Electric mobility begins to gain some maturity. If we compare it with the 1st edition of “Propulsions: which is the most efficient?”, in which we analyzedthe same segments and mileage, we found first, that, after just one year, there are 100% electrical solutions for all the segments analyzed. Secondly, we have also seen a notable gain in competitiveness from 100% electric propulsion in many segments and, for various mileage profiles, particularly in the utility segment, greatly leveraged by the clear commitment of car manufacturers to electric versions of their city options. These are some of the conclusions of the annual study “Propulsions” with companies with fleets between 75 to 200 vehicles.
Considering that the 8 segments of the study represent 86% of the renting market fleet (Supermini (B), Crossover SUV, Small Family (C), Premium compact, Large Family (D), Compact executive , Executive (E) and Small Commercial Van, we note that the gains competitiveness of electric and plug-in vehicles have increased compared to last year's study. If we take into account the most chosen mileage by the companies (30,000 km / year), together with the relative weight of each segment in the fleets, we went from a situation of 53% of usage profiles in which the electrified vehicle had a lower TCO than the others in 2018, to the current 65% in 2019, an increase of 12% in just one year.
It should also be noted that, in this year's analysis, diesel propulsion is no longer competitive in the B segment, and has lost its share since 2018, when last year it was the most competitive in 5 of the 7 utilization profiles considered.
Another relevant analysis for the fleets is to understand where the main cost differences are, between a diesel vehicle and a 100% electric vehicle. Thus, what is perceived and concluded is that, globally, the costs of using a 100% electric vehicle are actually lower than those of an equivalent diesel vehicle. The competitiveness of the electric vehicle vis-à-vis diesel is based on 3 very important components of TCO (total cost of use): taxes, energy costs and maintenance costs.
Main conclusions by segment:
- In the B segment, gasoline is the most competitive offer up to 25,000 km / year. From 25,000 km / year upwards, the most competitive offer is no longer diesel propulsion but electric propulsion. In the most common mileage of the fleets (30,000 km / year), the electric model has a TCO 5% more competitive than the next propulsion (hybrid). It should also be noted that there is still no offer of plug-in hybrid models.
- In the fastest growing segment of the entire automotive sector - Crossover SUV -the offer of solutions is complete, from 100% electric engines to combustion engines. In the analysis of the monthly TCO, the gasoline version is the most advantageous option for mileage less than 15,000 km / year and from that point Diesel is the most economical option.
- The Small Family segment also has a full range of propulsions. As in 2018, the gasoline solution is the most advantageous up to 15,000km / year; in the 20,000 km / year we are at a point where there is a balance of three solutions (Gasoline / Diesel / Electric). Above 20,000 km / year the electric model has the lowest total costs of use.
- The offer of propulsion for the Premium compact segment is also complete. If in 2018 the gasoline version was the most competitive up to 30,000km / year, this year the diesel version is the most advantageous. In fact, based on the kilometer analysis, the gasoline solution is the most competitive for 10,000 km / year, above this mileage and up to 35,000 km / year the Diesel vehicle is the most competitive and from there the electric has the best total cost of use.
- In the Large Family segment, which also has a full range of propulsions, in the kilometer analysis the electric vehicle is the most competitive, except for mileage between 10,000 km / year and 20,000 km/ year, where the Gasoline version is presented as the most competitive. Above 25,000 km / year, electrified models are the most competitive, with an advantage for 100% electric ones.
- In the Compact Executive segment, regardless of mileage, the 100% electric and plug-in versions are the most competitive. In the most common mileage for fleets (30,000 km / year), the difference in TCO from the diesel version to the electric version is 19% or 188 euros per month.
- In the Executive segment, the diesel plus-inversion is the most economical compared to all other engines and also for all other mileage.
- The Small Commercial Van segment does not have hybrid and hybrid plug-in solutions, the diesel vehicle remaining as the most competitive for all mileage.
Thus, the demand for electrified vehicles has intensified over the years, however, even with growth, the penetration rate of electrified vehicles globally is only 2.2%. Portugal has penetration rates of 3.3%, above the European rate (1.8%).
The national operational leasing market, on the other hand, has shown a faster growth in electrified vehicles than that registered by the Portuguese market as a whole and, in this sense, operational leasing has been a driver for the electric transition. We can also see that in the last 3 years, operational leasing has favored 100% electric vehicles, while in the national market, plug-in hybrids have had the preference of consumers.
One of the factors that has most affected the demand for electrified vehicles worldwide is the set of government incentives for the electrical transition. In addition to support for purchases, governments can also develop tax policies that positively discriminate electrified vehicles, which is the case in Portugal, although with different realities for individuals and companies. In this sense, from the cost point of view, green taxation has brought competitiveness to 100% electric vehicles and plug-in hybrids.
One of the ways in which the market is widely consulted is the LeasePlan Mobility Monitor, an annual survey that gathers opinions from consumers and companies on the most pressing issues facing the mobility sector and which included Portugal, with Portuguese drivers being of the most positive in relation to electric cars, with 87% saying that they have a very positive attitude regarding the change to VE and 51% confirming that they intend to switch to an electric when purchasing the next vehicle.
There is a healthy appetite in the Portuguese market for the transition to the electric vehicle, where both companies and individuals show an environmental concern, but also recognize in electric mobility an opportunity to reduce their energy / fuel costs.
The sector and combating climate change
Overtime, and given the governmental pressure to curb CO2 emissions, much has to change, especially given the climate urgency recognized in the Roadmap for Carbon Neutrality. LeasePlan also has its “carbon neutrality roadmap”, the difference being that the target is 2030, the year in which it aims to achieve zero emissions in its total fleet. The main elements of LeasePLan's strategy include raising customer awareness about what’s next in low-emission vehicles, facilitating the adoption of low-emission vehicles with attractive customer proposals developed by the LeasePlan Electric Vehicle Experience Center. LeasePlan is also a founding member of EV100, a new global business initiative designed to accelerate the take-up of electric vehicles and their infrastructure, launched by The Climate Group at the UN General Assembly in September.
The transport sector is responsible for 25% of greenhouse gas emissions in Portugal. In turn, the road transport sub-sector represents around 96% of transport emissions. Bearing in mind that the fleets are assuming an increasing share of automobiles in our country, in view of the objectives set by the Government in the Roadmap for Carbon Neutrality 2050, LeasePlan assumes as its strategic objective the anticipation of carbon neutrality of its customers' fleets until 2030, thus advancing by 20 years compared to the national target.
Considering the goals of the Paris Agreement and the Roadmap for Carbon Neutrality 2050, the truth is that, even considering that these present overly ambitious objectives, if we look at the stock of vehicles circulating by motorization, we are obliged to accelerate the transition to motorizations more sustainable by all means at our disposal. In fact, in 2021, 90% of passenger vehicles on European roads will still be combustion; this figure drops to 70% in 2025 and to a still relevant 50% in 2030. After 2030, we will have 20 years to take the remaining 50% of combustion vehicles off the road.
One of the factors that has most affected the demand for electrified vehicles worldwide is the set of government incentives for the electrical transition. In addition to support for purchases, governments can also develop tax policies that positively discriminate against electrified vehicles, which is the case in Portugal, “although with different realities for individuals and companies”, comments Pedro Pessoa, who adds that “for the transition to be made in private individuals, we found that the tax incentive for companies may be something to consider for this market as well ”.