Hesitation, uncertainty, scepticism, real concerns, and misinformation are all presently contributing to a decline in electric vehicle (EV) purchases. In Ireland, EV sales have significantly declined, down more than 20 per cent this year, in comparison to 2023. This statistic is alarming, considering the previous consistent upward trend in EV sales, and our urgent necessity to lower CO2 emissions. Although automobiles are not the sole contributors to CO2 emissions, reducing their numbers is a good start.
As the initial phase of enthusiastic EV adoption ends – driven by individuals interested in the technology and willing to modify their travel habits around the current EV constraints – we are now seeing a marked resistance from the majority.
Addressing this issue is a tall order, considering the challenge of educating an entire nation. However, as a significant starting point, BMW Ireland brought together a group of experts led by Pat Kenny to deliberate on the future of electric vehicles and dispel the common misunderstanding accompanying discussions about electric cars.
A concern frequently raised about EVs is the potential failure and the high replacement cost of the battery – the most critical and priciest part of the vehicle – relatively early into the vehicle’s lifespan. This fear has been amplified by misleading media headlines, especially from UK outlets openly skeptical of EVs, alluding to €20,000 battery replacements.
Though these situations do occur, they are exceptions rather than the rule. “We were very early to the market with the original i3,” stated Graham Biggs, Corporate and Product Communications manager for BMW in the UK and Ireland, implying that BMW’s experience and knowledge places it in a advantageous position to assert this claim.
The early adoption of electric vehicles (EVs) by Nissan Leaf and ourselves has provided us with a distinctive perspective on battery longevity. Surprisingly, several of our decade-old i3s models are still operational and fetching decent prices on the second and third-hand markets. Initially, we estimated that these batteries might need replacement after six to eight years, however, that’s not been the case. We’ve inspected numerous ten-year-old models which still retain between 75 and 85 per cent of their original battery capacity, which is impressively beyond our expectations.
Moreover, this performance significantly surpasses typical manufacturer warranties that generally protect against battery capacity falls to about 70 per cent within eight years. Biggs believes there’s a misconstrued understanding about battery longevity, mostly because we tend to compare it with the lifespan of mobile phone batteries, which usually dwindles to 80 per cent of their original capacity in about two years. Most people then assume this will be the case with EV batteries too, but in reality, it’s far from the truth.
Even though the chemistry involved is somewhat similar, the technology is incredibly dissimilar, particularly in charging methods. We’ve also implemented a modular battery design, so if an issue arises, the entire battery isn’t required to be replaced; instead, only the malfunctioning module is swapped out, minimising the cost considerably. When I queried our UK warranty team about the number of whole battery packs that needed replacing, the response I received was none whatsoever. This highlights the extraordinary reliability we’re witnessing with our batteries. In fact, when minor issues have occurred, only the individual battery cells had to be replaced.
Infrastructure continues to pose as an obstacle even as almost everything suggests that 90% of all electric vehicle (EV) charging happens at home. This doesn’t console people who reside in terrace houses or flats, but it suggests that for the majority of individuals, public charging networks will act more as a psychological comfort than an absolute solution. Acknowledging that even psychological comforts can play a vital role, Brian Cooke, the director general of the Society of the Irish Motor Industry (SIMI), mentioned during a conference that residential houses in Ireland are suitably adapted for home charging. However, he stressed on the need to improve the charging infrastructure. As an EV driver himself, and acknowledging that many attendees at the conference have experienced or own EVs, he shared that most of them have had at least one unpleasant encounter with the charging network, despite being willing to embrace EVs.
Brian Merrigan of BMW Finance expressed concern about EV residual values, stating that the most beneficial way for buyers would be to opt for a Purchase Contract Plan (PCP) finance plan with assurance of the residual value. This can safeguard the buyers from any sudden market value changes, even though it might leave less equity for their next purchase if the second-hand value were to plummet.
He further informed that their used EVs are priced similarly to their internal combustion vehicles, approximately 47 to 48 per cent of the initial price after three years of usage. He asserted that their business has observed a majority of their customers maintaining their financial standing, whether negative or positive. He added, it’s essential to mention that the market is still not matured enough, but they are already setting residual values for upcoming models for two years from now without reducing their estimation of their value.
However, it appears we are being required to accept much of this on faith. We are expected to trust that electric vehicles will live up to their marketed range and performance. We are encouraged to believe commitments regarding the enhancement of charging networks will be honoured, despite past evidence to the contrary. We are entreated to take claims about battery durability, reliability and residual values at face value. In essence, we are being solicited to place enormous trust in both car retailers and politicians, two groups not conventionally renowned for their trustworthiness. How can we, the public, be expected to place so much trust?
According to Biggs, “We are clearly in a period of transition,” adding that “This change can be somewhat unsettling. Recent events may have indeed shaken public confidence. But our presence here today is intended to reassure and guide people through this transition.
The way we respond to climate change and manage our scarce resources will shape our society’s future,” said Oliver Zipse, chairman of the board of management for the BMW Group.
“Ownership might look different, but the benefits in terms of cost savings and environmental protection are real,” Biggs added. “It’s crucial to remember, electric cars aren’t going away, they are undeniably on their way. Legislation will ensure this continues. So, the question we need to ask ourselves in this room is how can we support people during this transition? We are certainly doing our utmost to assist people through this shift.”
Helen Westby, BMW Ireland’s managing director, perhaps brought up a crucial point: “I believe it’s vital that we move forward with electric. Oliver Zipse, managing director of BMW Group, shared a thought-provoking insight: ‘Our response to climate change and how we manage our scarce resources will shape the future of our society.’ So, we all know why we need to shift to electric. It’s up to us to rectify the balance and critically examine the reality surrounding the electric vehicle scenario from all perspectives.”
“We’re not present to dispute anyone’s assertions. Our goal is simply to ensure that balance is taken care of. I’d like to emphasise, for now, that electric vehicles might not cater to everybody’s needs. Yet, as we look to the future than we are expanding the coverage of our vehicles and our Ireland’s infrastructure is enhanced, I believe it will become the preferred propulsion system.”