BP, a foremost player in the energy sector, recently announced it would dwindle its electric vehicle (EV) charging division due to the slower-than-projected growth in commercial EV fleets. The company plans to slash jobs and retreat from eight countries, focusing instead on the US, Britain, Germany, and China, where it foresees noteworthy growth in EV tech.
The strategic move is viewed as a response to the dwindling market dynamics, majorly hit by the global COVID-19 pandemic. BP reasserted its unflinching commitment to the energy transition, saying it will concentrate on the largest and fastest germinating markets. The move includes withdrawing self-branded chargers and initiating partnerships with other players in the remaining markets.
BP’s CEO, Murray Auchincloss, is driving this reorganization to assuage investor fears about BP’s shift from traditional oil and gas to greener energy options. The reformation has resulted in a dramatic reduction in job positions, with over 100 job posts having been snuffed out from a global total of 900 employees.
Despite the cutbacks, BP claims this doesn’t symbolize a setback in its EV strategy.
BP adjusts EV division amid sluggish growth
The company had over 29,000 charging points by the close of last year, up from 22,000 in 2022, and aims to touch 100,000 by 2030. Insider sources affirm these adjustments are crucial to reach their targets for a more strategic execution of their plans.
Auchincloss attributes the need for strategy readjustment to an overestimation of the speed of commercial vehicle fleets transition to EVs. With regulations enforcement lax in several governments, the transition has been tardy. He highlights consumer vehicles to be the new priority, noticing quicker acceptance and desire for EVs from consumers over commercial buyers.
BP foresees a bright future in the EV industry. It expects a whopping $1.5 billion revenue from its convenience stores and EV charging services by 2025. In 2022, they took a confident stride by committing a €100 million investment by 2030 towards amplifying Germany’s EV charging infrastructure – marking BP’s unshakeable optimism about their future potential in the EV industry.
BP remains steadfast in its EV goals, striving to execute the transition precisely and effectively to cement its status as a principal figure in the green energy industry. They pledge to continue progressing with innovative solutions, advancing in low carbon technology, and offering an efficacious approach to combat climate change.
