Key Drivers and Challenges of EV Implementation in Russia

Nowadays there is an exciting change in the automotive market and vehicle technology. The tendencies for safe ecological use, less CO2 emissions and comfortable city area provide customers in such countries as China, USA and EU to look at EV as possible alternative for gasoline transport. At the same time, there is poor fleet of EV on Russian market despite its great potential. This research observes the key drivers and challenges of EV adoption in Russia with the help of STEEPV analysis, Survey with Questionnaire, Market Overview and observation of best practices of EV-leaders. Market analysis has shown that Russian market of EV is poor for model’s diversity and presented mainly by luxurious brands and people of middle class are not able to afford it. In order to investigate key drivers, was used STEEPV analysis and review of existing latest works. The main challenges of EV adoption was investigated by survey with questionnaire in which special attention was paid to people who have driver license and own car as potential EV consumers. STEEPV and Survey with questionnaire help to emphasize 4 main hurdles of EV adoption on Russia: the high cost of new EVs, the limited charging infrastructure currently available, lack of governmental support for EV owners, consumer misperceptions about the operation of EVs. At the same time, high cost of EV compensates by growing income of residents (especially in Moscow) and growing prices for petrol and diesel. Public skepticism for EV use possibility opposes growing empathy for new technological solution and skew for younger generation among cars owners. The main challenge as high cost of EV could be reduced by potential local production of EV by Lada and lack of charging infrastructure cold be revealed by the start of local production of electric charging station (in Rostov). All these challenges could be overcome with Governmental support, which nowadays is not enough both on federal and regional levels. The existing programs of EV adoption support also provide these actions but they are very poor in contrast to such countries as China and Norway. The possibilities for potential EV consumers could be financial and non-financial demand-strategies: tax incentives for purchase, subsidies for the purchase of EV, free parking, availability of dedicated bands for EV is a nice bonus for EV owners and experience of Norway shows that these possibilities could really increase the popularity of EV. What is more, the strategy of supply increase is focused on local car producers and support them in EV technology development for further mass-production: EV quotas for producers, public Investments in R&D sector. All these actions are proved by successful experience of other countries and possible to implement in Russia in order to increase EV adoption and its popularity.