Oct 14, 2016

    By 2030, 67% of cars in S'pore could be electric


    ELECTRIC vehicles could account for two-thirds of all cars on the road by 2030 in wealthy cities, such as London and Singapore, due to stricter emissions regulation, falling technology costs and more consumer interest, research showed on Tuesday.

    Electric vehicles (EVs) are becoming far more common.

    To help lower harmful greenhouse gas emissions, governments are trying to encourage their uptake through subsidies and tax breaks and introducing low-emission zones.

    Technology costs are also falling rapidly. The cost of a lithium-ion battery pack fell 65 per cent last year to around $350 per kilowatt hour, from $1,000/kwh in 2010.

    It is expected to fall below $100/kwh over the next decade, according to a report by consultancy McKinsey & Co and Bloomberg New Energy Finance (BNEF).

    "In densely populated, high-income cities like London and Singapore... electric vehicles could represent as much as 60 per cent of all vehicles on the road by 2030, the result of low-emission zones, consumer interest and favourable economics," the report said.

    "The automotive sector faces a future that could be fundamentally different from its past and may need to consider moving from using a pure product-ownership model towards providing a range of transportation services."

    Gasoline retailers should also be considering further monetisation of their current assets and how to get more value from electric charging, the retail market and fleet services.

    At a BNEF Future of Energy Summit in London on Tuesday, BP's chief economist Spencer Dale said: "Electric vehicles could take off any time," as shifts in social preferences cannot be modelled.