The Joule electric car, created by local company Optimal Energy, will use the 2010 Fifa Soccer World Cup as a showcase event to gain visibility and garner international interest.
“We are currently producing a fleet of cars at Hi-Tech Automotive in Port Elizabeth,” says Optimal Energy CEO Kobus Meiring. “This will be a marketing fleet and will be used mainly to ensure high visibility during the 2010 World Cup.
“Although we are not involved in Fifa activities, we are able to make use of effective media, and, of course, introduce Joule to South Africans and the diverse groups of foreigners that will be visiting SA at the time.”
Meiring adds that the fleet will be used to bridge the gap to series production. The company is set to start production toward the end of 2012, with plans to ramp up rapidly to 50 000 cars a year, according to Meiring. Around 5% to 10% of these will go to the local market, with the rest earmarked for the UK and EU.
He notes that the Eastern Cape is the preferred site for the manufacturing plant, and the exact location will be finalised this quarter. According to Meiring, production of the Joule will create more than 10 000 jobs, including about 2 000 at Optimal Energy, and more than 8 000 in the directly related industry. Many more will be created indirectly, he says.
Gearing up
Optimal Energy plans to introduce the Joule at the International Motor Show, in Geneva, in March, to create international awareness, as well as increase its local profile. “We plan to start building the factory and negotiate long-term contracts with all major suppliers,” adds Meiring.
He says funding will be an important focus this year. “2010 will be a major capital-raising year, and one of the challenges will be to ensure the company stays majority owned by South Africans, as there is very strong interest from abroad.”
Meiring notes that the Industrial Development Corporation has made a significant investment, and will probably be one of the key shareholders going forward.
The Department of Science and Technology (DST), through the Innovation Fund, has previously given R50 million in funding towards the Joule's roll-out. “The DST Innovation Fund's role will probably migrate to the DTI [Department of Trade and Industry] over the next few years, as the company moves from development to production,” says Meiring.
Electric future
A zero-emissions vehicle, the Joule uses lithium-ion batteries to power the car. According to Optimal Energy, the Joule's maximum speed is 135kmph, accelerating from 0kmph to 60kmph in less than five seconds. It takes around seven hours to charge the battery pack for a range of 300km, using a normal 220V home outlet.
The batteries will have to be leased separately, however, and are not included in the purchase price.
While Optimal Energy says the Joule's price cannot be fixed now, it adds that in current terms it should sell for around R235 000 to R275 000 in SA, and 25 000 euros to 29 000 euros in Europe.
Meiring dismisses concerns that the imminent electricity price hikes will affect the affordability of the Joule. “We believe the electricity price hike is long overdue, and that more realistic electricity prices will kick-start the renewable energy industry and clean power generation in SA.
“An electric vehicle is so energy-efficient that it will always be substantially cheaper to drive electrically than with petrol or diesel, so the price hike has negligible effect on electric vehicle buyers.”
He adds that the company foresees an exponential increase in electric car market share over the next few decades. “This massive and fast-growing market creates the opportunity for newcomers with attractive and competitive products to enter an arena that has been dominated by a few giants for nearly a century.”
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