Electric vehicles reduce the demand for oil. And the electric car is not the main culprit

Electric vehicles reduce the demand for oil.  And the electric car is not the main culprit

In 2021, electric vehicles are disappearing from the market every day 1.5 million barrels from oil. While the number is remarkable in itself, the truth is that the number is still small as it accounts for barely 3.3% of the daily world consumption of this product.

This is data published in the latest Bloomberg NEF report regarding the impact EVs are having on the fossil fuel industry. It analyzes, for example, the number of zero-emission vehicles (including PHEV) sold. But that’s not the fact that caught our attention the most.

According to the business newspaper, the real causes of the drop in oil demand for road transport are the two and three wheelers. These pure electric vehicles in particular have eliminated the need to use 67% of those 1.5 million barrels per day.

In other words, motorcycles and electric tricycles have reduced global oil consumption by 975,000 barrels. More than the sum of buses, passenger and commercial vehicles. In fact, passenger cars lag far behind in this comparison and are responsible for 13% of the 1.5 million barrels per day being withdrawn from the market.

It’s true that passenger cars are the segment growing the most in this regard, driven in particular by sales in China and Europe (85% of the zero emissions market). In Norway, for example, the sum of electric vehicles and PHEVs reaches 97% of registrations, in Sweden 60% and in the Netherlands 51%.

Despite everything, motorcycles and Asian countries they are the major promoters of trend reversal. If 1.5 million barrels a day of oil were taken off the market last year, it was thanks to them.

The two wheels, the true drivers

Asian countries appear to be better adopters of electronics than Europe or the United States. At least in terms of market volume. Apart from the pollution caused by combustion traffic, electric vehicles represent a important business opportunity to fill a gap in the industry.

The simplification of electric motors and new forms of mobility are driving new companies such as Yadea or Niu into a growing market. In fact, more motorcycles than cars were sold in 2020 during the pandemic, with 74 million units for the 70 million passenger cars.

According to earlier data from Bloomberg, 25 million electric motorcycles were sold in 2020 out of the 74 million registrations. 37% of the market, compared to just 5% of EVs sold worldwide this year. The penetration of this mode of transport is so high that 80% of households in Malaysia, Indonesia, Thailand and Vietnam have a motorcycle at home.

Although penetration of electric two-wheelers in India remains low, Citi highlights that their growth has doubled in recent years, multiplying the number of this type of technology in one of the most important two-wheeler markets

With a dual purpose (reducing pollution and improving their global competitiveness), the countries of Southeast Asia decide to transition to two and three wheel electric mobility. Thailand hopes to produce 53,000 such motorcycles by 2025.

In India, two-wheelers with a maximum rated power of less than 0.25 kilowatts and a speed limit of 25 km/h do not pay any mechanical wheel drive tax, regardless of the configuration. In Spain, for example, a scooter with a seat is classed as a moped, even if it is limited to 25 km/h like the Vässla Bike.

In addition, the production of electric motorcycles is simple and inexpensive and no different motors are required depending on the cubic capacity. It’s as simple as cutting your benefits for software. This is one of the reasons given by the American business newspaper. That and the development of electric bikes that have blurred the lines from the traditional motorcycle.

It is becoming easier and easier to find manufacturers that offer electric bikes with more than a hundred kilometers of autonomy or where pedaling is not necessary. In Europe the power assist has to be pedal assist, but in the United States and other markets these two wheelers are becoming more common. And their sales have skyrocketed.

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