New analysis from Frost & Sullivan (http://www.automotive.frost.com), 360 Degree Perspective of the Global Electric Vehicle Market – 2010 Edition, examines the following markets: neighbourhood electric vehicles (NEVs), city electric cars (CEVs), extended-range electric vehicles (eREVs) and high-performance electric vehicles (HPEVs).
"Most offices that are expected to move to the first-belt suburbs and city centres will encompass the shopping areas (small-scale deliveries) and living areas for ‘double/single income, no kids’ households," says Frost & Sullivan’s Automotive & Transportation Group Team Leader, Anjan Hemanth Kumar. "In mega cities, offices and homes are likely to be adjacent to each other, creating a favourable environment for electric car deployment."
Rising concerns over greenhouse gases and depleting fossil fuel sources are further solidifying the case for electric vehicles. 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 electric vehicles 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 electric car manufacturers. However, the prices of the initial electric vehicles 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," notes Kumar. "Original equipment manufacturers (OEMs) have little choice but to join in the drive to address the energy crisis issue."