Saudi Arabia opportunities and challenges of promoting EVs

Electric vehicles once were just in the textbooks and in the theory compared to other alternatives. But today electric vehicles are something which people are receiving the technology which much excitement. It has become a popular and fast-growing sector in the whole automotive segment. Let us see opportunities and challenges of promoting EVs in Saudi Arabia. 

According to a study the University of Michigan’s Transportation Research Institute found that EVs cost less than half to petrol-powered cars. There are many electric vehicles that can travel up to 400 kilometres on a single charge.

Opportunities and challenges of promoting EVs

Opportunities 

There are many drivers who are considering to switch to electric vehicles. The global adoption of EVs has accelerated remarkably in recent years. According to McKinsey, EV sales grew by around 60% worldwide between 2014 and 2018, to hit 2.1 million vehicles.

The oil and gas companies are also entering into the EV sector, for example, BP has noticed estimated that EV sales would reach 350 million by 2040, which would be equivalent to around 15% of all cars globally. The EV market will rapidly grow following the decision by the Saudi Standards, Metrology and Quality Organization to allow the imports of commercial EVs and charging stations.

The main reason for the Saudi government to focus on electric vehicles is they can reduce environmental pollution. The other reason can be said the usage of the gasoline potential to reduce environmental pollution.

EV Market Segmentation-Reasons, Needs & Challenges

It is beneficial to the environment, reduce pollution and creates new industries.

The need for electric charging stations, traditional gas stations will play a greater role in setting up the charging infrastructure.

The power companies will also be benefited that it can sell a new segment with that the employment opportunities are created in the maintenance, production and services area. The adoption of electric vehicles will speed up next-generation technology such as 5G telecommunications and Edge Computing.

The electric vehicles sector is not only greener but also a high-tech than the alternative which will develop economic growth.

Challenges

To adopt electric vehicles hugely, the first challenge is the charging infrastructure and secondly the cost of electric vehicles.

The electricity load factors. Both the Kingdom’s Central and Southern regions have insufficient capacity. EVs will put extra pressure on the electricity grid.

The range and charging anxiety is one of the challenges that is slowing down EVs growth. 

Needs

Electric Vehicles Needs, Reasons & Challenges in India

Partnerships, collaboration and coordination between the government, energy utilities, real estate developers and technology providers such as Schneider Electric. This will help to transform the EV driving experience by creating a nationwide charging infrastructure.

Research by two researchers at the King Abdullah Petroleum Studies and Research Center, Amro Elshurafa and Nawaz Peerbocus, has highlighted the need for renewables to be built and deployed as part of a wider strategy to promote the EV industry.

Renewable energy projects will amplify the environmental and economic benefits of using EVs. This replaces the dependency on gasoline and to reduce carbon emissions. Their research states that if 100,000 combustion vehicles were replaced by the same number of EVs, carbon emissions would decrease, on average, by around 0.35%, or 266×103 tons.

If all the vehicles in Saudi Arabia were to be replaced with EVs, the emissions would reduce by half, by 35 million tons.

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