The vehicle you traded in a decade or two ago may still be on the road, plying roadways in Central America, Africa, or Eastern Europe. The developing world has been shipping out older, gasoline guzzling cars and trucks for a long time. In fact, one-quarter of the world’s population lives in countries where about 50% of the vehicles are imported used cars.
Drivers in low-income countries seem resigned to gain our older technology. But at a broader level, sending out used gasoline vehicles, instead of scrapping them, is not good policy. These vehicles seldom meet modern safety standards, and they require more parts and maintenance as they age. Significantly, older cars pollute more which increases personal health risks, asthma, and morbidity. Older vehicles account for a significant share of global carbon emissions. And, they lock developing nations into importing more fossil fuels.
EVs Turn the Tide:
Fortunately, electric vehicles can help turn the tide. Since 2019 China has permitted exports of used cars, perhaps as a means to maintain factory production levels and sell more products domestically. China has a pipeline for used electric vehicles, since sales of new EVS there now outnumber gasoline cars.
For different reasons, Western countries also have a surplus of used electric vehicles. These vehicles become available as the first wave of buyers seek recent models with better range. Serviceable vehicles like a used Nissan Leaf or a first-generation BMW i3 are no longer sought after in first-world countries. Used EVS are estimated, on average, to cost about 8 percent lower than gasoline cars. Many retail for $25,000 or less.
EVs are Better Choice:
Electric vehicles are a better choice for first time car-owners, whether the driver is the privileged teen in a Western country, a business person leasing vehicles to other drivers in a developing country, or members of a car-sharing collective. These diverse groups share something in common. They can skip over the old technology of the internal combustion engine and jump into cleaner, quieter, and safer transportation. They may have already embraced battery powered transportation riding e-bikes and e-scooters.
There’s a parallel that has happened in telecommunications. Phone users in developing countries jumped (leapfrogged) into mobile phones. They did not use old technology to make calls over copper cables that connected to switching centers. The mobile phone displaced the need to wait for the utility to string a wire or alternatively, to rely on the pay-phone down the road. New users literally vaulted over the telecommunications history into mobile times.
Automotive Leapfrog:
A similar leap can now occur in automotives. The rising generation does not have to visit a gas station or know why they sell beer. And, they do not have to begin with a new, fresh-from-the factory model. A previously owned, second hand vehicle will serve them with many more miles of operation, at a lower cost, and with less need for gasoline-dependent infrastructure. Again, there’s a lesson from the telecommunications industry. We might trade in our mobile phones every two or three years, but these old phones could get new software and have a second life.
Meanwhile, developing countries have shown they can produce electricity differently.
According to Enil, the energy firm, (citing Bloomberg) renewable energy production in developing countries has surpassed the capacity generated by fossil sources. While Enil recently failed in the U.S. to develop connected chargers, this company does have extensive experience building wind power and solar installations elsewhere.
The ultimate fusion between the benefits of used electric vehicles and electricity comes to bear in the large batteries. Pilots are now using spent vehicle batteries to support grid services. When batteries drop below energy levels sufficient for transportation (about 80%) they can still, like our phones, begin their second life. Importing used electric vehicles helps developing countries leapfrog over fossil fuels towards battery-centric energy that can be powered with solar, wind, and other sustainable sources. Meanwhile, they will also help clean-up air pollution and dirty emissions from the gas-guzzling imports.