Steering the mobility industry towards a sustainable and inclusive future.

The 54th Annual Meeting of the World Economic Forum this week in Davos marked a key moment for the mobility industry, aligning it firmly with global climate objectives and sustainable development goals. The event brought together over 3000 leaders from various sectors to discuss how to create a more resilient, innovative, sustainable and inclusive future. Participants made significant progress on climate action and on the energy transition.

Key highlights

1. Advancing energy efficiency in mobilityThe forum stressed the critical role of energy efficiency in shaping a sustainable future for mobility. Discussions highlighted the need to enhance fuel efficiency and optimise the entire mobility ecosystem, emphasising the benefits such as reduced operational costs and strengthened energy security.
2. Promoting innovation and technological integrationInnovation in mobility was a major focus, with clean energy vehicles, intelligent infrastructure, and the leverage of AI and data analytics being identified as transformative forces. The meeting also recognised the importance of supporting ecopreneurs and start-ups, building an ecosystem for rapid use of innovative solutions.
3. Ensuring equitable transitions in mobilityThe discussions underlined the importance of equitable transitions in mobility, ensuring that the shift towards greener transport solutions is inclusive and does not disproportionately impact certain demographic groups. The interconnectedness of the global mobility industry and the universal nature of climate impacts were highlighted, emphasising the need for developed nations to assist in the mobility transition of developing countries.

Davos 2024 set a new precedent for mobility. The convergence of minds this week was not just a testament to global collaboration but also a step forward in shaping a resilient and equitable future for the mobility industry.

Urban mobility enters a new era as e-bikes and scooters eclipse EVs in the sustainability race.

In a surprising turn in the urban transport revolution, electric vehicles (EVs), once hailed as the future of city mobility, are now under intense scrutiny. Concerns over their high upfront costs and less-than-expected reductions in carbon emissions are reshaping the narrative around sustainable urban transit. Emerging as the new frontrunners, e-bikes, e-mopeds, and e-scooters are gaining traction for their affordability, efficiency, and minimal environmental impact, challenging the once unchallenged position of EVs in the urban landscape. Industry experts are pointing out that the real hurdle to mass EV adoption lies not in the charging infrastructure, as previously thought, but in the vehicles' prohibitive costs. This shift in perspective is prompting city planners and policymakers to rethink strategies for urban transportation, potentially marking a pivotal moment in how cities address mobility in an environmentally conscious era.

Hertz's EV dream hits roadblocks.

Hertz 's ambitious venture into electric vehicle (EV) integration has recently faced challenges, highlighting the complex relationship between consumer interest in EVs and the practicalities of their adoption. The company's initial plan to incorporate 100,000 Tesla s, endorsed by high-profile figures, stumbled due to unforeseen issues like higher maintenance costs and a demand that fell short of projections, prompting the sale of a significant portion of its EV fleet. A critical obstacle was the lack of customer familiarity with EV technology. Despite Hertz's efforts to bridge this gap through digital resources and dedicated personnel, the effectiveness of these educational programs varied greatly. This situation highlights the broader challenge of ensuring effective customer education and support, especially when introducing innovative technologies like EVs.

China puts brakes on its EV boom amid trade tensions and concerns of overproduction.

China plans to curb the rapid expansion of its electric vehicle (EV) sector amid escalating trade tensions and criticism from the West over its aggressive industrial and trade policies. Xin Guobin, the Vice-Minister of Industry and Information Technology, acknowledged "insufficient" global demand and pledged decisive actions against the haphazard development of new EV projects and disorderly competition within the sector. This move aligns with growing international scrutiny, notably the EU's anti-dumping probe into Chinese EVs and reciprocal investigations by Beijing into European exports like French cognac. Despite these challenges, China's dominance in the global car market, particularly in EVs, remains strong, but concerns are rising about potential market oversaturation and the onset of a destructive price war.

BYD eyes acquisition of lithium giant in a strategic move to secure EV battery supplies.

BYD is actively exploring the acquisition of Sigma Lithium , a lithium producer in Brazil, to secure essential raw materials for its EV batteries. Sigma Lithium, valued at $2.9 billion and known for its lithium extraction from a Minas Gerais mine, is in discussions with BYD for a potential supply agreement, joint venture, or full acquisition. This move is part of BYD's broader strategy to establish a comprehensive supply chain and expand its global footprint, amidst growing international concerns over China's dominance in critical clean technology sectors. Sigma Lithium, facing a decrease in its share value due to a drop in lithium prices, is considering options including a sale or additional listings, making it a target for BYD's expansion plans.

Germany's auto giants, Bosch and ZF, cut jobs to navigate the rough transition to EVs.

Germany's car suppliers, including industry giants Bosch and ZF Group , are implementing significant job cuts to navigate the costly transition to electric vehicles (EVs) amidst challenges like inflation, rising raw material costs, and energy expenses. Bosch plans to lay off up to 1,200 employees by 2026, primarily in Germany, citing economic pressures. Meanwhile, ZF Friedrichshafen, grappling with the high debt from recent acquisitions and the need to streamline operations for EV production, faces potential job cuts of up to 12,000 in a worst-case scenario, leading to protests and tense negotiations with labour representatives. This wave of restructuring highlights the complex and financially strenuous shift within the automotive industry towards sustainable transportation.

Ola Electric makes a bold leap towards an IPO in India

Bhavish Aggarwal , co-founder of OLA Cabs and Ola Electric , is driving the IPO of Ola Electric, aiming to raise significant capital for expansion and debt clearance. The move positions Ola Electric as India's first publicly-listed EV company, offering a unique investment opportunity in the country's budding EV market, predominantly driven by two-wheelers. Despite facing challenges such as reduced government subsidies, increasing competition, and market scepticism towards start-ups, Aggarwal remains steadfast. He emphasises Ola Electric's growth and impact, reflecting his commitment to revolutionising India's mobility sector, albeit amidst concerns over the company's financial health and operational hurdles like customer service issues and safety concerns surrounding their e-scooters.

Northvolt secures a record green financing to fuel Europe's battery revolution.

Northvolt , a leading Swedish battery manufacturer, secured a record $5bn in green loan financing, marking Europe's largest to date and bolstering its status as the most-funded start-up. The funds are earmarked for expanding its inaugural gigafactory, Northvolt Ett, and establishing an adjacent recycling facility, Revolt Ett, a pioneering move outside Asia. Despite production challenges and significant losses, Northvolt's strategic initiatives, including future gigafactory plans, emphasise its commitment to sustainable and circular business practices. The substantial financial backing, coupled with a strong order book and environmental accolades, positions Northvolt as a key player in Europe's transition to renewable energy, though it navigates the complexities of rapid expansion and market readiness for potential listing.

The UK's EV landscape charges ahead despite ongoing debates on costs and infrastructure.

Debates in the UK regarding electric vehicles (EVs) often highlight concerns about costs, environmental impact, battery life, combustibility, and insufficient charging points. However, these apprehensions are generally viewed as overstated. With around 54,000 public charging points and an additional 680,000 domestic and workplace chargers, the UK is moderately positioned in terms of EV-to-charger ratios among major economies. Efforts to expand the infrastructure are accelerating, with ambitious targets and substantial private sector investment, notably from telecom and energy companies like BT Group and Shell Recharge Solutions , aiming to increase the number of chargers. While the EV market is expanding and infrastructure is improving, the primary obstacle to broader EV adoption remains the high cost of the vehicles themselves, not the charging infrastructure.