Product
Overview:
The
automotive industry is changing rapidly, substantially more rapidly than
anytime over the most recent 20 years. There's a shift towards green developments
and expanded mileage driven by both regulations and consumer demand. Over the
next 5 to 10 years, every car on sale will offer fully electric, plug-in or
hybrid variant as the adoption rate of these vehicles and technology is
increasing intensely.
Electric
vehicles are cleaner than oil energized vehicles and are viewed as a promising
answer for an unnatural weather change. Electric vehicle uses one or more
electric motors for momentum. The major types of EV’s are Battery Electric
Vehicle (BEV’s), Plug-In Hybrid Electric Vehicle (PHEV’s), Hybrid Electric
Vehicles (HEV’s) and Fuel Cell Vehicles
Small
Electric Vehicle Manufacturers:
Global
Small Electric Vehicle Market overview:
Small
EV’s includes passenger cars (Hatchback) and Light commercial vehicles. Among these
electric vehicles hatchback segment of passenger car holds the largest share in
Global Small Electric Vehicle market. In 2016, small electric vehicles
registration recorded sales of around 4,00,000 vehicles globally.
China
holds the largest share in small electric vehicle market in 2016. Small
Electric Vehicle sales in China were more than double the volume in the United
States. In 2016, In Europe, most of the small electric vehicles sold were
registered in six countries: Norway, Germany, the Netherlands, the United
Kingdom, France and Sweden.
Globally,
90% of the small electric vehicles sales are taking place in country like
China, United States, Canada, Japan, Norway, Germany, the Netherlands, the
United Kingdom, France and Sweden.
Electric
vehicles make up more than 1% of the fleet in seven countries, including China.
Norway had the highest share of electric cars, at 23%, followed by the Netherlands, at 10%. The other countries are
Sweden, Denmark, France, China and the United Kingdom. A decline in sales
pulled the U.S. EV market share down to 0.7%.
Global Small Electric Vehicles Sales by Drivetrain, 2012-2022
Global
Small Electric Vehicle Market stood at 4.08 Million Units in 2016, and is expected
to grow at a CAGR of over 8%, in volume terms, to reach 6.54 Million units by
2022.
Global Small Electric Vehicles Forecast:
Source: IEA
Rolling
investment in lithium-ion batteries, increasing manufacturing capacity of OEM’s
globally and rising consumer demand for electric vehicles is expected to boost
the demand of small electric vehicles.
What drives the Small Electric Vehicle Market?
Government incentives :
- China: The country provides strong financial and non-financial incentives
for the adoption of Electric Vehicles as the country owns the largest CO2
emission in the world. According to International Energy Agency (IEA), China
exempts electric cars from acquisition and excise taxes worth $6000 to $
10,000per car. The government of China also said that it will deploy 1,00,000
public charging stations in 2017 alone.
- United
States: The American Recovery and Reinvestment
Act of 2009 established tax credits for purchasing electric vehicles (between
$2,500 and $7,500 per vehicle, depending on the battery capacity) and
conversion kits to retrofit conventionally powered vehicles with electric
vehicle capability ($4,000 per vehicle, maximum)
- The Netherlands:
EVs are exempt from road tax. Since mid-2006,
to encourage the sales of hybrid vehicles have qualified for a substantial
bonus/registration tax reduction. The bonus is dependent on the energy
efficiency label of the car which reflects the fuel economy of the car (i.e.,
for the highest fuel-economy label A: €5,000; label B: €2,500).
- United
Kingdom: The UK Government has created a
subsidy program called the Plug-In Car Grant to empower the purchase of
ultra-low carbon vehicles. Under the program, qualifying ultra-low emission
cars will receive a grant of 25% toward the cost of the vehicle up to a maximum
of £5,000.
- India: Government of India has implemented FAME India Scheme [Faster
Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India], with
the objective to backing hybrid/electric vehicles market development. The
scheme has 4 focus areas i.e. Technology development, Demand Creation, Pilot
Projects and Charging Infrastructure.
Globally,
governments’ policy support is the main driver of electric vehicle sales
success.
Average Price of Battery is Declining: The average battery pack price is price go down from about $1,000/kWh
to roughly $227/kWh since 2010.
Source: Tesla Company
Profile
Rising Infrastructure for Electric Vehicles:
In addition to
electric car sales, infrastructure for EVs also rose abruptly, in 2016,
Electric vehicle charging outlets surpassed 2 Million. The charging outlets in
thousands in given below:
Source: IEA
Conclusion: The Global Small Electric Vehicles market is expected to
grow at a CAGR of over 8% backed by the support from different government and
regulatory institution mandate, coupled with growing concern over pollution and
declining battery pack prices globally. Moreover, maturing charging infrastructure,
cost reduction of electric vehicles, increased model choice and energy
efficient benefits provided by small electric vehicles expected to drive the
Small Electric Vehicle market over the next five years.
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