2023-11-02 11:25:24
Audi’s commitment to electrification is set and there is no turning back. In 2026, what will be the last combustion model will be presented and in 2033 the last fossil fuel car will leave its production lines, according to comments Jose Miguel Aparicio, general director of the brand in Spain for six years. A plan that has respect for the environment as its reason for being, as was clear in the talks promoted by the brand with the four rings at the Audi Summit held in Madrid.
—What is the Audi Summit?
—Audi is very aware of the responsibility and commitment required of companies in solving the major problems of society. To seek these answers, Audi Summit was created, which we want to be a speaker with which to spread ideas that can help change the world. I think that humanity is in a situation in which we need to greatly accelerate change and at Audi we are very committed to it.
—One of the changes that are coming is the transition towards electrification. Is it realistic to think that in 2035 there will be a completely electric vehicle fleet?
—No, the entire park, definitely not. But registrations from that year on will be electric in a very high percentage. The park is made up of automobiles of very diverse vintages that will take years to disappear from the carts. Manufacturers are offering electric cars, I think there are more than 100 models offered at this moment. It is true that in Spain an important issue remains to be resolved to get the public to take the step more decisively, which is the problem of charging infrastructure, especially for those users who do not have a garage with a charger. That is the key that will determine when we can reach 100% electric vehicle fleet.
—What is needed for the electric car to position itself as the definitive solution to mobility needs in Spain?
-Is very close. The new electric cars are offering sufficient range. At Audi we are going to launch models that can travel more than 700 kilometers, a distance that more than covers the needs for any trip. On the other hand, the charging infrastructure network is advancing, the bureaucracy needs to be simplified and the licenses that are pending to be granted must be cleared. So I think we are now at the moment to start accelerating.
—How long do you think it will take for the sale of electrified models in Spain to surpass combustion models?
—We as brands have to make consumers’ fears regarding electrification dissipate. To achieve this, access to aid must be simplified and convey that electrified models provide tangible benefits for the environment. I believe that the problem that worries us so much about the charging infrastructure will be solved in two years.
—Are electrified models leaving the middle and working classes out of access to mobility?
—In electric cars we are witnessing a significant drop in production costs and this was already something that was anticipated. But many factors are impacting the price. Some have had a greater impact even than the price of combustion models, such as the breakdown of supply chains, the microchip crisis, the increase in raw material or transportation costs, among others. It is true that today the average cost of producing an electric car is higher than that of a combustion car. However, we will reach a point where both are equal.
—What role can other technologies play in this transition?
—Audi will present its latest combustion model in 2026, but the life cycle of a model is eight years. We will stop manufacturing gasoline cars in 2033. But I have to say that this last model will be the most efficient of all the ones we have ever made. Regarding the use of other technologies in future models, I believe they are still in the experimental phase and it is early to make a bet in the short term as a real solution for consumers.
—Some European governments are considering stopping incentives for the purchase of electric vehicles.
—Aid from all public administrations must continue to be maintained over the next decade. The experience of countries in which electrification has advanced very quickly and is today the majority technology has had the definitive boost in incentives. That and the deployment of a good home charging network will make people take the step. That is why it is important that the incentives are maintained, but with more direct and easier access to aid.
—To what extent is the delay in the installation of charging infrastructure slowing down the implementation of the electric car?
—We are very late. A bigger, better network would encourage, without a doubt. Spain has the handicap of being a large country, geographically speaking, and there are many citizens who travel a good number of kilometers repeatedly a year. These are the ones who suffer the most from the lack of a tighter network of chargers. But there are other areas, such as archipelagos, where cars with smaller ranges do not have any problems despite not having all the charging infrastructure programmed. The moment citizens overcome the fear of the recharge network effect, the contagion will spread and everything will go faster.
—Does Audi’s clear commitment to electrification mean that it is giving up markets such as Asia, Africa or South America?
—Audi is on different continents contributing to the deployment of electrical infrastructure in countries. For example, we have high-power chargers in major locations across our dealer network in the United States. We are contributing with our projects to the transition in China and we are promoting South America and other places to also follow this path. Because at the bottom of all this is that we want to contribute to stopping the climate emergency. This forces us to make a systemic change and it has to occur in all markets. It is true that in those markets we also have to work hard to rejuvenate the parks. If you go to countries like Kenya you see that they are sinks for old used vehicles from the most developed world. Therefore, I believe that we also have to take care of that, because for the purposes of the climate emergency we are affected by both what is broadcast in Kenya and what is broadcast in Madrid.
—What does the Spanish market mean for Audi at a European and global level?
—It is the eighth market for Audi worldwide. But I believe that beyond the volume it represents, I would dare to say that for Audi the Spanish market is very relevant. As a team we have an important influence on product development and the decisions that are made. Suffice it to mention that we have two compatriots at the top, the vice president of human resources and Fermín Soneira as head of one of the main lines of business.
—Is the market in Spain slowing down?
—We are seeing how there is an environment that weakens demand. Especially the rise in interest rates. The acquisition of a vehicle in many cases involves financing because the disposable income of families has decreased in the last two years after the pandemic. Therefore, we find ourselves in an environment of weak demand, not as serious as that experienced very aggressively in 2020, but we are still far from achieving those levels. Then came the semiconductor crisis that sank supply, but luckily that is now history.
—Is the landing of Chinese brands in Europe a danger? How is it counteracted?
-They are so numerous and have such varied proposals that they will affect everyone. I believe that competition has historically made us strong. What is certain is that the arrival of these brands joins a moment of uncertainty due to technological change, which means that we face a major challenge.
–Do you think that the State can give up the 28,000 or 30,000 million euros it collects from taxes on hydrocarbons?
– I believe that this question should be asked to the Minister of Economy. I understand that when you manage the budget of a State you have to seek to balance it. If you lose income from one site, one of two, either you are more efficient in using the expense or you have to cut back on another. That will also depend on who governs us. But it is not up to us to make political assessments, it is up to us, above all, to explain that it is necessary to continue promoting electromobility.
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