Electric cars could be an option in the face of rising gasoline prices, but how much do they cost? Who can access them?

The constant rise in the price of super gasoline in Ecuador has forced the owners of alternative combustion cars to rethink to assume the economic impact. While most have begun to use eco or extra gasoline, there are others who are analyzing the possibility of acquiring electric cars.

However, affirming that the majority of the vehicle fleet will migrate to electric cars in the short or medium term is, for now, a utopia in the country, according to experts consulted. Their prices and the lack of charging stations are two major obstacles. Jorge Zavala has had a car for five years. He is one of the drivers who forcibly migrated from supermarket to eco. He affirms that he has been analyzing the possibility of acquiring a high-end electric car for a long time, but when he consulted the price of a car with a range of 400 kilometers, “all the desire” went away: “They are above $50,000 ″.

Jorge’s feeling is the reality of the “common citizen” who has a car in the country, says Diego Bustamante, research professor, expert in industry 4.0 and cyber-physical systems at SEK International University. For the expert, the only ones who have the purchasing power to buy electric cars in the short term will be those who currently have to pay the price of the supermarket and who make up the wealthy class of the country.

He affirms that the issue of the rise in gasoline and the acquisition of electric cars should be analyzed from three axes: commercial, infrastructure and ecological.

“If we look at the commercial side, an average citizen would not have the ability to upgrade his vehicle to electric technology because these types of cars are expensive and it is not for work but for commuting. We cannot say that in the short or medium term, due to the increase in fuel prices, we are going to change the entire vehicle fleet. We can talk about this in the long term and see if there is the possibility of a future change.”, he indicates.

On the issue of infrastructure, he adds, it is necessary to implement an entire system of interprovincial charging stations in the country so that the user has this type of 100% functional vehicle.

Pollution reduction is the third factor. This topic is driven, for the most part, by the new generations who show great concern for the environment. However, this, according to Bustamante, is also something that raises the obstacles in the country: “Those who want to bet on this technology are barely 15 years old and people who are older would not choose these vehicles because they are unaware of the technology”.

Since 2015, when this type of car entered the national market, until July 2021, 655 electric cars have been marketed, according to the Association of Automotive Companies of Ecuador (Aeade). Since 2019 there has been a growth in sales. In 2020, 105 units were sold and in the first seven months of 2021 there were 108.

The purchase of electric cars does not take off in Ecuador despite its benefits, these are the causes

Andrés Cordero, marketing manager of Nissan Ecuador, affirms that the rise in fuel prices will have an impact on sales of electric cars. He agrees with Bustamante that the country’s upper class is the one that, in the short term, will choose electric cars.

“In our experience, premium vehicle customers also feel the impact of fuel prices, however, it is an audience that likes innovation and technology and has shown a lot of interest in electric vehicles. This segment is definitely more willing to acquire new technologies that are friendly to the environment.”, he indicates.

For the executive, although the lack of charging stations is a “challenge”, he affirms that the electric vehicles that are being imported have focused on the country, that is, on urban routes where charging is not a problem. Today real autonomies of more than 290 kilometers are already managed: “In the case of Nissan with its LEAF electric vehicle, the customer is installed a wall charger at home that allows him to charge without depending on an electric station”.

The total charge of the LEAF has an approximate cost of $3.50 to travel 290 kilometers, which represents a lower value compared to a gallon of super gasoline that in certain sectors of the country exceeds $4.

Currently, a 100% electric vehicle does not pay duty, VAT, ICE in the country and this, for the company Hyundai Ecuador, is a first big step to promote sustainable mobility. It also considers as a fundamental challenge the progressive development of a fast charging infrastructure network within cities and also on highways, in such a way that current and potential users have the predictability that they will be able to circulate without the risk that at some point when the battery runs out.

In addition, the charging stations would allow marketers to make a greater supply of electric vehicles available to Ecuadorians. However, for Hyundai, the increase in the price of super gasoline is not a fundamental trigger for users to decide on an electric vehicle.

“The immediate effect of this increase translates mainly into a migration of super gasoline towards extra. Information to users about the benefits of electric mobility will generate greater interest in this segment“, Says the company to EL UNIVERSO.

Another benefit of these vehicles is the low maintenance costs and the fact that they represent significant savings for their owners. In addition, its technology is more efficient and reliable. This would offset the initial investment.

The first 100% electric truck in Ecuador will transport sugarcane

One of the issues that cause suspicion when choosing an electric vehicle is the duration of its batteries and the cost of replacing them. However, according to Cordero, in the last ten years batteries have dropped in price by a tenth and technology continues to improve, which will make their costs more accessible. This would also lower the price of the car..

Bustamante and Cordero agree that Ecuador should have promoted sustainable mobility with greater force long before the current rise in fuel prices, since this would have allowed it to better face the issue of gasoline.

However, the country must bet on this technology, which is the automotive future and a great option to help the planet. What’s more, It is necessary to develop a real sustainable transition plan that takes into account the geographical incorporation of a fast charging infrastructure network, the projection of the supply and demand of these vehicles, he adds Hyundai Ecuador. (I)