Title: Electric Vehicles Speeding Toward 7% Of All Global Sales By 2020
Headings: Electric Vehicles Speeding Toward 7% Of All Global Sales By 2020
Cars
Electric Vehicles Speeding Toward 7% Of All Global Sales By 2020
Different Electric Vehicles, Similar Economic Outlooks
Better Prices And Government Policy Drive Consumer Demand
Cleaner Cars = Green Growth Across America
Written By Silvio Marcacci
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Content: Under Navigant’s outlook, HEVs will grow at a compound annual growth rate (CAGR) of 11.5%, while PHEVs will sell at a 31.9% CAGR, and BEVs increase at a 31.5% CAGR over the next seven years. Better Prices And Government Policy Drive Consumer Demand
So what’s powering this surge? “ Electric vehicles, including plug-in models, are becoming an increasingly important part of the global automotive market,” said Navigant’s Dave Hurst. “ Growth is being driven not only by the inherent appeal of the vehicles, but also by consumer demand.” As always, favorable economics are the prime ingredient for market expansion. Gasoline prices are projected to increase at a 7.2% CAGR between 2013 and 2020, while HEV and PHEV battery pack prices are expected to decrease 10% and 26% respectively by 2020 as advanced research unlocks battery innovations. Considering battery packs can represent up to half of EV prices, while the cost to recharge a car with electricity is a fraction of the cost compared to refueling with gasoline, it’s clear why Navigant sees lower EV operational costs as such a major market driver. But beyond better economics, electric-powered vehicles are becoming much more mainstream with more options available to consumers. From established models like the Chevy Volt, Nissan Leaf, and Tesla Model S to new options like the Chevy Spark EV and hybrids from most major automakers, EVs are available in almost every price and performance range. Navigant also credits steady government policy support for the rise in EV fortunes, expecting currently available tax incentives worldwide to remain steady and provide financial support for consumers, while stricter fuel economy and emissions regulations encourage automakers to continue expanding low-carbon options.