CARS 2020 Working Group Clean Vehicles: Electromobility and alternative fuels 27 May 2013
About Leaseurope The voice of leasing and automotive rental in Europe It brings together 47 Member Associations In turn representing more than 2 000 finance leasing firms & more than 1 100 short term rental companies Leaseurope represents ~95% of the European leasing market Leaseurope members
Leaseurope s weight in the vehicle sector (2011) New business 5.6 million units 108 billion Penetration of new car sales: 31.9% New business 1.4 million units 44 billion Based on figures reported in the 2011 Annual Survey & Leaseurope estimates; includes figures from short term rental associations
LV EE SE DK SK UK CH SI FI BG NL FR CZ AT PT LU BE DE RO NO PL IT ES GR Leaseurope passenger cars as % of total car registrations (2011) 90% 80% 70% 60% 50% 40% 30% 31.9% 20% 10% 0% Leasing members Leasing & ST rental members
Role of leasing companies Supporting sustainable mobility Fleet renewal ((latest technical developments on the road) Reducing costs Uptake of clean vehicles Safety Tool for businesses Enabling access to vehicles Outsourcing risk New mobility concepts Enable consumer access to affordable vehicles Feeding the second hand market Environmental EU car label of new leased cars in NL* * Source: Dutch Leasing Association Annual report 2011, RDC, NL
Total Cost of Ownership (TCO) Professional fleet management Technology neutral approach Fleet data used to advise customers to chose the right vehicle in order to minimize fuel costs Drivers can chose vehicles within given band Depreciation mainly linked to expected remarketing values of vehicles Depreciation Tyres Insurance Fuel Taxes & Replacement incentives Maintenance vehicle (...) Vehicle Taxes Drivers
Financial incentives for Clean Vehicles Member States focus on purchase incentives rather than usage incentives Mismatch between incentives for drivers and companies Second hand market for clean vehicles with new power trains failing to materialise, leading to significantly weaker remarketing values Leasing industry instrumental in supplying second hand market with nearly new affordable vehicles
Reasons to buy an EV in Norway* Free access to bus lanes 25% 17% Exemption from 25% VAT on purchase Reduced yearly road tax 3% 20% Availability of public charging stations 14% 11% 10% Free municipal parking Free ferry ticket No charges on toll roads * Norwegian electric vehicle association, member survey August 2012
EV TCO differences Higher purchasing price, low usage costs 2 to 3 times lower Remarketing values Uncertainty regarding the battery No second hand market available Rapid technological development Tipping point for some vehicles beyond 10 years Relatively high infrastructure costs Fleet management, break even point Leaf/Megane* Consumer, break even point Leaf/Megane* * TNO final report on real world testing of Evs for Ministry of Transport, December 2012
Light Clean Commercial Vehicles Too much focus on passenger cars LCVs mainly diesel engines used in urban setting with frequent start/stop driving Vehicles are often depot based, thus lower EV charging infrastructure costs Few incentives available Limited offer of hybrid/ev solutions for LCVs To ensure viable second hand market, need for high degree of harmonization
Commercial vehicles, 2011 business trading spots Main sourcing markets: Germany France Benelux Italy Spain Main destination markets: Poland, Czech republic, Slovakia Russia, Belarus, Baltic states Ex-Yugoslavia Romania, Bulgaria, Greece France Germany
Recommendation Harmonization of standards Technology neutral approach Focus on usage incentives applied in non discriminatory fashion Increased attention to LCVs Stable regulatory environment Company car taxation policy in support of fleet renewal Consideration of impact of new measures on second hand market Need for a better way to compare performance of vehicles with new power trains
Thank you Richard Knubben Senior Adviser, Automotive Affairs Leaseurope T +32 2 778 05 68 r.knubben@leaseurope.org www.leaseurope.org Boulevard Louis Schmidt 87 B - 1040 Brussels Belgium Tel : +32 2 778 05 60 Fax : +32 2 778 05 78