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Long-time rental of e-taxies in Paks
Published on 01 March 2021
Hungary
Dél-Dunántúl
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
Paks is the home of the only nuclear power plant in Hungary. Building on this image of clean energy, the intention of the Municipality is to develop an environmentally friendly transport system to attract more users over time, especially since the city is expected grow considerably due to the expansion of the power plant in the following years. Electric vehicles are inviting for passengers but come with a hefty price tag. To support local companies, Protheus Holding, a Municipality-owned company applied for funding and purchased three electric vehicles and leased them to taxi operators. National financial support accounted for 1,5 million HUF per vehicle.
Taxi operators pay a fee based on the fuel consumption of a conventional car (32 Ft/km including VAT) thus repaying the investment cost to the Holding over time as the operation of the electric vehicles is cheaper than cars with an internal combustion engine. The investment should have a very generous payback time of around 4-5 years based on an average yearly mileage of around 60,000 kilometres. The taxi operators are generally favourable of this scheme as service costs are less than before and the investment was paid in advance. The owner during this period is the Protheus Holding and they are only keepers of the car until a fixed 4 years or 200,000 km period, after that they will be offered to purchase the cars on a residual value. Based on the feedback from the operators they are most likely will take this opportunity.
Taxi operators pay a fee based on the fuel consumption of a conventional car (32 Ft/km including VAT) thus repaying the investment cost to the Holding over time as the operation of the electric vehicles is cheaper than cars with an internal combustion engine. The investment should have a very generous payback time of around 4-5 years based on an average yearly mileage of around 60,000 kilometres. The taxi operators are generally favourable of this scheme as service costs are less than before and the investment was paid in advance. The owner during this period is the Protheus Holding and they are only keepers of the car until a fixed 4 years or 200,000 km period, after that they will be offered to purchase the cars on a residual value. Based on the feedback from the operators they are most likely will take this opportunity.
Resources needed
Purchase price of electric car suitable for taxi: ca. 30,000 EUR. If the project owner has access to own renewable electricity sources to provide the operators with electricity, there are no further costs associated. Around 2 hours per week is needed to keep track of mileage of the taxies.
Evidence of success
This practice takes advantage of the positive image of electric cars, the fact that they are not emitting locally. CO2 emission should be decreased by ca. 4000 kg/CO2/year/car based on their mileage. The limitations of electric vehicles do not affect this specific use case. Taxi operators are satisfied with the vehicles and the scheme. The vehicles have a positive impact on the image of the taxi companies and the Municipality. The support for a quick technological change be considered a success.
Potential for learning or transfer
As this practice is quite simple and straightforward, after considering and analysing of the driving patterns of local companies, implementation is very easy and and uncomplicated. The requirements can be changed and the lender can also realize a fair profit, if relevant.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Protheus Holding Ltd.
Hungary
Dél-Dunántúl