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Report: EVs Will Make Up Half of Luxury Car Market by 2020
December 24, 2015
Luxury vehicle manufacturers today make up about 23 percent of the plug-in electric vehicle (EV) market, and this is expected to climb to about 50 percent by the early 2020s, according to a new report from Navigant Research.
The report, Electric Vehicle Market Forecasts, provides forecasts, market sizing, and market share analysis for the overall light duty vehicle (LDV) market and light duty HEVs, PHEVs, and BEVs. Global forecasts for annual LDV sales and vehicles in use, segmented by scenario (conservative, base, and aggressive), region, country, drivetrain, and automaker, extend through 2024. It also provides forecasts by automaker and vehicle class (luxury vs. economy), along with discussion of the underlying forecast assumptions such as lithium ion (Li-ion) energy density, Li-ion battery prices, and retail fuel prices.
The EV market has become well-established in North America, Europe, and in the developed parts of Asia Pacific, largely due to government support and purchase incentives, automakers are focusing on offerings that will attract a wider range of customers, the report says. Meanwhile, companies within the electric power sector of global markets are also determining how they can best take part in encouraging EV market growth.
“The end of 2015 marks the completion of the fifth full year of EV sales to key markets for major automakers,” Scott Shepard, research analyst with Navigant Research, said in a statement. “The market for electric vehicles has changed significantly over this time period, but the expected changes during the next five years will be even more impactful to the global automotive and energy industries.”
Tesla Motors, the brand many people think of when they think about luxury EVs, recently smashed Consumer Reports’ rating system with its Model S, the P85D. At the Consumer Reports test track in East Haddam, Connecticut, the car initially earned a raw 103-point score in the 100-point-based rating system. Consumer Reports made changes to its scoring methodology to account for the car’s exceptionally strong performance, and awarded the Tesla Model S P85D a final score of 100 points.
Developing a wide net of EV charging stations remains one of the largest challenges facing large-scale EV adoption nationwide. Last month, EVgo, an EV DC fast charging solutions firm, entered into a Memorandum of Understanding with the University of California, San Diego to help support developments in sustainable energy technology, according to a recent announcement.
The agreement formalizes an already strong collaboration focusing on the intersection of electric vehicles and energy storage, and EVgo says it is leading two projects at the university: a site for assessing how owners of EV DC charging sites can leverage solar, battery storage and control systems to mitigate site host demand charges and provide services to the grid; and operating a fleet of bidirectional electric vehicles from Nissan and Honda, including a modified version of the Honda Accord Plug-in Hybrid, to test applicability of vehicle-to-grid technology for California.