South Africa can do more to create market access and deliver on an operating environment which makes for good business, says TREVOR HILL – Head of Audi South Africa.
Competition in the premium automotive market is fierce but there is an elephant in the room. The demand we create for alternative mobility technologies (be it fully electric or hybrid) brings with it a very real infrastructure gap. Not addressing this today, will unfortunately prevent any meaningful ability for the local automotive sector to competitively participate in global trends. Doing this right would mean that we can deliver on local customer demand while still operate globally as a competitive automotive investment destination.
There is a firm reality; staying ahead of the pack means constantly innovating current technologies that, to a large degree, progresses the automotive segment as a whole. The downstream benefit of product innovation is clear, but it cannot be the job of the automotive industry alone. In the premium segment where the desire to drive ahead of the curve is expected, the introduction of new technologies around electrification and artificial intelligence creates real opportunity.
What the South African automotive segment does not need is potential. What it does need is a practical and inclusive plan that supports the growth needed – and more importantly enables both education and adoption for a new world of mobility. To overcome the chicken and egg conundrum we suggest five key focus areas:
1) We need increased investment in building an infrastructure footprint that actually supports alternative mobility solutions: The automotive industry, in partnership with government and other industry partners, must fuel the development and implementation of charging stations around the country.
2) We need a deliberate product road map matched to our infrastructure reality: Electrification won’t happen overnight, so we need to build a road map that accommodates hybrid vehicles and that can accommodate any future shifts to fully electric vehicles as and when new technology is phased in.
3) We need a policy environment that makes good sense and enables the product and infrastructure needs: Currently import duties on electric vehicles are high. Electric vehicles get charged a duty of around 25%, while conventional vehicle imports get charged 18%. Additionally, an ad valorem tax, which is usually charged on luxury items, is also applied to electric vehicles. So the tax on electric vehicle imports stands at about 42% in total. Government needs to look at this policy and reduce import taxes to make the future of mobility less expensive.
4) We need to increase the size of the pie. A clear and consistent growth plan creates a more stable business environment and more importantly, stabilizes the currency fluctuation impact on the Rand: Currently, the rand is the strongest it has been in two years. This is attributed to improvements in overall confidence because of increased political stability. However, what is concerning is the longevity of this stability and the resulting impact on the business environment.
5) We need to make sure that we bring our customers and Dealer partners on the journey with us: Education of customers and Dealer partners is key. If a consumer doesn’t understand what an electric vehicle is, they won’t buy it, even if they have the means. However, if they are educated about the positive impact such vehicles have on the environment, issues of versatility, power output and the technology behind it; then they are more likely to purchase the vehicle. We appreciate that any investment in alternative mobility solutions must be geared towards the end users of these solutions. What is important to understand is that consumers buy electric vehicles for different reasons. For some, it’s a lifestyle choice, wanting to drive green, clean mobility. While other consumers buy electric vehicles to make a statement. Given the environmental benefits, the latter group sees the technology representing cutting edge innovation and they want to be at forefront of this. Customers also need the assurance and the necessary education to dispel any belief that electric vehicles lose the credibility and lack the quality of existing internal combustion engines. Also, a key credibility factor for a more future forward mobility offering is the pace of infrastructure investment that our Dealer partners would need to embark on in order to undeniably accelerate the adoption of alternative mobility. As a direct importer, we need to invest time and effort to ensure that our Dealer partners are willing and able to move their businesses in this direction.
So the road map is clear. Electric mobility means merging the demands of sustainability, everyday usability and performance. This implies integrating current technologies to advance what are often still seen as concept vehicles to cater for consumers in the premium market. It does also mean that parallel investments in infrastructure are needed, especially if we are to cater for the anticipated leapfrog in product line-ups.
Globally, Audi has made significant investments in driving progress towards alternative mobility solutions. This has seen investments in both technology and human capital to make advances in areas such as e-fuel, battery life, range, speed, general performance and aesthetic design.
With this in mind, from 2025 all Audi models will have an electrified drive. We will be launching more than 20 electric cars and plug-in hybrids– spread across all segments and concepts. Over the long-term, Audi plans to set the trend for the premium market, aiming to leverage and combine all of its technologies to reduce the emissions figures and develop sustainable, intelligent electro-mobility concepts.
Driving progress around innovation is a key aspect of our own DNA. Audi has an impressive track record for integrating benchmark technology into our vehicles. However, before complete electrified vehicle fleets are built, we need to ensure that we get a buy-in from government to invest in electric vehicles by showing the economic, environmental and social upliftment that these vehicles will bring to South Africa.
Development is as dynamic as the automotive sector. Once we show the need to introduce electric vehicles into the premium market for those who can afford it, we can focus on developing other areas – recycling batteries; developing battery options with superior charging performance; investigating renewable energy sources such as wind and solar, just to name a few. The future is exciting and it’s more than evident that electric vehicles will benefit South Africans at large.
Volvo to use blockchain to trace battery cobalt
Volvo Cars will become the first carmaker to implement global traceability of cobalt used in its batteries by applying blockchain technology. The announcement follows the reveal last month of the company’s first fully electric car, the XC40 Recharge.
Traceability of raw materials used in the production of lithium-ion batteries, such as cobalt, is one of the main sustainability challenges faced by carmakers. Volvo says its committed to full traceability, ensuring that customers can drive electrified Volvos knowing the material for the batteries has been sourced responsibly.
“It is a mineral that is essential to the production of the lithium-ion batteries that power electric cars,” says Greg Maruszewski, Managing Director of Volvo Cars South Africa. “But, sadly, it has long been suspected that some of the cobalt comes from mines that don’t use ethical mining practices. Now, thanks to blockchain traceability, we will know that the cobalt has been sourced responsibly. We are the first and only vehicle manufacturer that can make this statement. Accordingly, South African motorists who buy a Volvo in our XC90 T8 range can do so with pride – with the guaranteed knowledge that only ethical mining practices have taken place in the cobalt supply chain.”
Blockchain technology, which establishes a transparent and reliable shared data network, significantly boosts transparency of the raw material supply chain as the information about the material’s origin cannot be changed undetected.
Volvo Cars has now reached an agreement with its two global battery suppliers, CATL of China and LG Chem of South Korea, and leading global blockchain technology firms to implement traceability of cobalt starting this year.
Technology firms Circulor and Oracle operate the blockchain technology across CATL’s supply chain following a successful pilot earlier this summer, while the Responsible Sourcing Blockchain Network (RSBN), together with responsible sourcing specialists RCS Global and IBM, is rolling out the technology in LG Chem’s supply chain.
“We have always been committed to an ethical supply chain for our raw materials,” says Martina Buchhauser, head of procurement at Volvo Cars. “With blockchain technology we can take the next step towards ensuring full traceability of our supply chain and minimising any related risks, in close collaboration with our suppliers.”
A blockchain is a digital ledger containing a list of records linked to each other via cryptography. Within supply chains, the technology creates records of transactions, which cannot be changed while also enforcing a common set of rules for what data can be recorded. This allows participants to verify and audit transactions independently.
In this particular case, data in the blockchain include the cobalt’s origin, attributes such as weight and size, the chain of custody and information establishing that participants’ behavior is consistent with OECD supply chain guidelines. This approach helps create trust between participants along a supply chain.
Volvo Cars last month launched the XC40 Recharge, the first of an upcoming family of fully electric cars under the Recharge banner. By 2025, it expects half of its global sales to consist of fully electric cars, with the rest hybrids.
Last month, Volvo Cars also launched an ambitious climate plan, which includes a radical reduction of carbon emissions by 40% per vehicle by 2025, as well as a continued commitment to ethical business across its entire operations and supply chain.
CATL and LG Chem are renowned battery manufacturers, both with long and successful track records supplying lithium-ion batteries to the global automotive industry. They fulfil Volvo Cars’ strict sourcing guidelines in terms of technology leadership, responsible supply chains, reduction of carbon emissions and competitive cost models.
The agreements between Volvo Cars, CATL and LG Chem cover the supply of batteries over the coming decade for next-generation Volvo and Polestar models, including the XC40 Recharge.
Jaguar tech delivers wake-up call for drivers
From long working hours to daily school runs and the potentially stressful commute, Jaguar understands life for many is busier than ever. We’re so busy that 1 in 8 UK drivers admit to having fallen asleep at the wheel* – and this causes up to 25% of fatal accidents**.
As part of a wider vision to enrich and improve the lives of its drivers and passengers, Jaguar has developed a piece of technology, Driver Condition Monitor, which alerts the driver if it detects the tell-tale signs of drowsiness. The system takes inputs from thousands of data points, some of which are measured every thousandth of a second, including the Electronic Power Assisted Steering system, pedal inputs and general driving behaviour. Complex algorithms analyse all this to accurately determine whether a driver is becoming fatigued.
Fitted as standard on E-PACE and across the Jaguar range, Driver Condition Monitor detects if the driver is starting to feel drowsy and when required, provides an early warning to take a break. E-PACE’s instrument cluster displays a coffee-cup icon and sounds an alert when a prompt is needed.
Edmund King, Director of the AA Charitable Trust, said: “The statistics around drowsy drivers are shocking, even more so when you realise it is an under-reported issue. Any measure that helps reduce the risk of tired drivers, such as Jaguar’s Driver Condition Monitor, is to be welcomed. The only real cure for tiredness is to rest – if drivers feel tired, or are alerted to possible tiredness by their car, they should pull over at the next safe place, drink a caffeinated drink and take a short nap.”
David Willey, Assisted and Automated Driving Attributes Senior Manager, Jaguar, said: “At Jaguar, we continuously review the latest advances in vehicle safety and develop innovative technologies to improve the driving experience, making it safer and more enjoyable. Driver Condition Monitor, along with a range of Advanced Driver Assistance Systems (ADAS) are offered as standard across the Jaguar range.”
The Jaguar E-PACE is also fitted with an array of other advanced driver assistance systems to help keep the driver and occupants safe. Standard features on all Jaguar models include Automated Emergency Braking, Lane Keep Assist, Cruise Control with Speed Limiter, front and rear parking aid and a rear facing camera.
The Jaguar E-PACE’s unique combination of sporty looks, dynamic driving and innovative safety features mean it’s fun to drive and safe, too. The SUV you’ll never tire of, is priced from R684,400 in South Africa and can be configured at www.jaguar.co.za.
* AA Charitable Trust research. AA-Populus 11-17 September 2018. Online poll of 20,561 drivers
** Parliamentary Advisory Council for Transport Safety (PACTS) Fitness to Drive report 2016