By Szabolcs Nemes

The level of transparency with regards to the e-mobility ecosystem within the Romanian market remains relatively limited. Key questions such as ...

• What is the development status of E-mobility in Romania and how does this fare against the more mature markets?
• Which factors are driving E-mobility developments in Romania and how have these evolved over time?
• How does the TCO of xEVs fare against vehicles powered by internal combustion engines?
• What is the readiness level of is the national infrastructure with regards to e-mobility adoption and what is the outlook?

… remain largely unanswered. The Romanian E-mobility index (REI), a bi-annual report, aims to bridge this gap related to e-mobility by offering a data-driven perspective, centered around the major developments of the local market as well as related technologies.

Strong growth in sales of EVs/ PHEVs

xEV sales grew 31% in the first half of 2019 over the corresponding period of 2018. The share of EVs & PHEVs out of total new car registrations of ~0.9% puts Romania ahead of Italy or Japan and just behind Spain in terms of the share of xEV sales. At international level Norway leads the way in terms of xEV sales share, while China remains the undisputed leader in terms of sales volumes with +630,000 units.

More public charging stations, but few capable of fast charging

At the end of June 2019, the national charging infrastructure consisted of ~300 stations and was increasing at a steady bi-annual rate of ~30%. The number is still significantly below the national 2020 target of 6,000 stations.

The public charging infrastructure consists mostly of slow-charge stations with a maximum installed power of 50 kW and only ~25% of the stations have powers above 22 kW. The low share of multi point stations (~40%) can create inconveniences considering the high average duration for charging when compared to a traditional fueling station, especially if the chargers do not allow for advanced bookings.

Demand for electric powered vehicles continues its previous growth path

Increased customer awareness, especially regarding the main benefits of electric powered vehicles is an important driver of demand. Despite no major change between the total cost of ownership (TCO) of electric vs. internal combustion engine (ICE) vehicles, customers are starting to realize that EVs display clear cost advantages when the average yearly mileage is above a specific threshold.

Unlike the overall tendency of the Romanian automotive market, highly geared towards used cars sales, the segment of electric powered vehicles is dominated by new car sales.

Special topic – Introduction of the Oxygen vignette

Starting with January 2020, cars with engines Euro 2 or lower are banned from entering the Action Zone for Air Quality (ZACA) in downtown Bucharest. Non-Euro, Euro 1 and Euro 2 will be allowed in the rest of the Bucharest after paying an Oxygen vignette until 2022, when their entry will not be allowed any more. The ban for entering the city will be extended to Euro 3 engines starting 2024. Considering the high air pollution level in Bucharest coupled with the high car parc age and limited expected short-term improvements, restrictions on cars with high polluting internal combustion engines were required.

Thinking ahead - Companies need to start preparing if they want to avoid missing the e-mobility opportunity

• Following several years of limited development, e-mobility in Romania has reached the inflection point towards accelerated growth
• Strategic positioning as an e-mobility promoter is essential for future success – Acting now will require significantly less resources than recovering the lost ground in the future
• Traditional energy players should clearly be mindful of this when designing their future strategies – Gas stations currently host only 15% of total public charging stations – in the new electric world the meaning of 'convenience' is taken to the next level

About Romanian E-mobility Index (REI)

REI is a bi-annual report that aims to increase the level of transparency with regards to the e-mobility ecosystem within the Romanian market by implementing a data-driven perspective, centered around the major developments, as well as related technologies.

Would you like to know more about the Romanian E-Mobility Index and how companies can profit from the development of e-mobility in Romania? Please don't hesitate to contact our experts Szabolcs Nemes or Dragos Fundulea .