Pravesh Raghoo

PhD Candidate / Researcher / Energy Consultant

The case for Electric Vehicles in Mauritius


December 22, 2022

The future of inland transportation is electric vehicles (EVs).  Recent efforts from Mauritian authorities to stimulate EV adoption show that they recognized the tangible benefits of EVs for a greener and better environment. 
As of July 2022, excise duty on vehicles with an electric boost system has been removed, compared to gasoline- or diesel-fueled conventional vehicles where excise duties are between 45% (<551 cc) to 100% (>2000 cc).  In addition, a buyer of an EV can claim a 10% negative excise duty based on the value at importation, or Rs 200,000 ($4,700) whichever is lower, on the purchase of an EV.  A 10-yr EV Integration Roadmap for Mauritius was also commissioned in 2020 by the Ministry of Energy and Public Utilities (MEPU) to guide actions.
The use of EVs will decrease fuel importation, enhance energy security and resilience, reduce noise pollution and improve public health, and decrease carbon dioxide emissions which are results authorities are seeking over concerns of climate change and oil price volatility.  Additionally, almost all car manufacturers have an EV launched or under production and have already fixed targets to phase out conventional vehicles over the next three decades making the shift to EVs inevitable.
By mid-2020, before the tax incentives were implemented, there were around 330 EVs in Mauritius.  Case studies in Norway and Rwanda show that these incentives might work to boost electric mobility.  More EVs are thus anticipated and this article makes a case for their widespread promotion and adoption in Mauritius.
Small islands are a prime market for EVs.  Their smallness, road network, and limited commuting distance of users with respect to continental countries make EV technology worth exploring in islanded context.

Expected Cost of Ownership

The upfront cost of a full EV is around 70-80% higher than conventional vehicles but economic analysis from the World Bank has shown that the financial rewards of EVs are equally substantial as EVs are less expensive to run and maintain.  Lower maintenance costs alone can amount to Rs 210,000 (~$5,000) to Rs 250,000 (~$6,000) savings over their lifetime. 

The cost of using electricity in an EV as fuel outweighs the cost of using diesel or gasoline in conventional cars.  In Mauritius, gasoline and diesel are largely taxed and electricity is subsidized bringing even greater savings.
Another operating cost aspect is that EVs are more energy efficient than conventional vehicles.  A typical EV consumes around 0.5-0.7 kWh per km whereas a conventional vehicle consumes around 0.8-1.4 kWh per km (converted to kWh for comparison, ~0.09-0.15 L gasoline per km), depending on vintage and fuel efficiency standards.

Range Anxiety

Simply put, range anxiety is the fear of not having enough battery charge in the EV to reach its destination, leaving occupants stranded.  It stems primarily from long-distance travel and along roads where charging points are few and far between.
While range anxiety is a challenge in continental countries, in the context of Mauritius, range anxiety does not appear to be an issue.  Very rarely will a driver commute more than 140 km per day in Mauritius and an EV can typically travel way more on a single charge.  Already available in Mauritius is an MG-E ZS with a range of 325 km on one charge, Hyundai Kano Electric with 395 km, Porsche Taycan GTS with 450 km, or a Nissan Leaf with 235 km.

Charging Infrastructure

As in many countries, both public and private sectors are investing heavily in robust charging infrastructure which is an endeavor not visible in Mauritius.  Because of relatively low sales of EVs, establishing a profitable business case for charging stations is not viable at this point.
However, the near inexistent EV charging infrastructure in Mauritius is not an issue.  Because there is no long-distance traveling in Mauritius beyond a typical range, drivers can charge their EVs at home.  As the next steps, public-private partnerships can be forged to install charging stations in two main places: shopping malls to attract shoppers and private business parking as a means to retain employers and boost EV sales.  Home is more likely going to be the preferred charging spot, justifying minimum investment in charging stations.
 

Job creation and economic development

Conventional car manufacturers have the resources in terms of capital and production facilities to develop, design, build and launch fossil fuels-powered cars which makes barriers to entry into the automobile industry high.  However, EVs have fewer moving parts and do not require many components like fuel systems, catalytic converters, and transmission.  A manufacturing shift from complex engine systems to the assembly of standardized electric motors and battery packs is thus possible, creating opportunities for new entrants to the market for small-scale production of EVs – a new sector that Mauritius can explore.
Recognizing this advantage, there are few start-ups in Africa such as Ampersand in Rwanda and Roam in Kenya working in specific niches of electric mobility.
 

Issues with EVs adoption

There are two immediate anticipated issues with more EVs being deployed and it is uncertain at this point to what extent they are surmountable or what will it cost to overcome them.
EVs will increase electricity consumption and considering the day-to-day habits of users, most likely home charging of EVs will occur in the evening period during peak hours.  If the Central Electricity Board (CEB) does not invest in the necessary grid upgrades and increase capacity accordingly, this will threaten the stability of the power grid.
The second issue pertains to the fuel retail market – in simple terms, fuel stations.  More EVs on the road will reduce the profitability of current fuel stations, forcing many to lay off employees or close.  This also means that fuel stations have to either transform into EV charging stations or revisit their business model.

Conclusion

EV offers multiple opportunities for a better Mauritius in terms of environmental safeguards and global technological advancement.  Under current circumstances, it is just a matter of time, before the complete phase-out of conventional cars will be near, therefore actionable steps to transit to EV need to be amplified.  Research in the area of electric mobility has to be prioritized which local universities are already valuable stakeholders to contribute, new projects to raise awareness and information-sharing are required, and more impactful policies are needed to make EVs more competitive with conventional vehicles.
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If you have any comments, questions or want to have a conversation on this topic, please email Pravesh Raghoo on [email protected]

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