The current situation in the electric vehicle market is intriguing, as we find ourselves amid an industrial revolution that cannot proceed linearly
Just when the mining of lithium for the production of batteries for electric cars is a hot topic in Serbia, this industry is experiencing a serious decline. If there is anyone who can best answer all our questions regarding the electric car industry, it is undoubtedly Lidija Piroški, our prominent journalist and true expert in the automotive industry. Together with her husband Miodrag, she runs one of the most popular domestic media outlets, “Vrele Gume,” travels the world, tests a wide variety of cars, but above all, enjoys nature, striving for harmony with modern technologies.
Where does the electric vehicle industry stand today? How far has the technology progressed up to this point?
At this moment, we can talk about a crisis in the electrification of the automotive industry. At the beginning of the year, the sales of new electric vehicles stagnated, and now, in September, as we discuss this topic, the numbers are either declining or stagnating across Europe. There are multiple reasons for this. The development of the electric automotive industry has primarily been driven by political efforts to reduce CO2 emissions and pollution. However, such a significant industrial shift requires time. Car manufacturers have simply copied the business model from traditional car production, where larger and more expensive vehicles yield higher profits, which has influenced their planning for electric vehicle production.
European manufacturers have primarily embarked on mass electrification with expensive models that consume more energy and require large batteries. In Southern Europe, charging resources, such as charging stations, are not sufficiently widespread. The length of charging and battery duration remain major issues. In the Balkans, chargers are often weak, with a capacity of up to 60 kW, which is inadequate for longer intercity trips. Most drivers are accustomed to refuelling in five minutes, but with the current chargers, waiting can take up to three hours.
The range of electric vehicles is limited, and charging time is problematic due to the lack of ultra-fast charging stations
The range of electric vehicles is limited, and charging time is problematic due to the lack of ultra-fast charging stations. At the beginning of the year, a crisis occurred among electric vehicle buyers who were not willing to sacrifice their time, while the production of electric energy is still not entirely clean. Although this will change in the future, more time is needed for adjustment.
The current situation in the electric vehicle market is intriguing, as we find ourselves amid an industrial revolution that cannot proceed linearly. The two main problems are the limited range of batteries and the length of charging time, along with pricing. Manufacturers have based their business plans on large and expensive vehicles, whose value diminishes after leaving the showroom. Additionally, the market for used electric cars is in a problematic state, with low sales.
What are the main advantages of this technology, and what are its disadvantages?
The advantages of this technology are primarily the reduced emissions of exhaust gases, especially in urban areas, where pollution occurs where there are the most vehicles in a limited space. In this sense, electric cars are fantastic because they do not produce emissions while driving. The production of electricity is a completely different topic. More importantly, electric cars do not produce noise. They are also much simpler to use because, as our profession likes to say, electric cars are essentially computers on four wheels and only physically resemble cars. They are networked, and connected to computers, which makes them easier to manage.
Another significant advantage of electric cars is the service aspect. Essentially, there is no service like there is for traditional cars. There is no oil change, no engine, and no traditional breakdowns, except, of course, for bodywork or physical damage.
In Serbia, there is an increasing discussion about the installation of chargers for electric vehicles. Where do we stand today compared to the region and Europe? When looking at the number of electric vehicles in use, adapted legislation, and the availability of chargers.
In Serbia, there is an increasing discussion about the installation of electric chargers. Although we are, conditionally speaking, an underdeveloped territory in terms of the number of chargers, it is important to note that it’s not just the quantity that matters, but also the power of the chargers. We distinguish between chargers for urban driving and those for intercity travel, where we need more powerful chargers to be able to travel from city to city. Aside from Belgrade, Novi Sad, and Niš, there are not enough chargers in Serbia, and the existing capacities are insufficient.
The number of registered electric vehicles in Serbia is negligible, as they have generally been significantly more expensive than traditional cars and less comfortable. It would be ironic for someone to buy a car now and face such significant difficulties in everyday use.
It seems that the craze for electric vehicles has passed, and the market is once again turning towards fossil-fuel cars. Do you share this opinion?
It seems that the craze for electric vehicles has passed, considering that their use is not so straightforward. I must reiterate that the charging infrastructure in Northern Europe is much more developed than in Southern Europe. Driving an electric car currently represents a significant organisational and logistical effort for us, which is not particularly appealing to consumers. We all prefer not to be burdened by our vehicles, but with electric cars, we must think about where the chargers are located, what the range is, and how fast they charge. It often happens that, even when we are trying to save energy, we have to turn off all the appliances, such as heating in winter or air conditioning in summer, because that thermal energy is not a by-product of the engine’s operation; it also consumes electricity.
We are in a technological transition, and it simply isn’t possible to clean up all these sources of electricity overnight
Globally, the enthusiasm for electric vehicles has also diminished, particularly because the technology is not developing at a sufficient pace and because they significantly lose value as second-hand cars. Moreover, there are lingering doubts regarding their ecological impact, especially concerning the source of the electricity used to charge the batteries and what happens to those batteries at the end of their life cycle. The ecological narrative is no longer as bright as it seemed about a decade ago.
If electric cars have become a symbol of environmental protection, how would proponents of this argument explain that their operation still relies on electricity generated from dirty and dangerous sources (e.g., coal power plants)?
This is a significant problem with electric vehicles. However, there are two things to consider. Cars cause the most pollution in areas where they are most prevalent, which are large cities, while dirty electricity is produced elsewhere. We are in a technological transition, and it simply isn’t possible to clean up all these sources of electricity overnight. In developed countries in Europe, around 50% or even less of electricity comes from renewable sources, whereas in our country, that figure is about 75%. These are alarming statistics, but that doesn’t mean we shouldn’t actively transition to renewable energy sources.
Our country is very unfair to prosumers in the energy sense, which discourages citizens from participating in the production of clean electricity. I believe that being a prosumer in Serbia is not worthwhile compared to neighbouring countries. What needs to be done is to unite efforts and encourage electric vehicle owners, whether individual or fleet, to invest in solar panels through subsidies or favourable loans, so they can also contribute to a positive green balance.
In Serbia, the production of FIAT’s electric car, the Grande Panda, will soon begin. Have you had the opportunity to get acquainted with this model, and what are your expectations?
Fiat is part of the large company Stellantis, and I think it’s very good that Stellantis has decided to produce this model right here. Regardless of all the drawbacks of electric cars, the process of electrification is underway, and certainly, all mistakes and deficiencies will be corrected along the way. Our impatience is a completely different matter.
I was surprised that Fiat decided to increase the size of the Panda, a small city car, and create a vehicle in the mid-size category that will still have a relatively short range but will be classified as mid-sized in terms of dimensions. We’ll see how it turns out. This is a bold move by Stellantis, but I have no doubt they will find a way. We cannot judge solely based on our market, but I’m sure they have conducted thorough market research and know their customers well. I believe it will be successful. In any case, it’s fantastic that this model is being produced here.
Mining lithium is an unavoidable topic. What do you think about it, particularly in the context of the automotive industry?
We can no longer function without lithium; that is completely clear. It’s not just because of the automotive industry; our entire lives are geared towards batteries, and without various chargers, we cannot move anywhere. Lithium is present in mobile phones, laptops, and now in cars. What is important regarding lithium is the adherence to extraction standards, the preservation of nature, and finding ways to protect it, as it is invaluable. All the electric cars and technological advancements are pointless if, one day, we can no longer breathe the air or drink water.
This interview was originally published in the October edition of Diplomacy&Commerce magazine, issue #99.
Interview conducted by: Dragan Nikolić
Photos: Private Archive