Automobile industry is one of the main root of economic growth in the world. The industry changing rapidly, more quickly than at any point in the past few years. Customers also expecting the vehicle quality, reliability, safety, and utility at an all-time high. Due to the demand, the automobile industries present new vehicle technologies. However, an alternate source of transportation fuel is electricity.
Electric vehicles (EVs) create economic development opportunities by improving quality of life, reducing energy, and decreasing dependence on oil. Hybrid Electric Vehicles (HEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Battery Electric Vehicles (BEVs), are three main types in EVs. These vehicles will play a major role in the future to achieve deep decarbonization of transportation systems around the world. Present plug-in cars can reuse one fifth of the energy through regenerative braking.
Electric car market growth in 2015-16 period
North America, Europe and Asia Pacific regions prefers the use of electric vehicles. Because of Well-developed and extensive charging infrastructure also incentives provided by the governments of these regions are expediting the growth of the electric vehicles. In contrast, Latin America and Middle East & Africa regions show a slower adoption of electric vehicles owing to the availability of flexible fuel.
The current electric car market growth looking good. The number of electric cars on the roads around the world rose to 2 million in 2016, following a year of strong growth in 2015. The U.S. electric vehicle sales are up 45% for the twelve-month period from July 2016 through June 2017. The US EV market saw 32% annual growth over 2012-2016. In 2016, EV sales at 160,000, a 37% increase. This rate would result in EVs essence 10% of all new car sales in 2025.
China also its lead in electric-vehicle production. According to new McKinsey research, Chinese Original Equipment Manufacturers (OEMs) produced 43% of EVs built worldwide in 2016. Now, the country has the largest fleet of EVs on the road, crosses the US market for the first time.
In comparison with sales, Europe increase of only 7% during the same period. The growth of the European market largely stems from a big drop in new registrations in the Netherlands, attributable to changes in the incentive scheme for plug-in hybrid vehicles.
In 2016, Chinese electric-car maker BYD sold the most electric cars, crossing out Tesla. BYD shipped 102,500 electric vehicles to its customers in China, while Tesla supplied 75,000 electric cars mostly in North America, Europe and China.
Tesla generated revenue of $6.35 billion from electric car sales. While BYD saw sales of $3.88 billion from its electric car division.
In 2016 Global Electric Vehicle Market was valued at $103,342 million, and is projected to reach $350,963 million by 2023, growing at a CAGR of 19.8% from 2017 to 2023.
2017 electric car market growth and revenue
In 2017, U.S. electric car sales increase of 30 % compared to the period of 2016. Around, 1,42, 000 plug-in vehicles delivered, among them 62 % being pure electric (BEV).
Americans bought more electric vehicles in September this year. According to Inside EV’s monthly sales report, 21,325 battery EVs and plug-in hybrid EVs found homes last month. That’s 20 percent more than this time last year and the second highest number ever. In 2017 a total of 1,59,614 EVs sold. The Tesla Model S and Chevy Volt having a battle for best-selling plug-in this year.
While, China sales record number of electric cars in August 2017. Electric car market share in China currently at 1.8%. Current subsidies in China reduced by 20% in 2017. However, China’s Zero Emission Vehicle (ZEV)) credit system announced on September 28, and will begin in 2019 with 10% of credits required from new energy vehicles (NEVs).
Coming to Europe, the country performed very well with over 22,000 electric cars sold in August 2017. Europe electric car market share is currently at 1.7%. Meanwhile electric cars in Norway maintaining their incredible 35% market share of new sales. EV market share in Sweden is at 4.6% and in Switzerland above 2%.
How We Treat Electric Car Market Growth Rate?
With all good technologies, there comes a time when buying the alternative no longer makes sense. According to a new analysis of the electric-vehicle market,
Battery prices fell 35 percent last year and are on a trajectory to make unsubsidized electric vehicles as affordable as their gasoline counterparts in the next six years. That will be the start of a real mass-market liftoff for electric cars. It’s looking like the 2020s will be the decade of the electric car.
Automobile industry estimates long-range electric cars will cost less than $22,000 by the end of 2040. Currently, 35% of new cars worldwide will have a plug, and growth of Plug-in cars is just one-tenth of 1 percent in the global car market.
For EVs to achieve widespread adoption, governments will have to launch strong incentive programmed that will bring down car prices and spur consumer adoption of the technology.
This is a huge levee to make EVs more attractive, especially among younger first-time car buyers. Other countries reducing or phasing out subsidies include Denmark, France, Portugal, and Norway.
More information: [McKinsey research]