vehicle market grows with advent of mega cities
Electric vehicle (EV) manufacturers and dealers
will be pleased with the rising trend towards de-urbanization
polarization of vehicle sizes. By 2020, the emergence of mega
super cities in developing economies will affect personal mobility,
driving the demand for EVs.
New analysis from Frost & Sullivan, 360 Degree Perspective
of the Global Electric Vehicle Market – 2010 Edition, examines
the following markets: neighborhood EVs (NEVs), city EVs (CEVs),
extended-range EVs (eREVs) and high-performance EVs (HPEVs).
“Most offices that are expected to move to the first-belt suburbs
and city centers will encompass the shopping areas (small-scale
deliveries) and living areas for ‘double/single income, no kids’
households,” said Frost & Sullivan’s automotive and transportation
group team leader, Anjan Hemanth Kumar. “In mega cities, offices
and homes are likely to be adjacent to each other, creating a
favorable 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,” noted 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.