jugnoo

Thinking of starting your own mobility business?

Talk to the world's best mobility service provider and get your business sorted!

Let's Talk
jugnoo

Is E-mobility a challenging market since ABB – a Sweden MAAS company, delays its IPO?

First, let us give you a brief of what ABB is. ABB is a multinational corporation headquartered in Västerås, Sweden, and Zürich, Switzerland. It is a cutting-edge technology company that collaborates with utilities, industry, transportation, and infrastructure. ABB pushes the boundaries of technology by integrating software into its electrification (E-mobility business), robotics, automation, and motion portfolios to drive performance to new heights. 

ABB E-mobility | Jugnoo.io

ABB is paving the way for a zero-emission mobility future. From opportunity charging for electric buses and trucks to high-power chargers for future highway stations, intelligent transportation solutions exist. Transportation is a significant source of CO2 emissions worldwide. This sector accounts for around 24% of total emissions, with cars, trucks, and motorcycles accounting for more than 75% of those. Passenger cars are responsible for 60% of worldwide road transportation emissions.

As a result, the mobility industry is unleashing a dazzling array of innovations geared for urban roadways, including mobility-as-a-service, enhanced traffic management, and, most crucially, mobility electrification. Thus, ABB believes that combining electric mobility with renewable energy generation can result in a drastic reduction of global CO2 emissions. This will not only help meet our CO2 emission targets, but it will also benefit our health and comfort by reducing pollution and noise.

ABB Delaying IPO of E-Mobility Business

As discussed above, ABB is laying the groundwork for a future of smarter, more dependable, and emission-free mobility that is available to everyone, everywhere. They have a wide variety of offerings in the E-Mobility business. After seeing the progress in this business, they decided to list this sector in the second quarter of 2022. 

ABB E-mobility | Jugnoo.io

But according to the recent news, ABB has delayed the initial public offering of its E-mobility electric vehicle charging business, citing “challenging” market conditions. Although the company is trying to observe the market developments and intends to launch the IPO in the coming weeks.

According to Chief Executive Bjorn Rosengren, ABB expected to raise at least $750 million from the IPO. They haven’t still mentioned the challenging market conditions that they’ve been facing. But we’ll still try to come up with a few market challenges that we think are impacting the EV industry.

Market Challenges that Impact the EV Sector

As the electric car market grows, firms and governments worldwide have declared their unshakable support for EV adoption. In one of our recent articles: Will Electric Vehicles take over the petrol/diesel automobiles soon?; we clearly mentioned how high-end and standard car manufacturers are gradually shifting their focus entirely on the electric automobiles. While it’s evident that automakers are warming to the idea of electrification, there still seem to be some concerns influencing electric vehicle adoption.

EV range anxiety

Range anxiety is the fear of driving an electric vehicle for a certain number of kilometers or how long the battery will survive. Many electric vehicle owners want to go great distances on a single charge, which is impossible with current battery technology. The battery’s energy density is a critical factor in EVs’ ability to travel great distances while charging quickly.

Infrastructure for Charging

ABB E-mobility | Jugnoo.io

All-electric consumers and fleets require access to charging stations, commonly known as EVSEs (electric vehicle supply equipment). For most drivers, charging at home or at a fleet facility is the first step. It can be difficult, though, because not everyone has access to an EVSE. Charging stations are limited as of now. Installing them in areas like offices and public places could assist boost market adoption.

Price remains a significant concern

The cost of owning an electric vehicle is currently higher than that of vehicles with traditional drive systems, although this can be countered by taking advantage of government incentives. Manufacturers expect cost equilibrium by 2025, if not sooner, and are working closely with the electric vehicle battery manufacturing supply chain to cut costs and improve overall efficiency.

Vague Consumer Behaviour

Uncertain customer behavior, coupled with the higher costs of EVs, as well as challenges with charging infrastructure, are major roadblocks to the sector’s growth. For instance, In India, the average starting price of an electric automobile is around USD 18000 (INR 13 lacs), while the typical starting price of a traditional gasoline-powered vehicle is around USD 6000. (INR 4.5 lacs). This roughly threefold price represents a significant market entry barrier.

Innovative technologies will make electric vehicles a reality for all.

ABB E-mobility | Jugnoo.io

The entire supply chain must collaborate to produce better batteries in order to achieve greater range, faster charging times, and lower costs. Manufacturers should concentrate on refining the battery materials that power today’s electric and hybrid vehicles, as well as creating next-generation technologies to satisfy the market’s projected needs.

Related Resources

No Comments »

Leave a comment

Your email address will not be published. Required fields are marked *

Jugnoo Post

Want to hear more about tech in mobility solutions?

Get tech related resources delivered to your inbox directly
Jugnoo Post

Having some queries?

Drop us a message and we will get get back to you shortly.

Jugnoo © 2024 Socomo Technologies Pvt Ltd. All Rights Reserved.