By 2020, the emergence of mega super cities in developing economies will affect personal mobility, driving the demand for EVs, according to new a new report analysis from Frost & Sullivan, 360 Degree Perspective of the Global Electric Vehicle Market - 2010 Edition.
The study is an update to an existing study which gave an overview of the EV market, indicate the development in infrastructure, business models, initiatives and consumer research. Further, this study also focuses on key trends such as mega cities, urbanization, mobility trends and car sharing. Study also provides an update to the existing sales forecasts for electric vehicles and also has similar forecasts for electric two wheelers and electric commercial vehicles.
"Most offices that are expected to move to the first-belt suburbs and city centres will encompass the shopping areas (small-scale deliveries) and living areas for 'double/single income, no kids' households," says Frost & Sullivan's Automotive & Transportation Group Team Leader, Anjan Hemanth Kumar. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favourable environment for EV deployment."
Rising concerns over greenhouse gases and depleting fossil fuel sources are further solidifying the case for EVs. Car manufacturers are working on business models that will make available the car and energy under the same roof, opening up a plethora of opportunities for utilities, suppliers and finance businesses.
Manufacturers are building sleek and sporty EVs to create interest among customers who would be early adopters. Giving an EV distance capability of more than 100 miles (160km) and enhancing the range and safety of batteries are the key focus areas of development for EV manufacturers. However, the prices of the initial EVs are likely to be prohibitive.
To counter this cost challenge, federal and local governments have passed a series of legislation, benefits and rebates to help manufacturers offer their vehicles at affordable prices.
"With the advent of lithium ion battery technology and innovative financial models, the automotive industry is all set to witness a revolutionary business case," notes Kumar. "Original equipment manufacturers (OEMs) have little choice but to join in the drive to address the energy crisis issue."
Associations and close participation among OEMs, battery manufacturers and energy utilities will accelerate the introduction of EVs. Market participants could also collaborate with environmental advocates and lobby for benefits.