The Strategist

Global Electric Vehicles Market – Picks up Momentum


04/06/2015 - 20:07



Major automakers are outing efforts to pace up with Tesla thereby setting new standards.



Global Electric Vehicles Market – Picks up Momentum
The International Electric vehicles market reached the heights of 740,000 cars. According to Centre for Solar Energy and Hydrogen Research, the year 2014 was marked by new registration of about 320,000 electric cars worldwide. This quick growth was spearheaded by electric car market majors including Nissan’s Leaf, Model S by Tesla, Honda Fit and Mitsubishi’s Outlander Plug-In electric vehicles that dominated the market during 2014.
 
Nissan’s Leaf is the best seller electric vehicle in the worldwide automobile industry. The Japanese carmaker sold nearly 165,000 small passenger cars by March 2015 since its launch in 2010. The batteries of this car are highly reliable. Mitsubishi’s outlander PHEV is the second best while Tesla Model S the third best-selling electric cars. However, the Outlander is not yet available in the US market.
 
The world carmakers are getting prepared for manufacturing a series of new generation electric cars. These cars will have almost two times of the driving range to that of Nissan’s Leaf. With use of big batteries from LG Chem Ltd, the car makers are expecting a technical breakthrough that will bring them at par with Tesla Motors Inc.

Major car makers like General Motors, Ford Motor, Nissan Motor and Volkswagen are fully geared up to compete with Tesla, which was the first company to launch a reasonably priced electric car that can travel up to 322 km with a single charge. However, it is almost double the price of Nissan’s Leaf that starts at $29,010. The new series of electric cars are likely to be on the road in next 2-3 years.
Since the year 2011, the number of electric vehicles have mounted swiftly. The vital contributors for this explosive growth in electric vehicles market are the government incentives and the adoption of anti-pollution policies across the world. When the electric cars were first launched in the market, there was fear in the mind of consumers. The difference between an electric car and a diesel car is petty evident. Most importantly, when we take into account the overall running costs of an electric car, the most crucial factor is the saving on fuel that makes it competitively more better than the traditional models.
 
Norway has the largest market share foe electric cars, followed by Netherlands. In terms of numbers of vehicles, the US is leading but has not even 1% of market share. China, third biggest electric car market recorded a significant growth of 120% with about 100,000 electric cars on the roads in 2014. Despite, Germany being popular for its progressive policies for renewable energy, has adopted conservative tax incentives in comparison to other European nations.

However, the electric cars are relatively more expensive than combustion engines, mainly due to huge battery costs. But now, the costs of battery packs are steeply declining. The electric vehicle is a very small part of gigantic automotive market, but the sharp growth has gained attention.