The prices of raw materials, such as oil, increased during the first quarter of 2022, reflecting the effects of the war in Ukraine, as well as the continued growth in demand and various restrictions on supply. After many years of declining commodity prices, demand for commodities rose as the global economy recovered from the effects of the COVID-19 pandemic; that is one of the reasons for the increase in the price of fossil fuels. In addition, the Russian invasion of Ukraine has caused major disruptions in oil and gas supplies, driving their prices to record levels not seen since the 1973 oil crisis (Commodity Market Outlook, April 2022, p. 1).
Projections indicate that Brent crude oil will reach an average of “USD100/bbl in 2022, an increase of 42% compared to 2021 and that of gas double (Commodity Market Outlook, April 2022, p. 3). The behavior of commodity markets largely depends on the duration of the war in Ukraine and the severity of disruptions in commodity flows (Commodity Market Outlook, April 2022, p. 4). In the short term, such interruptions will increase inflation, and in the long term the effects of the war will depend on how far commodity trade is diverted, how much demand is reduced, and whether new supplies emerge (Commodity Market Outlook, April 2022, p. 4). In 2024, prices are expected to remain 31% above pre-war forecasts: this means that fuel prices will continue to rise internationally…and Ecuador will not be exempt from this.
On the other hand, the production of electrical energy in Ecuador is based on hydroelectric plants in Napo and Azuay; which ensures a stable production cost and this is transmitted to consumer prices. One of the main energy consumption is transport; To minimize the negative effects of the global increase in fossil fuel prices on the household economy and, moreover, on the environment, it is necessary to make the transition to means of transport driven by more environmentally and economically sustainable means. An option available in the Ecuadorian market is electric vehicles, with several brands present and with very good characteristics. Some myths about electric vehicles are addressed below.
Myth 1: The autonomy of electric vehicles is not enough
The range of a vehicle is the distance it can travel without recharging. Today electric vehicles can achieve a performance that ranges between 50 and 300 kilometers depending on the model; some even reach 500 or 600 km of autonomy. According to statistics, in Ecuador, the average distance traveled by a vehicle is 50 km per day. If we consider the average autonomy of an electric vehicle, this is more than enough to cover regular routes for more than a day with recharges at home.
The way you drive directly affects the consumption of the vehicle's battery and, therefore, its discharge rate. An electric vehicle should drive smoothly, at reasonable speeds, using regenerative braking instead of conventional braking as much as possible; and, if necessary due to lack of autonomy: disconnect the heating and cooling system, which can reduce autonomy by up to 30%.
Myth 2: The coverage of the public charging network is not extensive and does not provide security
If your biggest concern is long-distance travel, there is currently a network of public and private electric chargers in Ecuador. This network is constantly growing because the number of electric vehicles in the country is increasing: public and private chargers are being installed for the general public. Currently, there is no prepaid service for the charger network, but there is already a regulation that regulates the prices that charging stations may charge per kWh. In this page you can find some of them.
In addition, there is a very good news: Banco ProCredit has also made its own network of chargers freely available to the public and their location is available in the ProCredit Charging Stations application.
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Google play store: https://bit.ly/RSAndroidBPC
Myth 3: LElectric vehicles are very expensive and there is no secondary market in the country
You do not have to sacrifice your pocket to acquire an electric vehicle. On the contrary, there are already many options on the market and their prices generally vary according to the autonomy of the battery. Although it could be perceived as a high purchase, an electric vehicle generates great long-term savings due to fuel substitution and less frequent maintenance. In addition, electric vehicles offer high-end technology that improves your driving experience.
Although it is true that, at the moment, there is no market for second-hand electric vehicles in the country, it will continue to develop with the existence of more vehicles of this type. In 2020, 96 units were sold and in 2021, 348 between 2020 and 2022: a 263% growth in sales. The country has an electromobility plan, according to which it is projected that by 2030 there will be more than 150.000 electric vehicles in the country. In addition, most dealerships offer plans that receive your used vehicle in part payment and assign a bonus towards the purchase of your next vehicle.
Myth 4: EMaintenance of an electric vehicle is very expensive
Quite the contrary. An electric vehicle, as it does not have so many moving parts, does not require as much continuous maintenance, has less chance of suffering breakdowns and reduces the cost of operation; when compared to a combustion vehicle. Some examples: the maintenance of a common vehicle must be done every 5.000 km, while in an electric vehicle every 20.000 km; In addition, the electric vehicle does not need to change the engine oil and since it has zero gas emissions, you will no longer have to worry about passing vehicle gas checks.
Myth 5: Electric vehicle batteries wear out quickly and their capacity is reduced
It isn't true. The batteries can have an estimated life of 12 to 15 years by putting into practice the manufacturer's recommendations and the minimum guarantee offered is 8 years. A total change is not required either: today damaged modules can be replaced, greatly reducing costs. Of course, battery degradation is a fact; Like your cell phone battery, it is affected by high or low temperatures and charging patterns. To reduce the effect of temperature, make sure that the vehicle you buy has a cooling system for the batteries.
Frequent use of the vehicle does not necessarily reduce the useful life of the batteries, rather the way in which you charge your vehicle does: avoid driving with a charge percentage of less than 20% and try to keep the charge close to 100% for a long time. If you are not going to use your electric vehicle for several weeks, leave the batteries between 50 and 75% charged. If it is much longer, and your control system allows it, slightly discharge the batteries from time to time, for example by activating the heating, and then recharge it within the mentioned range.
Myth 6: An electric vehicle is dangerous due to the risk of fire or explosions
It has been found that the risk of fire from an electric vehicle is, in general, comparable or even lower than in the case of a gasoline or Diesel vehicle. The safety provided by a vehicle is one of the most important parameters for your choice and electric vehicles are no exception; its manufacturers must comply with all safety requirements, an electric vehicle is as safe as a combustion vehicle. Here you can find more information about it: euroncap.com
The batteries are well protected, as far away as possible from potential impact zones, and the vehicles have a safety system to prevent them from catching fire, even in the event of a very strong impact.
In the event of any relevant impact in the area where the batteries are located, for example: in the underside of the vehicle, if that is where they are located, you must take the vehicle for inspection. A deformed battery can present a short-term fire hazard.
It is important that the charging point is installed or checked by an authorized professional and has the proper protections so as not to overload the electrical installation. Do not wash or carry out any action on the vehicle during the charging process.
Myth 7: Electric vehicles are too small, I need more space
The electric vehicle industry is constantly developing and offers the market different models of vehicles from bicycles, scooters and motorcycles to SUV-type cars in which a family can travel comfortably.
If you have not yet decided on an electric vehicle, this information may interest you: in addition to the above advantages, users of this type of vehicle have some specific benefits:
¡with your electric vehicle YOU AVOID THE PICO AND PLAQUE!
Did you know that electric vehicles are exempt from PICO Y PLACA in the municipality of Quito? You could use your vehicle every day, without any type of restriction
¡STOP POLLUTING the air by using fossil fuels!
Have you thought about the polluting gas emissions from your vehicle while you go to work, your home or go on vacation? Maybe not, but how about these numbers: a fuel-powered vehicle emits approximately 3 TONS of CO2 per year; 20 trees are needed to absorb them.
Transport generates one of the largest contributions to polluting gas emissions. Therefore, the POSITIVE EFFECT of using an electric vehicle is IMMEDIATE: it significantly reduces CO2 and Nitrogen Oxide emissions into the atmosphere, polluting gases that negatively affect health. human.
¡A more comfortable driving experience!
As the electric vehicle does not have an internal combustion engine and has few mechanical parts, it makes much less noise.
the acceleration of electric vehicles, mainly at start-up, is much greater than in combustion vehicles, almost at the level of acceleration of sports vehicles, because power delivery occurs practically from when the vehicle is stationary, while the engine Combustion requires a minimum of revolutions. It is essential that you familiarize yourself with this difference and learn to dose the accelerator pedal.
Electric vehicles have futuristic models with a high level of equipment for advanced driving aids. Be careful: these aids must never be used to diminish your attention or distract you while driving: they are not a autopilot!
¡Save using your electric vehicle!
With the sustained increase in fuel prices, you have surely wondered how it is negatively affecting your pocket and how you could reduce these costs. One of the most effective solutions could be to change your gasoline vehicle for an electric vehicle.
Currently, there are some economic benefits for electric vehicles in the country, among others: exemption from tariffs, ICE and VAT; and preferential rates for vehicle charging (5-10 $c/kWh), in case the meters are registered.
**Calculations made with an average route of 20000km per year.
*Comparison with a 1.5cc fuel vehicle
