Originally Posted On: ‘Don’t Get Left Behind In The Charge To The Future’ says Carnex Shirley Li
Carnex, Canada’s leading used-EV dealership platform, presented at the EqualOcean Online Webinar to help businesses chart a clear path on how to seize latent opportunities in the automotive industry with electrification, autonomous driving, and the transportation-as-a-service business model.
Disruptions and market changes have never been more volatile. Using the example of the once-dominant mobile giant Nokia, Shirley Li, Head of Investor Relations at Carnex, cautioned that no one is too big to fail.
“The first thing to understand is the rate at which this change will happen,” said Li. “When we look at the real rate that adoption happens, we see an ‘S-Curve.’ This is because technology enables technology, and as they converge, costs decrease and capabilities increase until we reach a cusp, at which point the new then quickly sweep out the old. If you look at what has happened throughout history, those S-Curves are becoming increasingly steeper, which means that timelines for businesses to learn and adjust to consumer preferences are only getting shorter and shorter.”
This S-shaped adoption rate has already begun to form; last year’s global EV sales penetration doubled from the previous year.
The reason for this growth stems from sheer necessity, said Li. It is no longer acceptable to sacrifice the environment to pursue greater economic gain. Global industries must come together to mitigate the risks of violent natural disasters caused by climate change.
Fortunately, new advancements in technology mean that it’s no longer a binary choice between saving the planet and turning a profit. Rather than wasting capital and time on “fixing” existing carbon-intensive industries, they should be replaced with newer and cleaner technologies.
With the transportation industry making up 12% of all greenhouse gas emissions alone, vehicle electrification spearheads the clean-tech revolution.
More than being economically and environmentally sound, EVs are also the best choice for consumers with their advanced features and performance.
There are four key factors driving the “S-curve” in EV adoption:
- Cheaper to drive: As it stands, electricity is ten times cheaper than gas.
- Cheaper to maintain: EVs have much fewer moving parts. Precise savings are hard to pin down, but look at the real-life example of New York City – in 2019 the city spent an average of five to six times less maintaining their electric fleet compared to their previous gas vehicles.
- They also last longer: With a lifetime range of over 800,000 km, drivers get 2.5 to 5 times more mileage in an EV. This is especially important for fleets where service lifespan and COO are critical.
- Greater consumer value: Lastly, at the core of why electrification is disrupting the industry, is that they simply generate greater consumer value. They were born out of a new age of technology, with a focus on software and connectivity.
Thirty-two countries have made a concerted effort to push along the shift by requiring all new passenger vehicles to be zero-emission by 2040.
Pushing along the shift are the 32 countries that have already mandated that all new passenger vehicles be zero-emission by 2040. Some countries, such as Canada, have set the deadline even earlier in 2035. To accelerate EV adoption, the Canadian government has established the Incentives for Zero-Emission Vehicles Program, through which EV buyers would receive a $2,500 to $5,000 credit towards their vehicle purchases. One Consumer Report study found that an EV’s lifetime savings far outweigh any price difference over its gas-powered counterparts, further enhancing its appeal for both personal use and fleets.
In parallel, countries have also ramped up the installation of supporting infrastructure for EVs. Vehicle manufacturers are also investing heavily in electric vehicle R&D. To drive the point home, Li emphasized that Honda will only be selling EVs and hybrids in Europe by next year. The increased EV investment and selection, combined with the rising gas prices as a deterrent, make EVs a sensible choice for both the economy and the environment.
Li added that along with EVs, the future of transportation will also be redefined by two other concepts: autonomous driving and transportation-as-a-service (TaaS).
Level 4 autonomous vehicles do not require human attention under most circumstances, therefore creating value for consumers by giving back precious commuting time, as well as for fleets and ride-hailing services due to the reduction in labor costs.
These accelerants will have profound impacts on the transportation industry as consumers continue to digest chronically high gas prices and increase mobility needs with the pandemic.
“The disruption that’s happening will present great social and economic opportunity, but the only thing worse than missing out on an opportunity, is being pushed out by its outcome,” Li concluded.
Carnex.ca is Canada’s first e-commerce platform for used Electric Vehicles, with the EV company’s headquarters located in Toronto, Ontario. Its core management team has specialized in the automotive industry for more than ten years – primarily in China, which is home to the world’s largest EV market.
Carnex’s monthly turnover currently exceeds more than C$1 million. It recognized that the potential EV market is enormous, as more and more customers seek high-quality, environment-friendly EV products and services. Therefore, the founders want to enable anyone to access the convenience and benefits of electric vehicles.
To that end, Carnex.ca is dedicated to providing customers with EV knowledge, as well as to meeting consumer needs with after-market service capabilities, such as EV test-drives; technical consultations, meanwhile, for its local customers in Canada, they also offer online car selection; online loans; online replacement; and door-to-door car delivery.
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