BY: Syed Naveed Kamil
As hybrid vehicles have become one of the established automobile segment by capturing a sizable share in the global automobile market over the last decade, the quest for fuel saving has pushed the technology to newer fronts. Plug-in Electric Vehicles (PEVs) are the contemporary disruption in the conventional car market and causing ripples in the automobile world. Plug-in electric vehicles run on an electric motor which is powered by rechargeable batteries. As opposed to the conventional hybrid electric vehicle, PEV is plugged in to the external power source to charge the batteries. PEV segment …show more content…
PEV sales in US
The table shows that more than half (58%) of the total sales occurred in 2013. The sales are increasing with the progressive years. In the first half of year 2014, PEVs accounted for 3.5% of all vehicles sold. Despite a better a better debut in US market compared to Hybrid Electric Vehicles (HEVs), PEVs still need a long while to truly disrupt the conventional car market. This could be seen from the percentage shares.
Low penetration of less than 1 percent PEVs in total US market though represents a small share has started the disruption process in the automobile sector albeit with a slower pace, Table 2. Percentage of PEV sales
Japan has been the second biggest market with sales figure of around 70,000 PEVs sold over the period of 4 years from 2009 to 2013. The penetration levels in Japan are at par with US. The key players are Nissan, Honda and Toyota.
China is the biggest automobile market, but the PEV sales figures are appalling. It is the third biggest market for PEVs with 38,592 units sold between 2011 and 2014. The penetration levels however are extremely low at 0.03 PEVs per 1000 …show more content…
At the time when PEVs debuted, due to low scale and production inefficiencies, the battery costs were overwhelmingly high. However, Electrification Coalition has forecasted that in 2020 due to ongoing research and growing number of battery
manufacturing plants the battery costs will go as down as lesser than half the price they cost now. The lower battery price will be translated into lower PEVs prices and hence narrowing the price gap with the conventional cars. According to a recent report by Navigant Research, the shipment of battery cells touched 6.7 billion. The rapid growth in the battery industry is mainly attributed to the increased sales of automotive batteries. The manufacturing hub for the battery industry is China.
Lithium-ion battery has emerged as the dominant standard for battery. Navigant Research reports that global revenue from electric vehicle batteries will reach $26.1 billion in 2023 from $6 billion in