Geotab CEO’s Perspective on EV Adoption – Tackling the Bump in the Road

This blog was provided by our partners at GeoTab.

As an early electric vehicle (EV) adopter, I acquired my first EV in2011, and since then have witnessed firsthand the remarkable evolution of the industry. In previous years we have seen rapid growth in EV adoption, however, that growth is slowing. This raises questions about what is happening in the marketplace, and the impact on ambitious carbon targets.  As an entrepreneur, the tension associated with disruption, adoption, and technology innovation is certainly familiar, and I know from experience that when market situations shift, it requires remedial action. 

Market Realities

Transportation is the largest source of greenhouse gas (GHG) emissions in the U.S., responsible for 28%  of the total. In 2022 alone, light-duty and heavy-duty trucks accounted for 80% of these emissions.

While there is still limited growth, it’s helpful to understand market realities impacting both consumer and commercial EV adoption. 

First, there has been a resurgence in demand for hybrids which address concerns for range anxiety, charging infrastructure, initial cost and for fuel efficiency. Toyota, for example, is doing very well with their hybrids and Ford has switched plans to focus more on future hybrid models versus full EVs.

Secondly we need better charging infrastructure. Current charging infrastructure for commercial EVs cannot support large-scale deployment,especially for long-haul vehicles, where range limitations are a significant issue. Another significant challenge is the availability of all the types of commercial EV vehicles.

The higher initial purchase price of EVs compared to ICE vehicles, driven largely by the price of batteries, continues to be a constraint.For the most part, commercial EVs remain at the higher end of the market, due to higher upfront costs, and evolving technology that is limiting scalability, making them less suited at this time for electrification.

Strategies for Accelerating Adoption:

Collaboration: A more collaborative approach and knowledge sharing among EV vehicle manufacturers, charging infrastructure providers, fleet operators, and governments would support the development of better, integrated solutions. Companies like PepsiCo and Schneider scaling up heavy trucks at depots are fostering a supportive ecosystem.

Education: Consumers, fleet operators and decision-makers need to stay updated on new technology. Demonstration projects, pilot programs, and case studies can showcase real-world results, building confidence in others about the potential of scaling electric fleets. Programs like Run on Less – Electric DEPOT are helping, by demonstrating positive signs for heavy duty vehicle electrification, like PepsiCo’s Tesla Semi, covering 1600 miles in under 48 hours.

Government Support: This includes building public charging stations, incentives for private charging setups, and ensuring infrastructure keeps pace with EV adoption. Financial incentives should make EVs more affordable. Effective regulations and polices should be developed in collaboration with businesses.

Data Sharing: Sharing data on vehicle performance, charging behavior, maintenance needs, and operational costs can foster a greater understanding of how EV benefits and challenges, empowering decision making and continuous improvement.

Standardization: Creating industry standards for EV components, charging infrastructure and data communication ensures interoperability, reducing risk and cost while encouraging investment.

So where do we go from here?

EV adoption is going to take a bit longer than anticipated, especially in the commercial sector.  It’s time to focus on the mid to longer term play – a more gradual integration of electrification, where the many stakeholders in this space contribute to building the necessary scale and infrastructure to overcome current limitations.  It will likely require some rethinking of ambitious 2030 EV only regulations, along with improved efforts around knowledge sharing, technology development, and education.

Achieving sustainability goals is complicated work, which is why we need to do more together, sharing in the risk and the rewards.