2023-11-08 17:07:17
The market for electrified vehicles (a term that includes 100% electric vehicles and hybrids that combine fuel in their operation) grew 642% in the last five years.
Access to new technologies and tax advantages expanded sales of electrified cars in Ecuador.
The behavior continues this year, since in the first nine months of 2023 (January to September) sales of new electrified vehicles totaled 8,364, an increase of 58.1% compared to the same period in 2022.
In the same period of 2019, 1,127 electric and hybrid cars had been sold.
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In fact, September was the month in which the most of these vehicles were sold since they became available in the country with a total of 1,091, which is 87.8% more than in the same month of 2022.
The diversification of the offer also boosts the electrified market, since the number of available models increased by 720%, going from 13 models in 2015 to 107 in 2023, according to Genaro Baldeón, executive president of the Association of Automotive Companies of Ecuador (Aeade).
Although there is a boom in sales of this type of automobile, the cost of insurance is more expensive compared to conventional cars that use gasoline or diesel.
Karina Galarza, technical manager of Marseguros, explains that the same coverages applied to other types of vehicles are regularly offered, since it is the same standard product.
Although he recognizes that “spare parts tend to be more expensive and specific.” Hence, the cost of the monthly premium depends on the insurer. “But what is negotiated is that they are sent to the dealer when they have an accident, directly to the dealer and not to a multi-brand workshop.”
One of the differences is that the deductible is a little higher than that paid for gasoline vehicles, he adds.
“There is no standard rate, it depends on other factors, such as the age of the driver, marital status, cost of the car and who drives, because there is no special product for that type of car,” says Galarza.
The website of an international insurer publishes in its grid of plans one available for Ecuador in the category of electric and hybrid vehicles that offers a monthly premium from $81 for a range of insured amount that goes from $40,000 to $80,000.
The costs are not yet completely defined since insurers are still calculating the average prices derived when fixing an electric car.
The clear thing is that their repair cost is higher compared to gasoline or diesel ones, especially due to the batteries.
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An article about the Hertz company, which renewed its fleet of rental cars with the purchase of electric ones, indicates that repairs for these can be twice as expensive as for a fossil fuel car in the United States, because the battery is usually replaced.
Claims related to electric vehicles are 25% higher than combustion ones. And repairs can take 14% longer due to challenges in sourcing spare parts and finding specialist technicians, indicates a study by consultancy Thatcham.
As these are relatively new cars on the market, there is no historical maintenance data, which makes it difficult to determine average prices.
Patricio Salas, president of the Federation of Insurance Companies (Fedeseg), affirms that insurers operating in the country are just dealing with this problem due to the increase in sales of this type of vehicles: “The national market has not yet adjusted its prices. technicians to that reality. It is a global trend that will have to be resolved, for the sustainability of insurance,” he indicates.
What are the best-selling electrified cars?
Electrified vehicles already have a share of 8% of the total cars sold in Ecuador until September of this year. They are three points more than the weight they had in the market until the same month last year.
It is the second market with the highest penetration of these technologies in the Latin American region, surpassed only by Colombia.
The cheapest is the JY7222 model from the Jiayuan brand, whose reference value is $9,200. It is completely electric and for city use. It allows you to travel with a range of 80 to 100 km and recharges from a 110 or 220 volt outlet in six to eight hours.
Hence the following ones that have a greater passenger capacity and distance covered after each charge (range) cost starting at $17,000. This includes hybrids that make a combination of electricity and fossil fuels, although they do use less gasoline than conventional ones, such as the Suzuki Swift model, which is the best-selling electrified car in the country.
Electrified vehicles include MHEV (light hybrid), HEV (conventional hybrid), PHEV (plug-in hybrid), EREV (extended range electric) and BEV (battery electric) technologies.
In 2 years Suzuki has invested $20 million in the local market, which places its Swift model as the best-selling in the electrified segment
The number of electric stations has almost tripled since December 2022
Of the 8,364 new electrified vehicles sold this year, 9.2% correspond to electric and plug-in hybrid cars, which number 770 (507 electric and 263 hybrid).
These require being connected to power as part of their operation.
Electric and hybrid cars use several types of technology that are mainly summarized in three.
The first corresponds to the 100% battery electric vehicles known by the acronym BEV (Battery Electric Vehicle), which require being plugged in and charged from an external energy source after reaching a certain autonomy. These are zero emission, but have limitations when going from one place to another, because they require charging.
Its participation in the electrified car market is negligible precisely because of the limitation of moving between one city and another, because the infrastructure of electric stations is lacking.
The second technology is known by the acronym PHEV (Plug-in Hybrid Electric Vehicle), which includes hybrids that can work either with the electric motor that needs to be plugged in and charged or with the fossil combustion engine, these are plug-in hybrids.
Sales of new plug-in electric vehicles per year
201512016842017123201813020191032020106202128820224402023 (en.-sep.)507
Sales of new plug-in hybrid vehicles per year
201592016420177120181320192620204320214120221572023 (en.-sep.)263
Source: Association of Automotive Companies of Ecuador (Aeade)
The electrical installations to plug them in are in homes or even in the companies that have them, but there are also options in the country’s cities, such as gas stations, shopping centers and public charging points located in specific places.
These allow greater distances to be covered since there are electric stations in the middle of the routes and these cars have a specific autonomy with each full charge.
The Aeade reports a total of 214 charging points as of this month of October in the country. As of December 2022, there were 82 charging points (electrolines) distributed in Guayaquil, Quito, Ambato, Cuenca, Loja, Azogues, Atacames, Puerto Ayora and Puerto Baquerizo Moreno. That is, their number has almost tripled.
Of those available today, there are fast charging connectors in the Samanes park and two more at the Terpel station, in Guayaquil.
In Quito, fast charging connectors are located at the Quito Electric Company and in Terpel.
The fast charging ones are 50 kW and 100 kW, which means that a battery can be fully charged between 40 minutes and an hour and a half, depending on the vehicle and the kilowatts of the electric station.
Only the fast charging ones are accessed after paying. In the rest, which are the majority, charging is free.
Number of electric stations in Ecuador
CityLoading pointParticipationQuito8339 %Guayaquil5425 %Cuenca2311 %Others5425 %Total214100 %
Source: Association of Automotive Companies of Ecuador (Aeade)
The third technology is known by the acronym HEV (Hybrid Electric Vehicle), the best-selling and most popular in Ecuador and which includes hybrids that move alternately with the electric motor, which does not require being plugged in and charged, and the fuel motor. fossil, which consumes less gasoline precisely due to this combination. These work with battery regeneration and fuel, because they have a combustion engine and several electric ones.
Conventional hybrids that do not need to be plugged in are the lowest cost.
The savings come with each start, even when waiting at traffic lights, since there the electric motor continues driving. (YO)
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