Slump in sales of electric vehicles

Government’s 2030 EV targets look doubtful

Letters to the Editor. Illustration: Paul Scott

Sir, – The slump in electric vehicle (EV) sales in the first quarter of the year follows a softening in demand at the end of 2023 (“Switch to electric cars hits speed bump with further decline in sales”, Business, April 10th).

This pattern has been replicated in Europe and the US. Adoption of new technologies tends to follow a well-established pattern.

There is an initial surge in demand due to early adopters followed by a lag period before there is mass-market take-up.

The key challenge for developers and promoters of any new technology is to minimise this lag period.

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There are three separate issues contributing to the lag period in mass-market adoption of EVs in Ireland.

First is the cost. Many motorists simply cannot afford the higher prices that EVs are sold at.

Chinese EV manufacturers are rolling out more affordable models and this is challenging established manufacturers to match these prices.

These lower prices will give a considerable boost to EV uptake, but there are indications that the EU is not happy with what it sees as state-subsidised EV manufacturing in China. As a consequence the benefits of these lower-priced EVs may take time to materialise.

Second, the resale value of EVs is perceived to be much lower than petrol or diesel cars. As car and battery technology continues to develop, there is less demand for second-hand EVs that are seen as having older technology, leading to poorer resale prices.

The perception that batteries may have to be replaced, at considerable cost, soon after buying a second-hand EV, is a related issue.

Manufacturers and suppliers need to do much more to highlight the long and guaranteed lifetime of EV batteries to reassure motorists who see this is a possible issue.

Third, there is still a problem with charging infrastructure. A significant proportion of early adopters were those with off-street parking who could install home charging points.

This allows for charging at night, which is both cheaper and more convenient than using the public charging network.

Public charging infrastructure is not widespread or reliable enough for EV owners that do not have the luxury of off-street parking to install a home charger.

The Zero Emission Vehicles Ireland (ZEVI) office set up by Minister for Transport Eamon Ryan is involved in developing infrastructure schemes to support publicly accessible charging points in both urban and rural areas.

One of the key schemes is the Residential Neighbourhood Charging Scheme (announced by Mr Ryan in the Dáil in July last year), aiming to provide charging for residents without off-street parking. This scheme is designed to mimic home charging by incentivising off-peak charging in a location convenient to the resident’s home.

However, there is little detail so far on how this scheme will work or when it will be in place.

Both the Government and the car industry have a big job to do to address these issues so as to minimise the lag period before mass market adoption of EVs.

Otherwise the Government’s 2030 EV targets, already extremely challenging, will be impossible to meet. – Yours, etc,

BRIAN KELLEHER,

Ballinteer,

Dublin 16.