The rise of electric vehicles (EV)1 means long-established automotive players are experiencing profound and prolonged challenges such as new technologies and products, new competitors like Tesla Motors and Google, and the rise of fuel-efficiency regulations.
Despite the current low oil price, global EV sales figures have been growing rapidly: from 36,000 units sold in 2011 to more than 270,000 four years later. However, the market share of EVs as a percentage of the global automotive market in 2015 was only 0.3 percent. An increase to just 3 percent would equate to 2.7 million EVs.
This potential for EV uptake, however, varies greatly across domestic markets.
World Forecast 2010-2020: Electric Vehicle Market Forecast Scenario
Latin America EV Market Insights
- The Inter-American Development Bank is one of the main institutions that guides and funds Latin American progress. In 2010, the company stated that nearly 20,000 electric cars were sold worldwide.
- In the end of 2014, said figures exceeded 700,000 and by June 2017, gross sales surpassed the 2 million mark. Nearly half of the demand comes from the United States, a quarter from Japan, and the remaining amount belongs to China and the rest of the world.
- The South American countries that lead the implementation of electric vehicles are Argentina, Brazil, Chile, Colombia, Mexico, and Peru, which are expected to be selling between 52,000 – 220,000 units per year by 2023.
- Electric cars possess an advantage over gasoline fuelled vehicles as both maintenance and fuel is cheaper. Although acquisition prices are seemingly higher for electric cars, in the long run, it remains the better deal. The benefits of charging with electricity represent a 98% discount in Argentina, 90% in Paraguay, and 70% in Brazil, Colombia, and Ecuador.
Indian EV Market Insights
- India has this year (2017) set a target of 100 percent electric vehicles by 2030, and clearly also has in sight the self-manufacturing and opportunity to reduced oil imports that this requires. So, with the three largest nations globally (China, India and the U.S.), all embracing this transformation, the convergence of technology innovation and battery storage plus deflationary economies of scale are combining to change all aspects of global energy markets.
- The overall electric vehicle market for storage in India is likely to be 4.7 GW in 2022. Over 50% of the market in 2022 will be driven by e-rickshaw batteries. 200 charging stations are proposed to be set up in Delhi, Jaipur & Chandigarh. Delhi government launched a subsidy scheme of INR 30,000 for the E-Rickshaws in 2016. Government is targeting of 6-7 Million electric and hybrid vehicles on road by 2020. Smart charging company, new motion announced to invest INR 1000 crore in India on charging infra development.
- Some of the global automotive players like Tesla Inc. and Toyota Motor Corp. have shown interest in the Indian EV market. Nissan also plans to bring its best- selling electric vehicle Leaf to India. Suzuki Motor Corp. announced that it would form a joint venture with Denso Corp. and Toshiba Corp. to produce lithium-ion batteries for EVs in India with an initial capital expenditure of USD 184 million. Large Indian corporates like BHEL, PGCIL and Vedanta Group have shown interest in making EVs, setting up charging stations and developing storage solutions respectively.