roll-out of electric vehicles from the auto industry is the top barrier to switching their entire fleet, cited by 79 per cent of respondents - up by a third from last year.

As corporate ambition shifts gear, the auto industry is not responding fast enough for supply to match demand. While the European EV market is expected to grow in response to tough EU emissions rules, the US in particular risks being left behind globally – with the right for State level leadership on vehicle emissions standards being fought out in the courts later this year.

Helen Clarkson, CEO, The Climate Group, said, “For years automakers have raised the lack of demand as a problem for moving faster on electric vehicles. Our report shows that big business demand for EVs is increasing but is still not being met by manufacturers. If automakers want to stay competitive, they need to shift to a higher gear on producing EVs – or risk losing their largest customers.”

Jim Massey, Global Vice-President, Global Sustainability, AstraZeneca, said, “There are obstacles we face, such as infrastructure, such as access to the electric vehicles we’re going to bring into our fleet. So we’re putting out there the demand and the need for infrastructure so that all of us – government, other sectors – can help solve this problem together.”

New joiners

Five more companies – which included Schneider Electric and Danfoss Group - have joined EV100 in February from the UK, France, US and Denmark. Schneider Electric works on the digital transformation of energy management and automation. The company will convert its fleet of 14,000 vehicles in over 50 countries, as well as installing EV charging at major office and factory sites for employees.

Leonid Mukhamedov, Executive Committee Member, Chief Strategy Officer, Schneider Electric, said, “At Schneider Electric, we committed to net zero operational carbon emissions by 2030, in line with a 1.5°C science-based climate trajectory. Joining EV100 is a key step to deliver this ambition. ”

Danfoss makes energy efficient technologies that enable reduced energy consumption and efficient resource use. Danfoss is committed to electrifying its entire fleet of 2,300 leased or owned company vehicles to EV by 2030, as well as supporting EV uptake by staff by installing charge points at all its factories. Kim Fausing, President & CEO, Danfoss Group, said, “E-mobility is a cornerstone for a sustainable energy system and joining EV100 is a natural next step for Danfoss to support this transformation toward accelerated infrastructure development and demand.”

Points to ponder

• The Climate Group calls on automakers to turbo charge EV supply to meet market demand and deliver on their responsibility to tackle climate change;
• International business members at the forefront of the auto industry have already committed to go electric by 2030
• Members of The Climate Group’s EV100 initiative have committed over 2.5 million vehicles by 2030 and are set to save 42 million metric tons CO2e, equivalent to the annual emissions of 11 coal power plants
• The membership of EV100 has more than doubled in the last year, rising from 31 to 67 members in 80 markets