The number of economically active population, which is concentrated in cities, continues to grow in the world and also in Latvia. Although there are several benefits to the urbanization process, it also presents a number of challenges.
One of the challenges is to use cars and reduce the pollution they cause. At present, the governments of several European Union member states have already taken on an important role in leading the green course, planning or already including goals in the legislation towards the desired changes. Raivo Bāle, Head of Luminor Līzings, shares his vision of what the future of the automotive industry looks like and what Latvia should do to promote the use of electric cars.
New winds and requirements
In the fight to preserve the environment, EU governments have agreed on emission quotas and set standards and requirements for car manufacturers, failure to comply with which will result in fines, but environmentally friendly measures cannot be achieved by bans alone. Both countries and consumers need to act to this end. It has not yet been approved, but it is planned that a support mechanism for the purchase of electric vehicles will finally be introduced in Latvia as well. It envisages that support for the purchase of new electric cars could be available in the amount of 4,500 euros, while for used electric cars – 2,250 euros.
Most of the cars registered in Latvia run on either petrol or diesel engines, but last year the number of registered electric cars increased by 230% compared to the previous year, according to the data of the Auto Association. However, the electric car accounts for only about 2% of the total new car market, the trend is generally positive – the process of change has begun, the only question is – how fast will this transition be?
State aid for the purchase of environmentally friendly cars
The supply of environmentally friendly cars is growing rapidly in the car market, as evidenced by the growing choice of electric and hybrid car models, the cessation of production of internal combustion engines and even a ban on their use, for example in large cities. Switching to electric cars is not cheap and is already reflected in the prices of new cars, so it is important that countries become more aware of how to help citizens and businesses with various support mechanisms or subsidies to make them more accessible to consumers. While in other EU countries, including Lithuania and Estonia, countries have developed or are still working on a subsidy system to encourage the purchase of electric cars, in Latvia at present the only support is a few advantages for car owners and more friendly conditions for obtaining a loan or lease.
Electric car challenges
One of the main obstacles is still the small number of charging stations and their territorial coverage, which poses challenges when traveling on daily routes or on domestic journeys. Unless the charging station is located at the place of residence or at work, then due to the limited number, visiting public charging stations requires additional logistics planning. On the positive side, about 10-20 new public charging stations are opened in Latvia every year, provided by both individuals and companies. This gives confidence in tackling the challenge of electric vehicle infrastructure in the foreseeable future, if both public and private capital is invested.
Also, electric car owners should think about how and where to perform car maintenance before buying. Unless the electric car is serviced by an authorized dealer, it may be challenging for a regular car service to perform some maintenance and repair work due to a lack of knowledge and technical equipment.
The relationship between man and car is changing
Consumer habits are also changing, if so far people have bought one car more often, then this trend could change in the future. For example, buying an electric car to move around the city, but another car for longer trips or trips. Various transport services are also evolving in line with consumer expectations, with a growing willingness to pay for access rights rather than property rights, such as car and electric scooter rental. If a person does not want to incur expenses as a car owner, but still needs a vehicle, he can use car rental services, provided that they are flexible and do not cost too much.
Old fears and reality
There are also various myths and sometimes even fears associated with the transition to electric cars. The first electric cars, on the one hand, were ahead of their time, but on the other hand, they proved to be sensitive to the weather and often did not meet actual needs. But over the years, the electric car has evolved and become more competitive as well as more practical. For example, if in the past a car battery could lose up to 10% of its capacity in a year, today the best electric car models lose only 0.3%. Also, new electric car models from well-known car manufacturers are appearing in the vehicle market at relatively more affordable prices. Of course, when buying an electric car at a cheaper price, it is necessary to provide that the battery capacity provides a mileage of about 150 km. However, the fact that the dream of an electric car is available to an ever-widening population brings positive winds.
Luminor
Charged opinion
Apparently Luminor also lives in old fear. Latvia is clean well covered with fast charging stations. One could even argue that the situation outside Riga is in a very good condition, because every 30-50 km there is one fast charging station. The most pressing problem is in Riga and in the sleeping areas, where people would like to find an opportunity to charge the car at night.
As for the service visit, it should be mentioned that the running gear can be serviced by any garage. The only problems could arise if you have to start with software that is unlikely, or in an even less plausible scenario, to get to the batteries or charging system.
What a fantasy that now want to buy 2 cars instead of 1… The bank is already rubbing his hands, but if the household does not want another car, then it will not be the other. Not really! We bought EV and now we will buy another car, but with an internal combustion engine… ”
Where did the EV lose 10% of its battery capacity in a year? In that case, my Citroen C-Zero is currently with 10% remaining capacity… Could not refrain and not be intimidated?
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