Can the EU pave the way for electric cars?[fr] 

Despite scepticism, there is a growing sense at industry and government levels that the planets are now aligned in a way that will bring electric vehicles from novelty concept cars to mass production. 

The question is what can be achieved in the European Commission's next five-year term and whether it will have the wherewithal to tackle a raft of significant challenges which must be solved quickly if European industry is to emerge as a world leader. 

Christian Egenfeldt, European business development director at Better Place – an electric vehicle service provider – says developing a standardised recharging infrastructure is crucial in order to avoid "a Betamax versus VHS" situation where incompatible technologies compete. 

Better Place is already working with authorities in Israel, Denmark and Australia to build and operate the infrastructure required to shift to electric vehicles, and Egenfeldt believes the EU can help coordinate the transition to electric cars. 

"Standardisation is very important. If we start using the same batteries it becomes much easier to operate this business in Europe and it's easier to become a customer," he said. 

He said billions of euros will be invested in the car industry over the coming years, but this should be used to incentivise pilot projects and test electric car technology. "It's important that industry develops cars for all purposes – fixed battery vehicles for the cities and exchangeable batteries for longer-range transport." 

Egenfeldt stressed that charging vehicles in an intelligent way is crucial to ensuring that the electricity infrastructure is not overburdened when electric cars are commonplace. 

He said progress could be made during the next Commission's five-year term if it can focus on standardisation, supporting operators and finding ways for governments to collect the same revenue from electric cars as they receive from gasoline. 

"A lot can be done in the next five years. You're not going to see a revolution, but an evolution," he said. 

Tax incentives could be key for early adopters 

Going Electric, an association of business and NGOs working on sustainable transportation, is calling for a range of subsidies to support consumers willing to purchase battery-powered cars, including lower VAT rates and reductions in household tax. 

Electric cars should be exempted from tolls and congestion charges and allowed to use bus lanes until such vehicles are available on the mass market, the organisation said in a submission to the Commission's 'Future of Transport' initiative. 

The Commission itself has pledged in a memo to pursue harmonisation at all levels of electric car infrastructure. "Many new technologies and regulatory practices will develop in the next few years to address transport challenges. Coordination will be needed to ensure equipments' interoperability and to avoid the proliferation of different systems at national level," it said, making special mention of finding common ground on tolls and congestion charges. 

The EU executive will next week adopt an action plan on urban mobility, which includes a commitment to intensifying research and demonstration projects on lower- and zero-emission public transport. The plan will be rolled out over the next four years with a review in 2012. 

Scepticism remains, even at industry level 

However, scepticism remains that electric cars will continue to be a niche market for the foreseeable future. Amid the buzz about concept cars at the Frankfurt Motor Show was a healthy smattering of sceptics – including some from within that industry. 

Takeshi Uchiyamada, head of research and development for environmental technologies at Toyota, was quoted as describing the rush for electric cars as "a fever" that had spread throughout the industry. 

"But in the 1990s, lots of vehicle manufacturers launched electric vehicles, and Toyota did too. And if the question is if there have been any major technological developments since then, the answer is 'no'," he said. 

Meanwhile, regional and city authorities stand ready to roll out schemes supporting low-carbon cars but are fearful of backing the wrong horse until a dominant viable technology emerges. 

For a new Commission which will support the auto sector in finding innovative, marketable solutions, the challenge is to provide clear signals to industry, local government and consumers without pouring scarce public money into dead-end demonstration projects.