As ZEV-UP advances the development of its frugal Battery Electric Vehicle (BEV) concept, tailored to meet user needs across diverse markets from established economies to emerging ones, a comprehensive understanding of operational environments and market dynamics is essential. To this end, Rhoé, in collaboration with the University of Leeds, ICOOR, Ford Otosan, the Lahore University of Management Sciences, and the University of Cape Town, has been looking at strategies for various specific markets to predict market growth and ensure the economic viability of the ZEV-UP vehicles.
Specific challenges in emerging economies
A specific focus of this research was placed on developing countries to understand their specificities. For instance, in Pakistan and South Africa, particular challenges due to weak energy grids and the high costs associated with infrastructure development limit the feasibility of widespread EV adoption. In South Africa, the adoption of Hybrid Electric Vehicles (HEVs) is primarily driven by the need to reduce fuel costs, while BEVs remain accessible only to higher-income groups. However, while luxury BEV sales are less dependent on disposable income, in the case of frugal BEVs, affordability remains a critical determinant of adoption.
Infrastructure: a cornerstone for EV adoption
The availability and accessibility of charging infrastructure heavily influence EV uptake. Cities like Oslo, with dense and accessible charging networks, serve as examples of how infrastructure supports higher EV adoption rates. By contrast, cities such as Thessaloniki and Leeds require improvements to accommodate the increased EV use. For medium metropolitan areas like Thessaloniki, the compact urban environment makes it particularly well-suited for mini frugal BEVs, where median trip distances align with the strengths of Light Electric Vehicles (LEVs).
The project partners developed an innovative tool, the Charging Infrastructure Index, to evaluate and optimise EV charging networks based on the needs of EV drivers and the areas for improvement. Using this tool, Rhoé conducted an in-depth assessment of the infrastructure readiness of the city of Thessaloniki and applied a mathematical model to optimise the allocation of charging stations across the municipality. The results can be explored on the Rhoé website here.
Tailoring mini frugal BEVs to diverse user needs
Another finding highlighted that while mini frugal BEVs in the L7e category may be less cost-effective than L3e vehicles for strictly urban commutes, they offer additional and greater utility, including increased space and protection from adverse weather conditions. These features make them a practical option for private users requiring versatile vehicles for daily tasks.
Economic considerations for fleets
Fleet operators can benefit from the long-term cost savings associated with mini frugal BEVs, thanks to lower operational costs compared to Internal Combustion Engine (ICE) vehicles. However, the financial advantage remains moderate, with uncertainties surrounding evolving technologies and infrastructure that may deter risk-averse investors. The decision to invest in BEVs or ICE vehicles often depends on market conditions and risk tolerance, underlining the importance of tailored approaches to different market segments.
Looking ahead
The insights gained from the market analysis, demand assessment, and financial sustainability will feed directly into the design of the ZEV-UP vehicles. The technological trends and market needs identified will guide the design team in developing a vehicle that is both competitive and aligned with current and future market demands, fostering the adoption of the ZEV-UP vehicles.
The economic models developed during this study will be further refined after the demonstration phase with a comprehensive financial assessment to evaluate and optimise their financial viability based on real-world data and evolving market conditions.
More details can be found in the ZEV-UP Deliverable 1.2, which will soon be accessible on our website. In addition, two scientific papers on the Charging Infrastructure Index methodology will be published in the coming months. Stay tuned for further updates!
