Europe: Electric vehicles

Automotive sector to overcome economic and environmental challenges

Today, major changes are under way in the automotive sector to overcome economic and environmental challenges facing Europe in the early 21st Century. An over-reliance on oil, a commodity to be in increasingly short supply and ever-increasing cost, as well as stricter noise and environmental legislation, is diverting attention from the traditional internal combustion engine, to alternative ways of powering passenger vehicles that would be both cleaner and economically more interesting for all stakeholders.

Various technologies can partially or fully address these challenges. Plug-in hybrids, electric and fuel cell vehicles all offer different benefits. But the fully electric vehicle is the only technology already available on the market that provides a long-term solution to policymakers and consumers. Nationally generated electricity used to power these vehicles reduces the need for costly oil imports and, what's more, the electric vehicle significantly reduces noise and traffic pollution in cities. Nevertheless, zero-emission mobility needs a coordinated public private approach to become more than just a niche market.

For this to happen, key issues need to be addressed, including the provision of demand incentives and an adequate charging infrastructure. Nissan recognised the importance of effective public private collaboration to bring about these changes. Since 2007, Nissan has been working in complete partnership with national and regional governments, cities, utility companies, ICT and charging infrastructure suppliers to enable the mass deployment of zero-emission vehicles. To date, over 40 Memoranda of Understanding have been signed with partners across Europe and more than 100 worldwide.

Consumers must be able to charge their vehicles across Europe regardless of the vehicle's brand or its country of origin. Though the large majority of vehicles are expected to be charged at home (through a specific wall box) and at off-peak hours in order to benefit from cheaper electricity, a charging point network (both normal and quick-charging) in cities is important to remove range anxiety and the risk of running out of power while on the road. Amsterdam,1 Barcelona 2and London3 are examples of major cities that have set up such a charging network thanks to good public private collaboration. The development of home charging packages by car manufacturers in collaboration with electrical supply companies is also enabling customers to carry out the charging of their vehicles in complete safety and within the comfort of their own homes.

Equally important is the need for public authorities at local, regional and national levels to send the right signals to their citizens. Demand for clean vehicles needs to be stimulated by the usage of targeted incentives, which are dependent on the country's vehicle and mobility taxation structures. Yet experience is already showing that a €5,000 incentive towards the purchase of the car is an efficient push factor for early customers.

Furthermore, providing information to citizens about the benefits and limitations of electric vehicles is also essential to guarantee a successful and sustainable adoption of zero-emission mobility.

The close cooperation and commitment of European public authorities to work with industrial stakeholders has been essential to trigger one of the most important overhauls in the automotive sector. Zero-emission mobility is now a reality in Europe, but the remaining challenge is how to progressively make electric cars an important part of the landscape, and to guarantee the achievement of the ambitious environmental targets for 2020 and 2050.