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Europe; Technology Leadership Award – Commercial Vehicle – Electric Powertrain Solution Market

Greenhouse gas (GHG) emission regulations are strengthening in North America, Europe, and Asia (i.e., China). Moreover, the intensifying public concern over climate is propelling the automotive industry to reduce its carbon footprint. In fact, 16 urban areas have been declared low-emission zones in Europe, restricting the entry of high-polluting vehicles. With air quality in Chinese cities (including its capital Beijing) at notoriously poor levels, the government is moving swiftly to transition to alternative fuels across industries. In the United States, California Air Resource Board (CARB) is pushing for ultra-low-NOx regulations. In the aftermath of the 2015 “dieselgate” scandal, European courts are expected to direct stringent Nox and particulate matter (PM) norms. Considering crude oil price fluctuations and the prospect of penalties for diesel trucks on account of carbon footprint—especially by companies with CSR targets for their supply chain and the fact that electric vehicles (EVs) have lower maintenance costs—fleets are becoming keen on shifting to EVs. Because battery prices dropped nearly 80% during the 2010 to 2017 period, EVs have become the favorite alternative powertrain for automakers, both incumbents and start-ups.

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