Who benefits from e-mobility?

Electromobility as a whole is constantly developing and will soon be indispensable. For this reason, the optimisation and design of a charging infrastructure is extremely relevant and, in addition to the influence on vehicle owners, also has an impact on various industries. Who can particularly benefit from e-mobility and what advantages the changeover or adaptation to electric-powered vehicles brings with it is explained below.

The fact that electric cars and their power supply from renewable energies bring many advantages, for example the reduction of noise levels or a reduction in CO₂-emissions, can be proven by various surveys and studies. But which specific actors are also affected by the transport transition? Which industries can use the switch to electromobility for themselves and their respective customers? What new business models are emerging and what are the respective advantages of a changeover or the addition of charging points?

Automotive

Automotive refers to all activities related to the automotive industry, which can range from supplies to services. This sector in particular is affected by the development regarding electric mobility and must constantly adapt to market changes and requirements. For example, the current price of electricity is lower than the price of fossil fuels, which is why e-vehicles are cheaper to run than internal combustion vehicles. In addition, there are various government subsidies that offer several tax and price advantages. Customers also consider the quiet driving style or the elimination of local emissions of harmful CO₂-emissions to be positive. This is only a small selection of advantages for vehicle buyers and owners. In order to adapt to the needs, e-cars should be increasingly included in the portfolio. This can be justified by the significant growth in the number of e-vehicles over the last few years. While in 2018 there were 98,280 e-vehicles on German roads, just two years later there were more than twice as many (2020: 238,792). In January 2021, a stock of 588,944 e-cars could be recorded. This development not only shows the change in customer interests, but also the new demand for charging stations and the expansion of an optimal charging infrastructure. This offers not only a competitive advantage, but also an expansion of the customer group. In addition, the charging process can be demonstrated to interested parties directly at the company's own charging station, thus removing any doubts the customer may have. The charging station could also be used for the company's own e-vehicles, which are available for test drives. Another advantage of including e-vehicles in the repertoire is the customer approach of potential new customers. E-vehicle owners could charge at the car dealer's charging station and in the meantime inform themselves about the dealer's current range and new models. These advantages for the automotive industry clearly speak in favour of a conversion or product expansion.

Petrol stations

Another sector that can profit from electromobility is petrol stations. There are currently around 14,100 petrol stations in Germany, which ensure the supply of petrol, diesel and alternative fuels. However, the number of electric vehicle owners is increasing rapidly, which is why petrol station owners should also think about building charging stations in order to act in a future-oriented manner and be able to use the new opportunity for themselves. There is also the opportunity to expand or retain the customer base with the help of the installation of fast charging stations and to offer an additional sales opportunity. Charging electric vehicles takes about 10-20 minutes (at fast charging stations with about 150 kW) longer than refuelling vehicles, but this fact also has advantages. Customers stay longer at the filling station and have the opportunity to purchase something in shops and to take advantage of the culinary offerings on site. In addition, the attractiveness of the location is increased, so that the synergy of both business areas can be profitable. In addition, the development of a charging infrastructure is subsidised by the Federal Ministry of Transport, which is why the investment in the expansion is additionally attractive for petrol station operators. It can be concluded from this that the conversion or addition of a charging infrastructure at petrol stations is not only profitable, but will also represent a decisive source of income in the future.

Real estate hub

Since electromobility will soon be unthinkable without it, the demand for more charging options is also steadily increasing. Above all, there is growing interest among property owners and operators in developing a charging infrastructure, as this brings many advantages. Owners and operators not only secure themselves at an early stage with a charging station, but also increase the attractiveness of the property for potential buyers and tenants. The implementation offers an additional benefit for tenants and external parties, so that monetary aspects of property owners should also be included in the decision. In addition, the property can be certified as sustainable, which sends a strong signal for sustainability. The creation of added value and thus also the increase in reputation has a positive effect not only for owners but also for tenants, so that both can benefit equally from the integration of new charging stations. However, one of the most important points to consider is the legal requirement. In March 2020, the government passed a bill for the development of a building-integrated charging and line infrastructure for electromobility, which implements European requirements.

The following regulations were laid down for residential buildings:

•  § 6 Residential buildings to be constructed with more than ten parking spaces
  Anyone constructing a residential building with more than ten parking spaces within the building or more than ten parking spaces adjacent to the building must ensure that each parking space is equipped with the wiring infrastructure for electromobility.
  
• § 8 Major renovation of existing residential buildings with more than ten parking spaces
  (1) If a residential building that has more than ten parking spaces within the building undergoes a major renovation that includes the car park or the electrical infrastructure of the building, the owner shall ensure that each parking space is equipped with the wiring infrastructure for electromobility.
  (2) If a residential building that has more than ten parking spaces adjacent to the building undergoes a major renovation that includes the parking space or the electrical infrastructure of the parking space, the owner shall ensure that each parking space is equipped with the wiring infrastructure for electric mobility.

Municipalities

For municipalities, there is an extensive range of application possibilities, which are supported with numerous funding opportunities. The reason behind this is to convert municipal transport to electrically powered vehicles in the future and to set an example. The basis for this is the Electromobility Act (EmoG - 05.06.2015), which enables measures to give priority to the participation of electrically powered vehicles in road traffic. Examples of this are dedicated, free parking spaces, permission to use special lanes, and the lifting of drive-through bans established due to pollution and noise. This privilege for electric vehicles creates a privilege for e-vehicle owners and incentivises the use of e-vehicles. Another possible use of charging systems is for the electrification of car sharing vehicles. In this way, not only does the municipality promote environmentally friendly mobility, but it also takes away potential new customers' fears and concerns about e-vehicles. In addition, there are further advantages for municipalities to expand the charging infrastructure and promote more electric vehicles on municipal roads. Electric vehicles do not emit any exhaust gases on site and therefore drive emission-free, which improves air quality due to reduced pollutant emissions. If the electric vehicles are additionally charged with electricity from renewable energies, the climate balance can be improved even further. The reduction of particulate matter, noise and pollution increases the quality of life of the inhabitants and the reputation of the locality. A further step could be the use of self-generated renewable electricity for the charging points, which could be obtained from photovoltaic systems, for example. Thus, the Electromobility Act and various subsidies for municipalities provide a solid basis so that the conversion or expansion of a charging infrastructure represents a profitable solution for municipalities and their residents.

Fleets

The electrification of their own fleet can be extremely interesting for taxi and bus companies, fleet managers, fleet operators (e.g. Sixt) and many others, and can prove to be a profitable solution. Since these companies or business units have high availability as well as high utilisation and have to react efficiently to various demands, an effective fleet solution is necessary. In addition, the fleet size and type is different and depends on the business process, which means that there are different requirements for an individual as well as optimal charging solution. Some fleet vehicles, such as taxis and buses, need to be charged while waiting. Others, on the other hand, need to charge on the road if longer journeys have to be conquered. For these fleets, fast charging points are needed so that the turnover of this fleet of vehicles is not affected. If e-vehicles in the fleet can be charged overnight and the charging time is not relevant for the daily business process, a wallbox or AC charging pole is the more sensible solution. Depending on the business model, an optimal charging solution must be found, whereby electrification brings many advantages regardless of the charging system. Electrified fleets not only represent fuel and cost savings for operators, but can be a viable alternative with GHG generation. In addition, reputation and credibility regarding the topic of sustainability increase. Due to the image improvement, customers can be better addressed, so that when choosing between an internal combustion vehicle provider and an electric vehicle provider, e.g. when choosing between different taxis, the e-vehicles perform better. In addition to the sustainability factor, a certain comfort can be offered to the customer, for example through modern and quiet vehicles with fast acceleration, which improves competitiveness.

Retail/restaurants

For non-residential buildings, which include supermarkets, furniture stores, DIY stores, restaurants and other businesses with a parking area, there are legal requirements which can be found in the draft law on the development of a building-integrated charging and wiring infrastructure for electromobility.

• § 7 Non-residential buildings to be constructed with more than ten parking spaces
  Anyone constructing a non-residential building with more than ten parking spaces within the building or more than ten parking spaces adjacent to the building must ensure that 1. at least every fifth parking space is equipped with the line infrastructure for electromobility and 2. at least one charging point is also installed.
  
  
• § 9 Major renovation of existing non-residential buildings with more than ten parking spaces
  (1) If a non-residential building that has more than ten parking spaces within the building undergoes a major renovation that includes the parking space or the electrical infrastructure of the building, the owner shall ensure that
  1. at least every fifth parking space is equipped with the wiring infrastructure for electric mobility; and
  2. at least one additional charging point is installed.
  (2) If a non-residential building that has more than ten parking spaces adjacent to the building undergoes a major renovation that includes the car park or the car park's electrical infrastructure, the owner shall ensure that
  1. at least every fifth parking space is equipped with the wiring infrastructure for electric mobility; and
  2. at least one additional charging point is installed.
  
  
• § 10 Existing non-residential buildings with more than 20 parking spaces
  For each non-residential building that has more than 20 parking spaces within the building or more than 20 parking spaces adjacent to the building, the owner must ensure that a charging point is installed after 1 January 2025.

Although this is a legal requirement, it is important to consider the many key benefits that the development of charging infrastructure brings to retail and hospitality businesses. Probably the most well-known advantage of e-mobility is the environmental aspect and the savings in CO_2-emissions due to the use of an electrically powered vehicle compared to conventional drive types. With the introduction of charging infrastructures in retail or gastronomy, the respective companies would thus consciously commit themselves to climate protection. In addition, the reputation of these businesses can be enhanced, as this form of mobility is supported and its introduction is promoted, e.g. by providing charging points for customers. By building charging stations, the company positions itself in terms of their values. This positioning can prove to be profitable, as customers who also value an innovative and sustainable future will prefer these companies. This image improvement thus represents a competitive advantage, which can only be used and will subsequently prove profitable if the company acts faster than its competitors. Another advantage of the introduction of electromobility for retail and catering businesses is the numerous and attractive funding opportunities. This financial aspect can be seen as extremely advantageous, as many other benefits can be exploited with only a few monetary resources. The provision of charging stations leads to e-vehicle owners preferring this location and the customer loyalty turns into customer loyalty after a while. The time a customer spends in the shop or restaurant also increases if the car can be charged in the meantime. Another option is the monetary or time-related benefit for the charging station customer. These and many other models offer the charging station provider an opportunity to stand out from the competition and also create a further incentive for new customers. These points not only create added value for the company, but also for customers and employees. Above all, however, companies can stand out in comparison to other competitors as long as the market has not yet been exhausted in terms of charging infrastructure.

Company

Charging the electric vehicle proves to be particularly useful at the locations when parking at these parking spaces independently of the need for charging, for example at the workplace. Since the car is parked during working hours anyway, this time can also be used for charging. The fact that this is not only advantageous for the employees can be justified on the basis of the many advantages for the company. When choosing an employer, the provision of a charging facility is a potential incentive for new employees, allowing the company to stand out from other employers. In addition, commuting will become easier for employers in the future, as the EU Commission wants to reduce the annual CO₂-emissions of new vehicles to zero. As a result, internal combustion vehicles could be banned in cities by 2035. Another reason for providing a charging option at the workplace is the tax advantages. While petrol and diesel vouchers for employees have to be taxed, the cost of charging e-vehicles is tax-free. In addition, the electricity for e-vehicles is cheaper than petrol and diesel, which is why the travel costs for business trips are lower. These and many other advantages demonstrate why it makes sense and is profitable for companies to switch to electric vehicles and provide charging points.

Hotels

Currently, the provision of charging points is still an additional service for hotel guests. However, this will change in the course of the next few years, as the number of e-vehicle owners will steadily increase, so that a charging option is a prerequisite for many people looking for a hotel. Since many hotels do not yet offer this additional service, the attractiveness of their own accommodation is increased. In addition, a greater customer appeal can be achieved because the hotel appears on various booking portals and maps of public charging points, for example. However, an incentive is not only created for overnight guests, but also for other charging point users and guests of the hotel's own restaurant, conference rooms or wellness area. In addition to the economic factors, the image of the hotel can also be improved, as the installation of a charging point sends a signal for the environmentally friendly and future-oriented orientation of the hotel. This is one of the reasons why hotels benefit from the development of electric mobility and why the installation of charging points not only brings monetary but also image advantages.

With the help of these actors, it can be explained why the switch to electromobility is associated with many advantages in general, but also specifically for the aforementioned actors. If you are also considering the purchase of charging stations and the implementation of electromobility in your business, we will be happy to answer any questions you may have on the subject of e-mobility.