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Plug-in Hybrid Electric Vehicles are becoming an increasingly popular choice for Kiwi motorists; Jaguar Land Rover CEO Steve Kenchington explores why.
Globally the demand for Electric Vehicles is on the rise with many manufacturers now committing to electric-only production by the end of the decade.
New Zealand is no exception when it comes to new vehicle sales trends with almost a third of kiwis purchasing either full EV, PHEV or Hybrid as their mode of transport this year to date.
Much of this has been driven by the government’s introduction of the Clean Car Standards, introduced in April this year where new vehicles under $80,000 can receive up to $8,625 in rebate. This can certainly make the switch to full electrification more attractive when you can use this rebate to subsidise the significantly higher price point than that of an internal combustion engine vehicle.
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Having said that, not all EVs or PHEVs and Hybrids qualify for the rebate, so why is there a consistent shift appearing in the switch from full combustion to battery-powered or assisted vehicles?
At Jaguar Land Rover we are seeing a mindset shift in purchase decisions with an extraordinary 760% growth in PHEV sales this financial year. This increase demonstrates to us that many Kiwis not only care about a sustainable future for generations to come but are also mindful of what best suits their lifestyle and circumstances.
A change to pure electric for many people is a step too far with some hesitance to make the leap from their current ICE vehicle, so instead, they opt for a PHEV as a stepping stone.
Data shows that on average 2,500 kilograms more emissions are released by an average ICE vehicle compared to that of an average PHEV. This, combined with increasing fuel prices, is influencing a change in consumer behaviour towards making an environmental change, without much compromise to lifestyle.
As technology continues to develop quickly in the EV space and manufacturers look for advantages over their competitors, the question remains, do you make the leap of faith now or transition into this technology over time?
For many, the considerations for their next purchase include the cost to change, whether will it fulfil the family requirements, the charging infrastructure available now and in the foreseeable future, and of course whether or not it is fit for its purposes such as long road trips or towing capabilities.
There are currently around 340 charging stations in New Zealand right now located approximately every 75kms apart on the state highways (better than many European countries). In comparison, there are approximately 1265 fuel stations with multiple pumps. Usage of EV chargers is doubling every year based on current sales volumes and to cope with that it is anticipated the charging network will double over the next three years too, which is encouraging news…but will that be sufficient?
In terms of PHEVs, I believe this is why many brands have seen such a strong shift. There is, for example, little compromise in power output and capability (in some cases more), the cost to purchase is less significant and yet the range is extended. To provide some evidence of this, a new Range Rover Velar P400 PHEV has increased power over the ICE engine equivalent, with an average economy level of 2.75L per 100 kms versus its ICE engine equivalent which has an economy level of about 10L per 100 kms.
Range anxiety remains the number one detractor today in consumers making the shift to EV – a fear that the vehicle has an insufficient electric charge to cover the journey at hand. In addition to that, time delays to charge for a longer drive and/or the lack of charging stations to cope with the growing sales of EVs are all considerations and concerns.
Is range anxiety justified today? Let’s firstly look at the average range of electric vehicles available on the market right now which can vary quite dramatically. As an example, the reported range of EVs is currently from around 200kms – 600kms with an average range of approximately 313kms. This may satisfy many people, however, in some cases, a heavily laden vehicle with air conditioning, roof boxes etc. may affect the range quite dramatically.
So, yes range anxiety is still very real however if you are well prepared and plan for this in your journey or you are fortunate enough to have a PHEV or ICE second vehicle available then you eliminate some or all of this inconvenience.
In addition to this, residential charging infrastructure also needs to be a consideration. With a move to create more high-density accommodation, pressure is coming on the authorities to develop the infrastructure to cope with the load and accessibility of appropriate charging units in residence and within the city.
While many PHEVs only have a relatively short battery range, this does allow for some people to get them to and from work on their daily commute in pure electric mode. Research shows that on average Kiwis drive just shy of 30kms a day with most driving no more than 210kms per week. Charging nightly or at work can allow for no tailpipe emissions versus an ICE vehicle. This would save the driver between $40-80 a week in fuel depending on your vehicle and driving style.
Being able to switch between EV mode for your city commute, to a combination of battery and ICE towing the trailer for a weekend away, and then ICE only when the battery requires charging provides increased flexibility. No matter where you’re heading, functionality and optional usage are very important while still providing a reduced carbon footprint overall.
Recently, for example, we set off with Sir John Kirwan on the Mitey tour around the country to raise $1,000,000 for his charity. Mitey is a charity that provides our young tamariki with the tools they need to cope with mental health as part of the school curriculum. In one of the support vehicles, the Range Rover Evoque PHEV, we travelled more than 2,000kms over eight days and only filled the vehicle with petrol twice. Yes, we charged the vehicle on occasion however it did not dominate or influence our trip and the economy and performance were uncompromised.
As mentioned earlier, technology is changing quickly. The All New Range Rover and Range Rover Sport PHEV will arrive in New Zealand in 2023 with a battery range of 113kms on a single charge, double that of many current PHEVs on the road. With that and a short charge time of approximately half an hour to 80% capacity on a 25Kw DC charger those advancements will only lead to more PHEV interest and sales in the short to medium term.
In closing, it is right to say that full electrification of the New Zealand fleet is imminent, and Kiwis have embraced this in volumes already. By 2035 we will see a stop to new diesel and petrol vehicles entering New Zealand and by 2050 there will be no ICE-powered engines on our roads.
While I am a strong advocate for this change the questions for me remain…is the infrastructure ready to cope with the quick pace of change we are seeing today, or will we see infrastructure and electricity issues as we place significant new load onto the grid?
I look forward to the day when we can confidently travel and explore what this country has to offer in a fully electric vehicle without inconvenience or anxiety however in the meantime, I think there remains a place for a combination of ICE and electric modes of transport.
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