According to Marketsandmarkets report, global electric vehicle sales are projected to grow at a CAGR of 32.57 per cent from 1.50 million units in 2018 to 2025, to reach 10.79 million units by 2025.
The major factors behind the growth of electric vehicle sales are government support in the form of grants, subsidies, and tax rebates, increasing environmental consumer awareness, improving charging infrastructure and increasing vehicle range.
Electric passenger car segment: Expected to dominate the EV market
Technological advancements and increasing focus on research and development activities by leading OEMs to launch affordable and premium quality electric passenger cars. The models in the electric passenger car segment such as the Tesla model S, Nissan Leaf, BYD Tang, and Mitsubishi Outlander are some of the top selling electric passenger cars in 2016. Availability of subsidies and tax rebates, features such as increasing vehicle range and improved charging infrastructure, reduction in charging time, and the decreasing price or EVs are the major factors driving the global EV market.
BEVs: Expected to dominate the EV market
In 2018, the sales of electric vehicles comprise of BEV and PHEV cross 2 million units mark. Refillable batteries can fuel the market for electric vehicles market. It can be refuelled in minutes at a huge network of converted gas stations. Governments prefer BEVs as these are zero emission vehicles. Various governments around the world support the sales of BEVs with subsidies and tax rebates. BEVs are also the most preferred vehicles in China in 2017. It is expected that the continuously improving charging infrastructure, reducing charging time and existing government support would help the make the BEV segment to dominate the other EV propulsion systems such as PHEVs and FCEVs.
Asia Pacific: Largest market for EVs
The Asia Pacific region is the largest market for EVs due to government support in the form of grants, subsidies and tax rebates and continuously improving charging infrastructure in countries such as Japan and China. The governments in both the major markets i.e. Japan and China provide subsidies and other non-financial benefits such as access to number plate, car pool lane access, and road tax exemptions for EV users. Continuously improving charging infrastructure and increasing vehicle range are the major factors which have contributed to the Asia-Pacific to be the fastest growing market. Additionally, the alarming pollution level in economies such as Japan and China have fuelled the demand for zero emission vehicles in such countries thus, creating huge demand for EVs in such countries. Additionally, in 2018, the sales of electric vehicles comprise of BEV and PHEV in China cross 2 million units mark. Further, the Volkswagen Group sells about 4,000,000 vehicles in China and requires 400,000 NEV credits in 2019.
The major market players in the global electric vehicle market are Tesla (US), Nissan Motor Corporation (Japan), BYD (China), and BMW (Germany), and Volkswagen (Germany).