The Tribune

BY NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

A BAHAMIAN electric vehicle dealer says it expects to maintain annual sales growth of “at least 10 percent” even though the “flood” of low-priced gasoline-fuelled cars from China has “disrupted the market” and curbed industry “momentum”.

Pia Farmer, partner at Easy Car Sales, told Tribune Business that - while the influx of cut-priced Chinese autos began two years ago - she and other Bahamian electric vehicle dealers are still drawing strong customer interest as surging global oil prices back at the near-$100 per barrel level make gas and diesel-powered cars increasingly less economical.

“We are busy with people looking at that option,” she said of electric vehicles. “The thing about it is there are a lot of inexpensive Chinese gas cars on the market. People are being tempted to stay attached to the gas pump by very low prices.

“The importation of low-priced gas cars from China, not primarily known for their combustion engine innovation, is definitely a factor. It started almost two years ago and now we are being flooded by Chinese gas cars which no one is buying in China. But they are finding markets overseas to send them to. Not great for our environment and unproven for the long-term, but better than a third-hand inefficient bubbler I guess.

“Personally I do think it has disrupted the market, and maybe slowed electric vehicle momentum to some degree for those still unconvinced about electric mobility. But one out of every four new cars sold worldwide last year were fully electric so the momentum for electric vehicle adoption is unstoppable.”

Ms Farmer, in a recent interview with this newspaper, explained that China’s transition away from gasoline-fuelled vehicles meant any such models now in existence are being sold and exported to buyers in other countries. “They have to be sold somewhere, and the world is being flooded by inexpensive gas cars,” she said.

“That is having more impact because people are choosing to buy inexpensive gas cars. It’s having an impact, not so much on me and my company personally, but the country as a whole. It is affecting the adoption of electric vehicles that we are being flooded by inexpensive Chinese combustion engine vehicles which are not being sold in China, so they are coming here. The transition to inexpensive gas cars is better than third-hand gas cars.”

Ms Farmer, though, was quick to assert that Easy Car Sales’ are not being impacted by the cut-price Chinese vehicle influence. “Our sales are not being impacted in terms of that,” she added. “It’s something that we noted in the market. We are doing well, we are busy, and people are interested in electric vehicles and seeing the benefit….

“We consistently grow every year by at least 10 percent or more, so we continue to expect that growth as people transition more to electric vehicles and the Government transitions its fleet to electric. We expect there will be increased business from that and it’s going to be spread across different dealerships. We expect to continue that growth. The rest of the world, the rate of electric vehicle sales rose by 28 percent. It’s inevitable.”

Electric vehicles presently account for between 12-15 percent of all new auto sales in the Bahamian market, and this will have to jump three to four-fold to meet the Government’s targeted 50 percent market share by 2035. This commitment was made as part of The Bahamas’ third nationally determined contribution (NDC) setting out this country’s pledges on fighting global climate change to the United Nations (UN).

Ms Farmer, meanwhile, said the persistence of high and volatile oil prices, with Brent crude hovering just below $97 per barrel as this newspaper went to press, continues to aid the economic case for vehicle purchasers to switch from gas and diesel to electric. She asserted that it now costs the equivalent of “less than $2 per gallon”, based on Bahamas Power & Light (BPL) prices, for an electric vehicle to travel the same distance as a gasoline car with fuel between $6.50 to $7 per gallon.

“Certainly we see that people are considering electric vehicles more today than ever before because of high fuel prices,” Ms Farmer asserted. “World events are causing great strain on people’s already-stretched budgets and volatility of gas prices doesn’t seem to be going away any time soon.

“Those who are in the market for new vehicles are now considering electric vehicles more because the price of electricity is fixed versus gas prices changing every day. They are fearful they will not be able to afford to fill up their tanks. It’s stressful. Today it costs $2 or less in electricity at BPL prices. including surcharges, to go the same distance as a gallon of gas at $6.50 or $7 so savings are immediate and tangible.”

The Easy Car Sales chief added that electric vehicle adoption is also increasing on the Family Islands given that fuel prices there are much higher than Nassau. She also argued that service costs are lower with maintenance required once per year.

“For those who worry about electricity reliability, it’s not an issue because you only charge on average once a week, and generally we recommend you plug in when the battery is at about 25-30 percent of capacity, which means you still have about 70-plus miles of range left in the battery. People think you have to plug in daily; that’s a total myth,” Ms Farmer added.

“Today, for the first time, people are upgrading their electric vehicles so we have started a certified pre-owned electric vehicle division to accommodate buyers with a smaller budget and their warranties will be honoured fully…. Pre-owned electric vehicles sell off the lot as soon as we park them. But only buy a pre-owned electric vehicle from a dealer who can guarantee it has been properly maintained and will honour the full warranty. Otherwise, it’s risky not to have a factory warranty.”

Ms Farmer said construction is also ongoing at Easy Car Sales’ new Abundant Life Road headquarters. “Plans continue to progress there,” she added. “I imagine by next year our headquarters will be fully outfitted at Abundant Life Road. We want to modernise things as well, and we will be having solar production going in there with URCA’s approval and projects going there. We are growing and solidifying our presence at Abundant Life Road.”

The Bahamas has pledged that 80 percent, or four out of every five new vehicles sold by 2035, will either by fully electric or hybrid. The Government is targeting 30 percent market share for the latter.

Gasoline-powered autos will, though, not disappear overnight despite the Government’s climate change ambitions and will still be around in The Bahamas for decades. However, this nation’s third NDC states: “Decarbonisation of the transport sector has also been accelerated through the introduction of electric and hybrid vehicles, and opportunities for development of a public transportation system…..

“Decarbonisation of the transport sector represents another major area of emissions reduction. In line with the [third] NDC’s enhanced ambition, The Bahamas aims to achieve 50 percent of new vehicle sales as electric vehicles (EVs) and 30 percent as hybrid vehicles by 2035,” the Government’s latest NDC said.

“This target effectively means that only 20 percent of new vehicles sold in the country will be powered solely by fossil fuels after 2035. Significant progress has already been made toward this transition.

“In 2022, the Government of The Bahamas led by example by introducing 50 BYD electric vehicles ahead of COP 27, followed by an additional 185 electric vehicles integrated into the Government fleet. To further accelerate adoption, import duties on electric vehicles have been reduced to 10 percent and 25 percent, depending on vehicle value and type.”