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 Forecast:
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
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:
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.
In a market research report by TechSci Research, “Global Small Electric Vehicle Market by Battery Type (Nickel-Metal-Hydride & Lithium Ion), By Vehicle Type (Passenger Car, Light Commercial Vehicle), By Technology (PHEV, BEV), By Region, Competition, Forecast & Opportunities, 2025”, the global small electric vehicle market is anticipated to show a robust growth from its previous standing at 2.2 million units in 2020 and is anticipated to grow at a double-digit CAGR to reach 3.2 million units by 2026. The market growth can be attributed to the factors like rising awareness and governmental impose on clean energy, and thereby implied stricter emission norms. Moreover, the longer life span of the electric vehicles over the diesel run counterparts are one of the major reasons why the market is anticipated to be positively influenced. On account of increasing air pollution levels and inclination of consumers towards cleaner automobiles, global small electric vehicle market is projected to grow at a CAGR of 23.20%, in value terms, during 2016-2026. Growing affordability and rising need for automobiles are some of the prominent factors expected to drive the global small electric vehicle market during forecast period.
Electric Vehicle Market in India
In another market research report by TechSci Research, “India Electric Vehicle Market By Vehicle (Passenger Cars, Commercial Vehicles, Two- and Three-wheelers), By Vehicle Class (Mid-priced & Luxury), By Propulsion (BEV, PHEV & FCEV), By EV Sales (OEMs/Models), By End User (Shared mobility providers, Government organizations, Personal Users, Others), By Company, By Region, Forecast & Opportunities, FY2027”, the India electric vehicle market is anticipated to show a robust growth in the upcoming five years of forecast on the account of continuous technological advancements such that current infrastructure related to the market is improving along with the new inventions in the automotive industry. Moreover, growing greenhouse gas (GHG) emissions leading to increasing air pollution levels have portrayed the petroleum-based transport as a major concern at a global scale, as a fair number of fuels used in vehicles include gasoline and diesel. Owing to the harmful effects of GHG, policymakers are pondering upon an alternative low-emission vehicle the factor is also effective in the Indian market.