Governments and automobile manufacturers are shifting to selling newer, cleaner electric vehicles, which are expected to account for one-quarter of new sales by 2035. Global electric vehicle sales reached 6.75 million units in 2021. Providing a boost to electric mobility is intended to cut down carbon emissions that contribute to greenhouse gases. Electric Vehicles are environment-friendly and safer, which has led to their rapid popularity and adoption in recent years. Continuous development in battery technologies and cheaper production costs have resulted in the emergence of affordable EV models. Besides, owners can save a lot on operating expenses since EV consumes 60% less fuel compared to internal combustible engines. Favorable government policies and subsidies, along with rapidly expanding electric vehicle charging infrastructure, are also encouraging buyers to opt for electric vehicles, supporting their market growth.
Expansion of EV models
Battery electric vehicles and plug-in hybrids make up more than half of the options among available models in new car showrooms in the US. By next year, the number of all-electric vehicles is expected to quadruple, from 13 to 50. Key market players in the electric vehicle market such as Tesla, Volkswagen, Hyundai, BMW, and General Motors are releasing new models in all segments, such as all-electric pickups, SUVs, luxury, and sports cars. Other EV makers are ramping up their strategies and making huge investments to improve their battery technologies to keep up with new regulations and remain competitive. Ford has planned to roll out four new commercial EVs three-passenger electric vehicles by 2024. Japanese automotive giant, Honda has planned to launch 30 new electric vehicle models worldwide by 2030 and invest USD63.9 billion in R&D initiatives.
Commercial Players Big on EVs | TechSci Research
Commercial buyers are more focused on operating costs compared to retail customers. Switching to battery power would give a clear advantage to business buyers as they cost about half as much to keep in motion. High daily vehicle utilization and a large scale of operations make players in the e-commerce business ideal for commercial electric vehicles, which is projected to expand the commercial EV market size during the forecast period. Some businesses are recognizing EVs as a cost improvement measure, improve customer satisfaction, and meet regulatory compliances. Amazon, Flipkart, Uber, Zomato, and Swiggy have already set out their EV targets for 2025 and 2030 to boost electrification in their fleet. Witnessing the growing adoption of EVs by big businesses, auto manufacturers are building electric vehicles, from garbage trucks to semis.
Plug-in Hybrid Remains the Most Preferred Choice for Buyers
Although pure electric cars are popular, the gasoline-electric hybrid models have been gaining much traction in recent years. Asia auto manufacturers are boosting hybrid vehicle line-ups as many customers are shunning EVs due to high prices and limited driving range. Hybrids offer a mix of fuel economy and performance, combining a combustion engine with an electric propulsion system. In 2021, the hybrid vehicle sales jumped 76% to 801,550 units in the United States. Toyota recorded the highest hybrid car sales in the US market, which made the Japanese automaker overtake General Motors, the top-selling automaker in the country. In the coming years, hybrid EVs are expected to register the fastest growth, owing to the rising number of hybrid EV models and the increasing inclination of buyers towards purchasing gasoline hybrids.
According to TechSci Research report on “Electric Vehicle Shared Mobility Market – Global Industry Size, Share, Trends, Opportunity and Forecast, 2017-2027, Segmented By Service Type (Ride-Hailing, Car Sharing, Car Rental and Ride Sharing), By Vehicle Type (Two-Wheeler and Four-Wheeler), By Commuting Pattern (Daily, Weekly and Occasionally) and By Region”, the global electric vehicle shared mobility market is expected to grow at a steady rate. The market growth can be attributed to the rising demand for urban mobility, increase in internet accessibility, and continuous digital revolution.