According to a recent report from Navigant Research, worldwide sales of light-duty hybrid and plug-in electric vehicles (EVs) will reach 6.6 million units annually in 2020, representing almost 7% of the total light-duty vehicle market.
‘Electric vehicles, including plug-in models, are becoming an increasingly important part of the global automotive market,’ says Dave Hurst, principal research analyst with Navigant Research. ‘This growth is being driven not only by the inherent appeal of the vehicles, but also by consumer demand for vehicles that cost less to operate than traditional internal combustion engine vehicles, government incentives and a rebounding economic climate.’
Navigant notes that falling prices are also driving demand for EVs. The cost of battery packs, which can account for as much as half of plug-in EV costs, will continue to decrease significantly during the forecast period, according to the report. Hybrids and plug-in hybrod EVs are anticipated to see a 10% and 26% decline in battery pack costs by 2020, respectively, while all-battery EVs will likely remain flat but see improvements in vehicle range and performance during the same period.
Navigant's report, ‘Electric Vehicle Market Forecasts,’ also points out that major automakers – including Honda, Volkswagen and Hyundai – will be launching new EVs in a large number of countries over the next two years.
Click HERE for more information about the study.
