WHY IT TOOK US SO LONG TO THINK ABOUT SUSTAINABLE MOBILITY!

FANTEC Automobili

Automotive Industry is going through a paradigm shift. Exactly 2.4 decades ago EV1 was introduced by General Motors. Since then, automotive industry was stagnant in EV space till the Tesla Model S entry first-ever mass-produced sedan came into existence in 2012. Fast forward to it, it is believed that present automotive industry will give at least 100+ models in the BEV (Battery Electric Vehicle) passenger segment by 2025. First things first, an electric car is a vehicle that is powered solely by electricity, meaning it doesn’t rely on gasoline or diesel fuel. Instead, it uses a rechargeable battery to power an electric motor, which in turn spins the wheels and propels the car forward. WHY IT TOOK US SO LONG TO THINK ABOUT SUSTAINABLE MOBILITY!

INDUSTRY STATISTICS

In Africa, founding a competitive, large scale African EV manufacturer would be a critical step in bringing EV adoption to Africa. Most importantly, this would give agency to African people and prevent further reliance on international imports. For example, Taiwan became involved in the semi-conductor industry in its nascent stages in 1974, when it was not significantly richer than many African countries. Today Taiwan produces 60% of the world’s semi-conductors and 90% of the advanced chips. The industry employs more than 100 000 people. An African EV industry could attempt to accomplish a similar feat. Importation tariffs on vehicles in Africa can be extremely high; in South Africa, the effective duty rates reaches 34%. By leveraging the African Continental Free Trade Area (ACFTA) to avoid this, and limiting transportation costs by manufacturing in-country, vehicle prices could be brought down significantly. According to a recent study by McKinsey and Company, the global electric vehicle market is expected to grow by 25% per year through 2030. Additionally, the International Energy Agency predicts that there will be 125 million electric cars on the road by 2030. These statistics highlight the growing popularity of electric cars, and the potential benefits of converting your own car to electric. So why not join the electric car revolution today?

Why BEV? (Battery Electric Vehicles)

There are many challenges in starting a business around Electric Vehicles. The total cost of Ownership, shortage of Charging Infrastructure and lack of consumer awareness are just a few reasons which influence EV adoption. Incentives can attract EV fleet owners. It’s like an egg chicken problem. People want to see the infrastructure being built, but on the other end OEM (Original Equipment Manufacturer) wants sales of EVs to rise first. The reason automotive companies are leaving research in ICE (Internal Combustion Engine) is that they are less efficient and climate change is on the rise. Most of the energy is lost in heat. Whereas BEV (Battery Electric vehicle) is very efficient at nearly 98%. But for a country with a population of 60+ Million (South Africa), having BEV as the only solution for mobility is not sustainable in the long run. FCEV (Fuel Cell Electric vehicle) would be a more preferred choice in the coming years, but for now, it is BEV. EV Technology was expensive a decade ago same is the case with FCEV (Fuel Cell Electric vehicle) or Hydrogen-Powered Vehicles right now. EV is still a luxury in South Africa. A PHEV (Plug-in Hybrid Electric Vehicle) would be a safe option, but it will slow down our progress in the shift from ICE to sustainable mobility.

CHARGING INFRASTRUCTURE

The most significant aspect of electric vehicle ecosystem is the charging infrastructure where customers expect convenience and ease of use. Charging infrastructure has a significant effect on the adoption of EVs. Research indicates that to make EVs more attractive to consumers, charging opportunities should be made ubiquitous, fast and inexpensive. However, in a world (e.g. in South Africa), with budget. Constrains, trade-offs must be made between these goals. According to Bolt Earth, there are currently over 350 publicly accessible charging stations in South Africa. Major investments from automakers like Audi have expanded the charging network, with a focus on facilitating long distance travel. One of the main concerns of the electric vehicle users is range anxiety. Everyone must have assurance that they can arrive at their destination without running out of battery to complete their journey. Thus it is crucial to have a vast network of charging stations that are accessible frequently to address range anxiety as EVs typically have a limited range compared to traditional gas powered vehicles. The availability of a network of charging stations along common travel routes and gathering areas such as malls and food outlets can aid EV drivers to recharge their vehicles easily. The majority of converted EVs will either be charged at home over night or at work during the day. Fantec intend to partner with readily available food outlets and or malls to install solar powered charging stations to the convenience of the EV populace. The availability of charging infrastructure will play a major decision in the adoption EVs especially in urban areas where there’s a high number of people with cars. With the expansion of charging infrastructure, Fantec will now consider charging speed of charging stations. No one wants to wait for hours on a road trip only to recharge. The charging speed will not be as fast as filling up a gas powered car, but at least it should be close. Fast charging capabilities in todays electric vehicles are of uttermost importance for the widespread use of electric vehicles.

Why BEV? (Battery Electric Vehicles)

There are many challenges in starting a business around Electric Vehicles. The total cost of Ownership, shortage of Charging Infrastructure and lack of consumer awareness are just a few reasons which influence EV adoption. Incentives can attract EV fleet owners. It’s like an egg chicken problem. People want to see the infrastructure being built, but on the other end OEM (Original Equipment Manufacturer) wants sales of EVs to rise first. The reason automotive companies are leaving research in ICE (Internal Combustion Engine) is that they are less efficient and climate change is on the rise. Most of the energy is lost in heat. Whereas BEV (Battery Electric vehicle) is very efficient at nearly 98%. But for a country with a population of 60+ Million (South Africa), having BEV as the only solution for mobility is not sustainable in the long run. FCEV (Fuel Cell Electric vehicle) would be a more preferred choice in the coming years, but for now, it is BEV. EV Technology was expensive a decade ago same is the case with FCEV (Fuel Cell Electric vehicle) or Hydrogen-Powered Vehicles right now. EV is still a luxury in South Africa. A PHEV (Plug-in Hybrid Electric Vehicle) would be a safe option, but it will slow down our progress in the shift from ICE to sustainable mobility.

ECONOMICS

Traditional OEMs have a stronghold on the automotive market, due largely to high costs, supply chain (parts availability), and of course brand recognition. South Africa should directly support EV adoption by offering subsidies and reducing taxes. However, this may not be as realistic for a developing nation. South Africa may be able to work around this if it funds EV incentives by leveraging the EV value chain to boost the country’s economy. The availability of rich manganese resources, existing battery industry make it an optimal destination for Lithium ion battery assembly and manufacturing. South Africa should also draw inspiration from countries like the US and Germany which have successfully attracted investment in local processing. If South Africa steps into a role in global Lithium ion manufacturing, its economy and employment rates would improve creating positive production demand cycle. This will further catapult industry development. Public transportation, for example Gautrain, also holds potential.

ECONOMICS

Traditional OEMs have a stronghold on the automotive market, due largely to high costs, supply chain (parts availability), and of course brand recognition. South Africa should directly support EV adoption by offering subsidies and reducing taxes. However, this may not be as realistic for a developing nation. South Africa may be able to work around this if it funds EV incentives by leveraging the EV value chain to boost the country’s economy. The availability of rich manganese resources, existing battery industry make it an optimal destination for Lithium ion battery assembly and manufacturing. South Africa should also draw inspiration from countries like the US and Germany which have successfully attracted investment in local processing. If South Africa steps into a role in global Lithium ion manufacturing, its economy and employment rates would improve creating positive production demand cycle. This will further catapult industry development. Public transportation, for example Gautrain, also holds potential. It is to be noted that lower TCO (Total Cost of Ownership) alone itself may not help in mass adoption of EVs, but it will definitely add value as South Africa is a cost-effective market. In South African context, it will be mandatory for Fantec to build a bi-directional charging vehicle as when the sale will increase parallelly energy demand is going to rise exponentially with adoption of EVs. Fast implementation of V2X (Vehicle to Anything) in South African market can give a yearly return of almost R20 Million that is if the services are effective to consumers. Thus, it is to be noted that buying an EV at upfront can be a load on saving, but in a long run it can benefit a lot. As they cost less in maintenance and resale value is also high, as the vehicle overall life is high compared to ICE.

FLEET OPERATIONS

Several organizations (including delivery companies) welcomed this move to switch to green or sustainable mobility from polluting vehicles. Climate change being the biggest reason behind this adaptation. It is important to realize at this point of time that any business which is motivated by only making profits without taking into consideration sustainability, will doom in the long run. “Cranking of the motor definitely opened many opportunities a century ago”. But efficient use of AI and Machine learning today has paved new ways to do business and use of technology to make products and lives better.

FLEET OPERATIONS

Several organizations (including delivery companies) welcomed this move to switch to green or sustainable mobility from polluting vehicles. Climate change being the biggest reason behind this adaptation. It is important to realize at this point of time that any business which is motivated by only making profits without taking into consideration sustainability, will doom in the long run. “Cranking of the motor definitely opened many opportunities a century ago”. But efficient use of AI and Machine learning today has paved new ways to do business and use of technology to make products and lives better.Fantec will target specified sectors, such as daily 9-5 work-force as they need fast and reliable transits. Shared mobility is going to be like icing on the cake as it would propel people of the same company/school or college to travel together while going on their shift. safety is in the hands of both the company as well as the customer. Big companies can opt for subscription-based model of services for their employees as travel is going to boom as we roll out the plan in many more provinces for many more years to come. Thus, hygiene and well-maintained vehicles will be our top priority so that passenger look for our services in other cities as well.

ADVANCED BUSINESS

The business around EVs is very complex in terms of profits. Therefore, for every business to survive, it must have multiple sources of income. The proper utilization of solar panels while vehicle is charging at the station will create extra revenue for charging stations. Especially during summers, the electricity generation will be very high. Thus, those people who love to travel will enjoy beverages and food while their vehicles are being charged, creating a healthy bi-directional business model with profits for both parties. For implementing V2X Technology, the cost of on-board charger will be preferred over a DC charger at home/office, which can create a hole in a technology hurdle. As Commercial Charging Stations’ charging standard currently doesn’t offer V2G (Vehicle to Grid) services consequently this technology is a distant dream, but a dream with a lot of business models around it. Fleet Companies are capable of Load Balancing and preventing grid from overloaded. “1 in 10 cars sold will be shared by 2030.” This makes V1G & V2G a solution for grid as ultimately the “VEHICLES ARE BIG BATTERIES ON WHEEL”. Furthermore, BLOCKCHAIN Technology will get mature enough over time adding more opportunities to the business all around the globe.

LOOKING BACK

Consistency is the key to success. Fantec is not just a company who wants to change 100 ICE vehicles into 100 EVs. It also wants to set an example for the whole world so that they can look upon and learn hence avoiding the mistakes from the past. With heavy investments comes a high amount of risk, Fantec will fulfil its mission of completing 100 ICE vehicles to 100 EVs with strategic partnership and effective use of technology. It will further expand by spreading across different cities, provinces and eventually beyond the borders.

OBEY FANUEL MATARE