The Tribune

• Eyes 300 vehicle sales, 50% growth in 2023

• But not so fast, argues association president

• Bahamas must first ‘catch up on back end’

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian dealer yesterday forecast that electric vehicles will account for 30 percent of all new auto sales within five years despite rivals’ concerns that this nation must first “catch up on the back end”.

Pia Farmer, partner at Easy Car Sales, told Tribune Business it is targeting 300 electric vehicle sales for 2023 following 50 percent growth last year. Disclosing that the dealership is “shooting” for a similar expansion this year, she added that the main obstacles to the sector’s growth are the provision of sufficient public vehicle charging stations and a demand that is outstripping supply.

Describing present trading conditions as “crazy business”, she said: ‘It’s going in the right direction. Last year we sold 50 percent more vehicles than the year before. We sold over 10 percent of all new vehicles in The Bahamas. We can say BYD is one of the top three brands in the country now.

“We sold 190 cars last year. That was 50 percent more than the year before. Our target for this year is 300. We’re seeing a lot of consumers coming in for electric cars, and we’re starting to bring in a lot of new models. The most significant growth has been in the fleet business.”

This has been driven primarily by the Government, and companies such as DHL and Cable Bahamas. Ms Farmer said the former’s vehicle fleet was now 100 percent electric, while the BISX-listed communications provider was steadily transitioning away from traditional combustion and gas engines by switching more autos to electric every quarter.

“There are a lot of small and medium-sized businesses that are watching the bottom line, and saving fuel and maintenance costs of up to 70 percent compared to gas vehicles,” she added. “We have more demand than we can fulfill right now.

“We have a lot of cars on order and expect the pace to pick up. I have a few hundred on order over the next three months. In stock we have maybe a couple dozen. Most of the vehicles are sold before they come off the boat, but not all of them. We have extras.”

Asked about future growth prospects, the Easy Cay chief told this newspaper: “I think it’s going to be exponential. It’s just going to be exponential. We’re shooting for 50 percent more for this year than last year. We expect that trend to increase. Our challenge is to provide enough electric vehicles to meet the demand.

“We expect in the next five years that one-third of cars sold will be electric. That’s what we think. That’s what we are thinking now and preparing for. The challenge is to get enough different models to meet different needs, commercial and consumer, at prices that are affordable. It’s a challenge to keep up with the demand. It’s a good problem to have, but not easy.”

Ms Farmer said electric autos last year accounted for a 10-11 percent market share of all worldwide vehicle sales, with that percentage having roughly doubled from 5 percent the year before. The latter represented a rise on its prior year comparative of 1-2 percent, with that performance occurring during the peak of COVID-related lockdowns.

“We were a little over 10 percent,” she added of the electric vehicle share of new car sales in The Bahamas, “so we’re keeping trend. It’s in line with the rest of the world. It’s moving very fast, and we are very optimistic about the future. Things will only get busier and busier. We are preparing for a busier future, and doing projections now for how many check-up bays will be needed for every 1,000 electric vehicles on the road.

“We don’t do services. It’s a check-up once a year that lasts two hours. That’s your annual service. We’re doing projections now for how many people will need to be supported post-sale, how many check-up bays we will need. We’re already working on that.”

Ms Farmer said Easy Car’s electric vehicle workforce had quadrupled in three years, having started at four and climbed to the current 16. The dealership is now looking for an additional six recruits in this area, and will advertise for four of these posts next week.

However, Ben Albury, the Bahamas Motor Dealers Association’s (BMDA) president, voiced scepticism to Tribune Business that electric vehicles will be the sole solution to the industry’s sustainability issues moving forward. He added that the segment’s launch in The Bahamas had not been accompanied by vital supporting infrastructure and ways to dispose of the lithium batteries employed by electric autos.

“Right now, I think the problem with the electric vehicle sector is it has been put ahead of other things like the stability of the power grid, the cost of electricity and no proper disposal of lithium batteries, which are bad for the environment,” Mr Albury argued. He also described lithium-related fires as “explosive”, based on experiences elsewhere in the world, and added that the fire department must be trained to deal with them.

The BMDA chief said his “biggest concern” was whether there were sufficient numbers of Bahamian mechanics trained to service electric vehicles, adding that it was not something that could be entrusted to unskilled staff. “I think it’s going to have its place,” Mr Albury said of electric vehicles, “but as time goes on there are studies showing it’s not sustainable to provide everyone with an electric vehicle.”

Suggesting that hybrid vehicles and hydrogen-driven autos will also have a part to play, the BMDA chief said: “You’ll have a small segment of hybrids growing more, you’ll have a small segment of electric and a small segment of hydrogen. That technology is being produced and discussed.

“I think it’s going to be a mixture of these things, but then the gas combustion engine will be around for the foreseeable future. I am aware of its role as this technology grows and progresses, where it will get better and better.” Returning to the environmental side, Mr Albury also questioned whether electric vehicles would simply be dumped once their batteries ran out.

“The cost to replace a battery runs from $15,000 to $20,000 presently,” he added of electric autos. “You have people buying new and used electric vehicles. What happens if they get to the place where the battery needs to be replaced, the warranty has run out and they cant afford a new battery?”

Acknowledging that lithium battery disposal and replacement could represent a business opportunity moving forward, Mr Albury said concern over the battery’s remaining lifetime could also impact an electric vehicle’s resale value. “We need time to catch up on the back end,” he said of The Bahamas’ electric vehicle push.

Ms Farmer, meanwhile, said there was still “a lot of misinformation” circulating about electric vehicles - including that persons could be electrocuted - which she branded as “complete nonsense”. She added that the facts were available for all who want to know and understand the correct details.

Describing the provision of public electric vehicle charging infrastructure as “the biggest challenge” to the sector’s growth, Ms Farmer said Easy Car Sales is providing purchasers with chargers when they acquire an auto so that they can charge at home or in the office.

“The hassle of doing business is always hard, but it’s hard for everybody,” she added. “Clearing vehicles from Customs now is taking so long but that’s a problem everyone is experiencing, not just electric vehicles.”