BTN News: The rise of electric mobility in the Dominican Republic is becoming increasingly visible, especially in the bustling streets of major cities where electric vehicles (EVs) and charging stations are more commonly spotted. However, despite this growing presence, the path to widespread adoption of electric vehicles in the country faces significant hurdles. The Dominican Republic, like many other nations, has set ambitious targets for the transition to electric mobility. Still, the reality of reaching these goals by the outlined deadlines is proving to be a formidable challenge. The government’s National Strategic Plan for Electric Mobility sets forth bold aspirations, aiming for over 600,000 electric vehicles on the roads by 2030, yet current figures reveal a considerable gap between ambition and achievement.
As of the end of 2023, the Dominican Republic had only around 17,542 electric vehicles, far short of the targets set out for 2030. This shortfall highlights the considerable obstacles that need to be overcome. Experts point to two primary barriers: a lack of public awareness and the high cost of entry into the electric vehicle market. These factors contribute significantly to the slower-than-expected growth in electric vehicle adoption, despite the evident environmental and economic benefits.
Edwin MartÃnez, president of the Dominican Association of Electric Mobility (Asomoedo), emphasizes that beyond the necessary state-level improvements to support the growth of sustainable mobility, the most significant challenge lies in consumer decision-making. He suggests that the benefits and advantages of electric vehicles are numerous, yet the general public remains largely uninformed or unconvinced about making the switch from traditional combustion engines to electric alternatives. This lack of information, according to MartÃnez, is a significant roadblock to the broader adoption of electric vehicles in the country.
The financial aspect is another critical factor impeding the widespread adoption of electric vehicles. Oscar San MartÃn, general manager of Evergo Holdings, a transportation company, notes that despite the introduction of more affordable and competitive electric vehicle brands into the market, the prices of the most reliable and well-known models remain significantly higher than their combustion engine counterparts. This price disparity continues to be a barrier for many potential buyers, even with the incentives provided by the government.
The Dominican government has made efforts to reduce the financial burden on consumers through legislation like Law 103-13, which offers a 50% reduction in import taxes and a waiver on the first license plate for electric vehicles. However, additional sales taxes and other associated costs remain high, limiting the actual benefits for consumers. For instance, a new 2017 electric sedan with four cylinders and a top speed of 178 kilometers per hour costs approximately 1,008,900 pesos, whereas a similar combustion engine vehicle is priced around 745,000 pesos. This significant price difference persists across various vehicle types and models, making electric vehicles a more challenging option for many consumers.
The financial comparison becomes even starker when considering larger vehicles. A 2024 electric SUV with dual motors, 230 horsepower, and a range of 440 kilometers per hour, is priced around 4,012,000 pesos, while a comparable combustion engine SUV from the same brand costs about 3,121,100 pesos. Similarly, a 2017 electric hatchback with a 650 cubic centimeter motor can set a buyer back 1,534,000 pesos, compared to a subcompact SUV from the same year and manufacturer, which costs approximately 630,000 pesos. These price disparities underline the financial challenge that consumers face when considering the switch to electric vehicles.
The National Strategic Plan for Electric Mobility outlines several goals aimed at reducing the country’s dependence on combustion vehicles. These objectives are divided into two critical phases, with targets set for 2030 and 2050. By 2030, the plan aims for 30% of the official vehicle fleet—comprising automobiles, trucks, and motorcycles—to be electric. This translates to the incorporation of 60,000 four-wheeled vehicles and 145,000 electric motorcycles within the public sector. Additionally, the plan seeks to ensure that 10% of the private vehicle fleet consists of electric vehicles, which would require the integration of 180,000 units. Further goals include having 5% of the national motorcycle fleet (about 167,000 units) and 30% of public buses (approximately 37,000 units) powered by electricity.
To support this transition, the plan calls for the creation of a robust charging infrastructure, with 14,000 charging stations to be distributed across the country by 2030. Looking ahead to 2050, the plan envisions a fully electric official vehicle fleet and a 70% electric vehicle penetration in the private sector, totaling around 2.5 million vehicles. Additionally, the goal is for 35% of motorcycles—equating to approximately 2.5 million units—to be electric, alongside a fully electric public transportation bus fleet, comprising 208,000 units. To sustain this vast electric vehicle fleet, the charging infrastructure would need to expand significantly to reach 150,000 stations by 2050.
Despite the high upfront costs, research indicates that investing in electric vehicles is more cost-effective over time. A study from the University of Michigan titled “Total Cost of Ownership of Electric Vehicles and Gasoline Vehicles in U.S. Cities” reveals that while electric vehicles have a higher initial purchase price, they are more economical in the long run compared to gasoline-powered vehicles. The study found that electric vehicles are more competitive in most cases, with operating costs reduced by as much as $26,000 over their lifetime.
Asomoedo believes that increasing public awareness and educating consumers about the long-term benefits of electric mobility are crucial steps toward overcoming existing biases and fears associated with electric vehicles. Both San MartÃn and MartÃnez agree that the future of electric mobility in the Dominican Republic is promising. They highlight the importance of expanding charging infrastructure and fostering collaboration between the public and private sectors to drive innovation and enhance market competitiveness.
In summary, while the Dominican Republic has made strides in promoting electric mobility, significant challenges remain. The country must continue to educate its citizens, reduce financial barriers, and expand its charging infrastructure to achieve its ambitious electric vehicle goals by 2030 and beyond. With concerted efforts from all stakeholders, the vision of a sustainable, electric-powered future could become a reality.
