Battery-powered cars to flourish: Bosch

According to one of the world's top auto parts suppliers, electric vehicle batteries will finally begin to rival petrol vehicles in terms of range as they deliver "double the power at half the cost by 2020".

In turn, the technological advancements Lithium-ion batteries are expected to undertake will give rise to more electric and hybrid vehicles from mainstream car makers claims Bosch.

The company's chairman, Dr Volkmar Denner (pictured), says "By 2020 batteries will deliver twice as much energy density for half the present cost."
"Moreover, falling battery prices will make hybrids considerably more affordable," he said at the 2015 Car Symposium in Bochum, Germany.

"With electric support, the combustion engines of the future will consume significantly less fuel and be even cleaner. And the additional torque from the electric motor will add new levels of driving enjoyment."

The company is embarking on a new strategy to become more than just a parts supplier, and therefore it sees value in spruiking electrification.
Bosch reckons on "roughly 15 per cent of all new cars built worldwide to have at least a hybrid powertrain" by 2025, as battery prices make the technology more accessible.

Despite dramatically lower oil prices, Denner says that that electric vehicle development is "picking up pace". This is because no matter how low fuel prices drop, electrification is a necessity for global car makers because emissions regulations are continuing to force the reduction of vehicular CO2 output.

The German-based parts supplier says battery recharging will also be a crucial factor in increasing the appeal of electric and hybrid vehicles and that it will be a key player in connecting vehicles and chargers.

The multi-billion dollar company's software arm, Bosch Software Innovations, has already developed an app that makes it "significantly easier to reserve the charge spots of different providers and pay for the electricity".

The company is pitching itself as the middle-man between motorists and charging solutions as the technology becomes more widespread, particularly in the US and Europe, with its app already capable of using a PayPal account for electricity/energy transactions.

Bosch says it "no longer sees itself solely as a supplier of automotive components" and will actively begin promoting its "expertise" in a troika of mobility domains: automation, electrification and connectivity, while delivering 'integrated mobility solutions' to motorists.

One of the touch points of Denner's speech from Germany was that the architecture and construction of buildings must evolve to accommodate a future where electric cars are the norm, and offer suitable charging solutions as such.

Despite Australia lagging behind other mature global markets in terms of electric and hybrid vehicle uptake, primarily due to a lack of infrastructure and government incentives, Bosch Australia President Gavin Smith said he thinks the Aussie market will mirror others, arguing that up to 15 per cent of new-car sales in Australia will be hybrids by 2025.

"We expect annual sales of hybrid and electric vehicles will become significant in Australia from 2020," said Smith.

"With this outlook, it is becoming increasingly important for Australia to ensure that new buildings are designed and constructed so that they are better able to cater for the re-charging needs of these vehicles in the future, without the need for major works, as is already the case in many overseas countries," said Smith.

What are your thoughts on electric and plug-in hybrid vehicles in the Australian market – will they grow significantly of their own volition in the next five years or do there need to be major incentives such as tax breaks to kick start the revolution here?